Injurious
\nAffection Claims<\/p>\n
R\u00e9clamations pour
\ntroubles de jouissance<\/p>\n
PM
\n #<\/p>\n
40
\n00<\/p>\n
82
\n49<\/p>\n
R
\net<\/p>\n
ur
\nn <\/p>\n
un
\nde<\/p>\n
liv
\ner<\/p>\n
ab
\nle<\/p>\n
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\nan<\/p>\n
ad
\nia<\/p>\n
n
\nAd<\/p>\n
dr
\nes<\/p>\n
se
\ns <\/p>\n
to
\n: <\/p>\n
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\npr<\/p>\n
ai
\nsa<\/p>\n
l I
\nns<\/p>\n
tit
\nut<\/p>\n
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\nof<\/p>\n
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\nan<\/p>\n
ad
\na,<\/p>\n
4
\n03<\/p>\n
-2
\n00<\/p>\n
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\nat<\/p>\n
he
\nrin<\/p>\n
e
\nSt<\/p>\n
.,
\nO<\/p>\n
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\naw<\/p>\n
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\n O<\/p>\n
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\n K<\/p>\n
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\n 2<\/p>\n
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\nai<\/p>\n
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\nin<\/p>\n
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\n@<\/p>\n
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\nca<\/p>\n
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\nda<\/p>\n
.c
\na<\/p>\n
VoL 57 | book 2 \/ ToME 2 | 2013<\/p>\n
REgREssion AnAyLsis
\nL\u2019analyse de r\u00e9gression<\/p>\n
ACCREdiTATion pRoCEss undER REViEw
\nExamen strat\u00e9gique du processus <\/p>\n
d\u2019accr\u00e9ditation<\/p>\n
nEw REsidEnTiAL AppRAisAL foRM
\nnouveau formulaire <\/p>\n
d\u2019\u00e9valuation r\u00e9sidentielle<\/p>\n
t h E o f f i C i A L P u b L i C A t i o n o f t h E A p p R A i s A L i n s T i T u T E o f C A n A d A
\nP u b L i C A t i o n o f f i C i E L L E d E L\u2019 i n s T i T u T C A n A d i E n d E s \u00e9 V A L u A T E u R s<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@aicanada.ca
\nmailto:info@aicanada.ca<\/p>\n
ACI is a division of Verisk Analytics (NASDAQ: VRSK), a leading provider of risk assessment solutions to professionals in insurance, health care, mortgage
\nlending, government, risk management, and human resources. Verisk Analytics includes the holdings of Insurance Services Offi ce, Inc. (ISO) and its
\nsubsidiaries, which provide essential solutions to the insurance, mortgage lending, and healthcare markets. For more information, visit www.verisk.com.<\/p>\n
What\u2019s New in ?<\/p>\n
Subscribe to our mailing list for
\nCRAL updates and information.<\/p>\n
Using a QR code reader on your
\nsmart phone, select the code to
\nvisit our site. <\/p>\n
http:\/\/www.verisk.com
\nwww.aciweb.com<\/p>\n
ACI is a division of Verisk Analytics (NASDAQ: VRSK), a leading provider of risk assessment solutions to professionals in insurance, health care, mortgage
\nlending, government, risk management, and human resources. Verisk Analytics includes the holdings of Insurance Services Offi ce, Inc. (ISO) and its
\nsubsidiaries, which provide essential solutions to the insurance, mortgage lending, and healthcare markets. For more information, visit www.verisk.com.<\/p>\n
What\u2019s New in ?<\/p>\n
Subscribe to our mailing list for
\nCRAL updates and information.<\/p>\n
Using a QR code reader on your
\nsmart phone, select the code to
\nvisit our site. <\/p>\n
www.aciweb.com
\nmailto:support@aciweb.com<\/p>\n
www.collierscanada.com<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
10 THE ConTinuEd AdVAnCEMEnT
\nof ouR pRofEssion <\/p>\n
28 RETAining objECTiViTy is
\nCRiTiCAL foR An ExpERT wiTnEss<\/p>\n
42 ACCREdiTATion pRoCEss
\nundERgoEs MAjoR
\nsTRATEgiC REViEw<\/p>\n
46 A fooL wiTH A TooL is sTiLL A fooL<\/p>\n
50 dEsignATions, CAndidATEs,
\nsTudEnTs<\/p>\n
11 L\u2019AVAnCEMEnT ConTinu
\ndE noTRE pRofEssion<\/p>\n
30 dEMEuRER objECTif EsT CRiTiquE
\npouR un T\u00e9Moin ExpERT<\/p>\n
44 ExAMEn sTRAT\u00e9giquE MAjEuR du
\npRoCEssus d\u2019ACCR\u00e9diTATion<\/p>\n
47 un AbRuTi AVEC
\nun ouTiL REsTE un AbRuTi<\/p>\n
50 d\u00e9signATions, sTAgiAiREs,
\n\u00e9TudiAnTs<\/p>\n
CoLumns \/ ChRoniQuES<\/p>\n
fEATurEs \/ En VEdEttE<\/p>\n
75 MEMoRAbLE yEARs \u2014
\nTHE posT-wAR ERA 1946-1960
\n75 Ann\u00e9ES M\u00e9MoRAbLES \u2014
\nL\u2019APR\u00c8S-guERRE 1946-1960<\/p>\n
THE RoLE And CHALLEngEs
\nof THE iVsC AdVisoRy foRuM
\nLE R\u00d4LE Et LES d\u00e9fiS du
\nfoRuM ConSuLtAtif dE L\u2019iVSC<\/p>\n
VoL 57 | book 2 \/ ToME 2 | 2013<\/p>\n
Publication Mails Agreement #40008249.
\nReturn undeliverable Canadian addresses to: Appraisal institute of Canada,
\n403-200 Catherine St., ottawa, on k2P 2k9. Email: info@aicanada.ca<\/p>\n
the articles printed in this issue represent authors\u2019 opinions only and are not necessarily endorsed by the
\nAPPRAiSAL inStitutE of CAnAdA. Copyright 2013 by the APPRAiSAL inStitutE of CAnAdA. All rights
\nreserved. Reproduction in whole or in part without written permission is strictly prohibited. Subscription,
\n$40.00 per year. Printed in Canada. Les articles imprim\u00e9s dans ce num\u00e9ro ne rep\u00e9sentent que l\u2019opinion
\nde leur auteur respectif, mais ne sont pas n\u00e9ces\u2013sairement endoss\u00e9s par L\u2019inStitut CAnAdiEn dES
\n\u00e9VALuAtEuRS. tous droits reserv\u00e9s 2013 par L\u2019inStitut CAnAdiEn dES \u00e9VALuAtEuRS. La reproduc-
\ntion totale ou partielle sous quelque form que se soit sans authorisation \u00e9crite est absolument interdite.
\nAbonnement $40.00 par ann\u00e9e. imprim\u00e9 au Canada.<\/p>\n
* the Appraisal institute of Canada reserves the right to reject advertising that it deems to be inappropriate.
\n** the publisher and the Appraisal institute of Canada cannot be held liable for any material used or claims
\nmade in advertising included in this publication.indexed in the Canadian business index and available
\non-line in the Canadian business & Current Affairs database.
\nIssn 0827-2697<\/p>\n
publication management, design and production by:
\ndirection, conception et production par :<\/p>\n
3rd Floor \u2013 2020 Portage avenue
\nWinnipeg, MB R3J 0K4
\nPhone: 866-985-9780 \u2022 Fax: 866-985-9799
\nE-mail: info@kelman.ca \u2022 Web: www.kelman.ca<\/p>\n
Managing Editor: Craig Kelman
\ndesign\/Layout: Kristy Unrau
\nMarketing Manager: Kris Fillion
\nAdvertising Co-ordinator: Stefanie Ingram<\/p>\n
director – Marketing and Communications: Sheila Roy, Ottawa
\nCommunications offi cer: Mary-Jane Erickson, Ottawa<\/p>\n
75 MEMoRAbLE yEARs \u2014
\n06<\/p>\n
CHAMpions of THE nEw
\nREsidEnTiAL AppRAisAL foRM
\nChAMPionS du nouVEAu
\nfoRMuLAiRE d\u2019\u00e9VALuAtion
\nR\u00e9SidEntiELLE<\/p>\n
CHAMpions of THE nEw
\n12<\/p>\n
THE RoLE And CHALLEngEs
\n38<\/p>\n
injuRious AffECTion CLAiMs
\nR\u00e9CLAMAtionS PouR
\ntRoubLES dE JouiSSAnCE<\/p>\n
injuRious AffECTion CLAiMs
\n33<\/p>\n
ConTEnTs <\/p>\n
REgREssion AnALysis
\nL\u2019AnALySE dE R\u00e9gRESSion
\nREgREssion AnALysis
\n18<\/p>\n
tAbLE dES MAti\u00c8RES<\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 5<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@kelman.ca
\nhttp:\/\/www.kelman.ca<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
Welcome to Part II in our celebration of the Appraisal Institute of Canada\u2019s 75th
\nanniversary. In the previous issue of Canadian Property Valuation, we highlighted
\nthe Formative Years from 1930-1945, as the AIC transformed from a group of
\nManitoba individuals interested in learning more about appraising rural properties
\nto a formal, multi-province organization with a Board of Governors, specialty
\ncommittees, a Code of Ethics, designations and qualifying examinations. We
\nnow proudly present the Post-War Era from 1946-1960, which will be followed in
\nsubsequent issues with the Boom Years (1961-1980) and Today\u2019s AIC Takes Shape
\n(1981-2013). We welcome your comments and contributions as we refl ect on our
\namazing journey. <\/p>\n
75 MEMORABLE YEARS<\/p>\n
1946 1953 1955 1956
\npost-war Canada requires
\nd i f ferent appra i sa l sk i l l s
\nthan those required for the
\nDepression and war years. Th e
\naction is now in industrial,
\ncommercial and residential
\nd e v e l o p m e n t i n u r b a n
\ncommunities. Th e theme for
\nthe 1946 conference emphasizes
\nurban appraising. The AIC
\nbeg ins to wind down it s
\naffi liation with the ASFMRA
\nand initiates closer relations
\nwith the American Institute of
\nReal Estate Appraisers, a group
\nwith an urban orientation.<\/p>\n
T h e V e t e r a n s \u2019 L a n d
\nAdministration (VLA) insists
\nthat the AIC program be the
\nrequired professional standard
\nin the VLA. Th is results in a
\nmajor infl ux of new members.<\/p>\n
T he A IC rent s i t s f i r s t
\npermanent offi ce facilities in
\nthe Childs Building at the
\ncorner of Portage and Main
\nin Winnipeg. At its AGM,
\nthe membersh ip pa sse s a
\nresolution that there would be
\none designation for accredited
\nmembers, both urban and rural
\n\u2013 Appraisal Institute Member
\nAccredited (AIMA). By June
\nof 1956, the Council substitutes
\nAccredited Appraiser Canadian
\nInstitute (AACI) as the AIMA
\nwas found to confl ict with that
\nof other organizations.<\/p>\n
B a s e d on e x a m s o f t he
\nAmerican Institute, the first
\nCanadian examinations are set. <\/p>\n
T i M E L i n E<\/p>\n
1 9 4 6 1 9 4 7 1 9 4 8 1 9 4 9 1 9 5 0 1 9 5 1 1 9 5 2 1 9 5 3 1 9 5 4 1 9 5 5 1 9 5 6 1 9 5 7 1 9 5 8 1 9 5 9 1 9 6 0 <\/p>\n
A $ WENT
\nA LONG WAY<\/p>\n
1946 1950 1955 1959
\nNew Car : $1,400 $1,650 $1,950 $2,200
\nGasoline ($\/gal.) : $0.21 $0.26 $0.29 $0.30
\nNew House : $12,500 $14,500 $17,500 $18,500
\nAnnual Salary : $3,150 $3,600 $5,000 $5,500<\/p>\n
T H E P O S T –
\nW A R E R A <\/p>\n
1 9 4 6 – 1 9 6 0<\/p>\n
Jack MacDonald becomes the first public servant to be chosen as aIC president.<\/p>\n
Our first Executive Director
\nWilliam Mulock is hired in 1957.<\/p>\n
London, <\/p>\n
Ontario\u2019s <\/p>\n
James Egerton <\/p>\n
is the first <\/p>\n
president <\/p>\n
from outside <\/p>\n
Winnipeg.<\/p>\n
City of Toronto Archives, Globe and Mail fonds, Fonds 1266, Item 98646<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 20136<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
1957 1958 1959 1960
\nThe Institute\u2019s national office
\nmoves to the Electric Railway
\nChambers in Winnipeg, which
\nprojected a clean, modern image
\nin keeping with that of the AIC.<\/p>\n
february 10, 1959
\nThe A ACI de s ignat ion i s
\nprote c ted a s a r e g i s t e red
\ncertifi cation mark.<\/p>\n
20 years after the AIC\u2019s founding,
\nthe national Ethics Committee
\nreports to Council on its fi rst
\ninfraction of the Code of Ethics.<\/p>\n
october
\nThe first Executive Director,
\nWilliam N. Mulock, is hired
\nat a salary of $5,000 to take
\ncharge of AIC aff airs which,
\nuntil then, were handled by
\nvolunteers. <\/p>\n
The f irst issue of Appraisal
\nInstitute Magazine (AIM) is
\npublished.<\/p>\n
A new Ethics Committee is
\nstruck to draw up terms of
\nreference for a more eff ective
\ncode of ethics.<\/p>\n
Th e fi rst AGM held outside of
\nWestern Canada takes place in
\nHamilton. Th e election of Jack
\nMacDonald as president marks
\na shifting inf luence within
\nAIC membership. While the
\nearly leaders are predominantly
\nfrom the real estate investment
\nsector, new leadership shifts
\nto real estate agents, dealers
\nand appraisers. MacDonald is
\nthe fi rst public servant to be
\nchosen as AIC president. His
\nappointment recognizes the
\nreality of the mixed economy
\ndeveloping in Canada and
\nthe growing involvement of
\nall three tiers of government
\nin financial affairs and real
\nestate. Housing, Veterans
\nAff airs, Public Works, Trade
\nand Commerce and Taxation
\nall require expert staff to render
\nopinions on the value of real
\nproperty to protect the public
\ninterest.<\/p>\n
Membership stands at 1247
\n\u2013 55% w it h government
\ndepa r t ment s , 27% w it h
\nmortgage and trust companies
\nand other fi nancial institutions,
\na n d 18 % a r e r e a l t o r s .
\nMembership is now spread
\nacross Canada . The four
\noriginal prairie chapters have
\nexpanded to 20 and are located
\nin all provinces but PEI and
\nNewfoundland. <\/p>\n
An aff iliation agreement is
\nnegotiated with Canadian
\nAssociation of Real Estate
\nBoards (CAREB) to recognize
\nAIC and encourage CAREB
\nmembers to take the Institute\u2019s
\ncourse of study, while AIC
\nhelps to provide the real estate
\nappraisal education CAREB
\ndesires for its membership.<\/p>\n
L a r g e nu m b e r s o f A IC
\ncandidates earn their MAI
\ndesignation with the American
\nIn s t it ute of Rea l E s t a te
\nAppraisers. AIC recognizes
\nthe designation as equivalent
\nand grants the AACI without
\nfurther examination. <\/p>\n
L ondon, Ontar io\u2019s James
\nW. Egerton is elected as the
\nfirst president from outside
\nWinnipeg.<\/p>\n
AIC publishes its fi rst offi cial
\nt e x tbook , t he Appra i s a l
\nReference Manual, and various
\nuniversities across the country
\noff er their extension facilities
\ni f A IC provides lecturers
\nand course materia ls. The
\navailability of these courses
\nacross Canada attracts more
\nmembers and reinforces the
\nAIC\u2019s prominence.<\/p>\n
April 11, 1960
\nLetters Patent are granted and
\nAIC has the Dominion charter
\nrecognizing it as a non-profi t
\ncorporation. <\/p>\n
1 9 4 6 1 9 4 7 1 9 4 8 1 9 4 9 1 9 5 0 1 9 5 1 1 9 5 2 1 9 5 3 1 9 5 4 1 9 5 5 1 9 5 6 1 9 5 7 1 9 5 8 1 9 5 9 1 9 6 0 <\/p>\n
A I C P R E S I D E N T S 1 9 3 8 – 1 9 6 0<\/p>\n
1938 – W.B. McCutcheon, AACI, P. App
\n1939 – H.M. Morrison, MAI
\n1940 – F.W. Gulland
\n1941 – W.J. Smith, AACI, P. App
\n1942 – W.H. Gray
\n1943 – H.R. Glover
\n1944 – C.N. Rogers, AACI, P. App
\n1945 – A.R. Purchase<\/p>\n
1946 – G.C. Elliott, AACI, P. App
\n1947 – H.M. Morrison, MAI
\n1948 – A.R. Judson, AACI, P. App
\n1949 – J.S. McPherson
\n1950 – T.A. McFarlen, AACI, P. App
\n1951 – E.R. Ransby
\n1952 – G.M. Bowes, AACI, P. App
\n1953-54 – V.E. Driver, AACI, P. App<\/p>\n
1955 – I. Cristall, AACI, P. App
\n1956 – A. Turpie, AACI, P. App
\n1957-58 – J.A. MacDonald
\n1959 – D.G. Edmond, AACI, P. App
\n1960 – J.W. Egerton, AACI, P. App
\n(Encadr\u00e9 – Citations)<\/p>\n
To keep up with our
\ngrowth, we re-locate
\nin Winnipeg\u2019s Electric
\nRailway Chambers.<\/p>\n
We broadened
\nour reach with
\nthe first issue
\nof our national
\nmagazine.<\/p>\n
Our first o
\nfficial textb<\/p>\n
ook<\/p>\n
is publish
\ned in 1960<\/p>\n
.<\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 7<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
Bienvenue au chapitre 2 de notre c\u00e9l\u00e9bration du 75e anniversaire de l\u2019Institut canadien
\ndes \u00e9valuateurs ! Dans le dernier num\u00e9ro de la revue \u00c9valuation immobili\u00e8re au Canada,
\nnous avons rappel\u00e9 les ann\u00e9es de formation 1930-1945, alors que l\u2019ICE est pass\u00e9 d\u2019un
\ngroupe de personnes du Manitoba d\u00e9sireuses d\u2019en apprendre davantage sur l\u2019\u00e9valuation
\ndes propri\u00e9t\u00e9s rurales \u00e0 une organisation offi cielle active dans plusieurs provinces,
\ndot\u00e9e d\u2019un Conseil des gouverneurs, de comit\u00e9s sp\u00e9cialis\u00e9s, d\u2019un Code d\u2019\u00e9thique, de
\nd\u00e9signations et d\u2019examens de qualifi cation. C\u2019est avec beaucoup de fi ert\u00e9 que nous
\npr\u00e9sentons maintenant les ann\u00e9es de l\u2019apr\u00e8s-guerre, 1946-1960, suivies dans les prochains
\nnum\u00e9ros des ann\u00e9es d\u2019expansion (1961-1980) et de l\u2019ICE d\u2019aujourd\u2019hui (1981-2013).
\nNous vous invitons \u00e0 nous faire part de vos commentaires et contributions alors que nous
\nretra\u00e7ons les pas de notre fantastique voyage.<\/p>\n
75 ANN\u00c9ES M\u00c9MORABLES<\/p>\n
Le Canada de l\u2019apr\u00e8s-guerre
\ndemande des comp\u00e9tences
\nd \u2019 \u00e9va luat ion d i f f\u00e9rant de
\ncelles de la grande d\u00e9pression
\net des ann\u00e9es de conf l it .
\nOn s\u2019occupe maintenant de
\nd\u00e9veloppement industriel,
\ncommercial et r\u00e9sidentiel dans
\nles communaut\u00e9s urbaines.
\nLe th\u00e8me de la conf\u00e9rence de
\n1946 met en relief l\u2019\u00e9valuation
\nu r b a i n e . L\u2019 I C E r \u00e9 d u i t
\nprogressivement son affi liation
\navec l\u2019ASFMRA et poursuit
\ndes relations plus \u00e9troites avec
\nl\u2019American Institute of Real
\nEstate Appraisers, un groupe
\nplus orient\u00e9 vers les centres
\nurbains.<\/p>\n
L\u2019Off ice de l \u2019\u00e9tablissement
\na g r i c o l e d e s a n c i e n s
\ncombattants (OEAAC) insiste
\npour que le programme de
\nl \u2019 ICE dev ienne la norme
\nprofessionnelle obligatoire \u00e0
\nl \u2019OEA AC, ce qui entra\u00eene
\nun grand affl ux de nouveaux
\nmembres.<\/p>\n
L\u2019 ICE loue s e s premier s
\nbureaux permanents dans
\nl\u2019\u00e9difi ce Childs, angle Portage
\net Main \u00e0 Winnipeg. Lors
\nde leur AGA, les membres
\nadoptent une r\u00e9solution voulant
\nque l\u2019on cr\u00e9e une d\u00e9signation
\npour les membres accr\u00e9dit\u00e9s,
\ntant urbaine que rurale, soit
\nAppraisal Institute Member
\nAccredited (AIMA). En juin
\n1956, le Conseil remplace la
\nd\u00e9signation par Accredited
\nAppraiser Canadian Institute
\n(A ACI), car la d\u00e9signation
\nAIMA entre en conf lit avec
\ncelle d\u2019autres organisations.<\/p>\n
S \u2019 in spi r a nt de s e x a mens
\nadministr\u00e9s par l \u2019American
\nInstitute, on \u00e9tablit les premiers
\nexamens canadiens.<\/p>\n
H i s T o R i q u E<\/p>\n
1 9 4 6 1 9 4 7 1 9 4 8 1 9 4 9 1 9 5 0 1 9 5 1 1 9 5 2 1 9 5 3 1 9 5 4 1 9 5 5 1 9 5 6 1 9 5 7 1 9 5 8 1 9 5 9 1 9 6 0 <\/p>\n
CE QUE
\nVALAIT LE $<\/p>\n
1946 1950 1955 1959
\nVoiture neuve : 1 400 $ 1 650 $ 1 950 $ 2 200 $
\nEssence ($\/gal.) : 0,21 $ 0,26 $ 0,29 $ 0,30 $
\nMaison neuve : 12 500 $ 14 500 $ 17 500 $ 18 500 $
\nSalaire annuel : 3 150 $ 3 600 $ 5 000 $ 5 500 $<\/p>\n
1946 1953 1955 1956<\/p>\n
L\u2019 A P R \u00c8 S – G
\nU E R R E 1 9 4<\/p>\n
6 – 1 9 6 0<\/p>\n
nous avons accru notre port\u00e9e
\navec le premier num\u00e9ro de notre
\nrevue nationale. <\/p>\n
Jack MacDonald devient le premier fonctionnaire \u00e0 occuper la pr\u00e9sidence de l\u2019ICE.<\/p>\n
notre premier chef de la direction,
\nWilliam Mulock, a \u00e9t\u00e9 engag\u00e9 en 1957.<\/p>\n
James Egerton<\/p>\n
de London, <\/p>\n
Ontario, est <\/p>\n
le premier <\/p>\n
pr\u00e9sident vena
\nnt <\/p>\n
de l\u2019ext\u00e9rieur d
\ne <\/p>\n
Winnipeg.<\/p>\n
City of Toronto Archives, Globe and Mail fonds, Fonds 1266, Item 98646<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 20138<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
Le bureau national de l\u2019Institut
\nd\u00e9m\u00e9na ge da ns l \u2019 \u00e9d i f ic e
\nElectric Railway Chambers \u00e0
\nWinnipeg, qui voulait projeter
\nune image soign\u00e9e et moderne,
\ntout comme celle de l\u2019ICE.<\/p>\n
Le 10 f\u00e9vrier 1959
\nLa d\u00e9signation AACI re\u00e7oit une
\nprotection en tant que marque
\nde certifi cation d\u00e9pos\u00e9e.<\/p>\n
Vingt ans apr\u00e8s la fondation de
\nl\u2019ICE, le Comit\u00e9 national sur
\nl\u2019\u00e9thique pr\u00e9sente au Conseil
\nun rapport sur la premi\u00e8re
\ninfraction au Code d\u2019\u00e9thique.<\/p>\n
octobre
\nLe premier directeur ex\u00e9cutif,
\nWilliam N. Mulock, est embauch\u00e9
\n\u00e0 un salaire de 5000 $ pour prendre
\nen main les aff aires de l\u2019ICE qui,
\njusque l\u00e0, avaient \u00e9t\u00e9 administr\u00e9es
\npar des b\u00e9n\u00e9voles.<\/p>\n
On publie le premier num\u00e9ro de
\nl\u2019Appraisal Institute Magazine (AIM).<\/p>\n
Un nouveau Comit\u00e9 sur l\u2019\u00e9thique
\nest mis sur pied afi n d\u2019\u00e9laborer le
\ncadre de r\u00e9f\u00e9rence r\u00e9gissant un Code
\nd\u2019\u00e9thique plus effi cace.<\/p>\n
La premi\u00e8re AGA tenue \u00e0 l\u2019ext\u00e9rieur
\nde l \u2019Ouest canadien se d\u00e9roule
\n\u00e0 Hamilton. L\u2019\u00e9lection de Jack
\nMacDonald \u00e0 la pr\u00e9sidence marque
\nune infl uence in\u00e9dite au sein des
\nmembres de l\u2019ICE. Alors que les
\npremiers dirigeants proviennent
\nsurtout du secteur de l\u2019investissement
\nimmobilier, le nouveau leadership se
\ntrouve de plus en plus parmi les
\nagents, les courtiers et les \u00e9valuateurs
\nimmobiliers. M. MacDonald est le
\npremier fonctionnaire choisi comme
\npr\u00e9sident de l\u2019ICE. Sa nomination
\nrefl \u00e8te la r\u00e9alit\u00e9 de l\u2019\u00e9conomie mixte
\nqui se d\u00e9veloppe au Canada et la
\nparticipation croissante des trois
\npaliers de gouvernement aux aff aires
\nfinanci\u00e8res et \u00e0 l\u2019immobilier. Le
\nlogement, les anciens combattants,
\nles travaux publics, les \u00e9changes et le
\ncommerce, de m\u00eame que la taxation,
\nrequi\u00e8rent tous un personnel expert
\npour rendre des opinions sur la
\nvaleur des biens immobiliers de
\nmani\u00e8re \u00e0 prot\u00e9ger l\u2019int\u00e9r\u00eat public.<\/p>\n
L\u2019organisation compte 1247
\nmembres : 55 % provenant de
\nminist\u00e8res gouvernementaux,
\n27 % de soci\u00e9t\u00e9s de pr\u00eats
\nhypoth\u00e9caires, de fiducie et
\nautres institutions fi nanci\u00e8res,
\net 18 % du secteur du courtage
\nen va leurs immobi l i\u00e8re s .
\nOn trouve aujourd\u2019hui des
\nmembres \u00e0 travers tout le
\nCanada. Les quatre chapitres
\noriginaux des Prairies sont
\nmaintenant au nombre de
\nvingt, r\u00e9partis dans toutes les
\nprovinces, \u00e0 l \u2019exception de
\nl\u2019\u00cele-du-Prince-\u00c9douard et de
\nTerre-Neuve.<\/p>\n
O n n\u00e9 g o c i e u n c ont r a t
\nd\u2019affi liation avec l\u2019Association
\ncanadienne des chambres
\nd \u2019 immeuble (ACCI) a f in
\nde r e c on na \u00eet r e l \u2019 ICE e t
\nd\u2019encourager les membres de
\nl\u2019ACCI \u00e0 suivre le programme
\nd\u2019\u00e9tudes de l\u2019Institut, tandis
\nque l \u2019ICE aide \u00e0 fournir la
\nformat ion en \u00e9 va luat ion
\nimmobi l i\u00e8re que souha ite
\nl\u2019ACCI pour ses membres.<\/p>\n
Un grand nombre de stagiaires
\nobtiennent leur d\u00e9signation
\nMAI de l\u2019American Institute
\nof Rea l Estate Appraisers.
\nReconnaissant son \u00e9quivalence,
\nl\u2019ICE accorde la d\u00e9signation
\nAACI sans plus d\u2019examen.<\/p>\n
James W. Egerton, de London,
\nOntario, est \u00e9lu comme premier
\npr\u00e9sident \u00e0 l \u2019ext\u00e9r ieur de
\nWinnipeg.<\/p>\n
L\u2019ICE publie son premier manuel
\nof f iciel, intitul\u00e9 Appraisal
\nReference Manual, alors que
\ndiff \u00e9rentes universit\u00e9s du pays
\noffrent leurs installations de
\nformation continue si l\u2019ICE
\nveut bien y d\u00e9p\u00eacher des charg\u00e9s
\nd\u2019enseignement et du mat\u00e9riel
\nde cours. La disponibilit\u00e9 de ces
\ncours \u00e0 l\u2019\u00e9chelle du pays attire
\nd\u2019autres membres et augmente
\nd\u2019autant l\u2019importance de l\u2019ICE.<\/p>\n
Le 11 avril 1960
\nL\u2019ICE re\u00e7oit ses lettres patentes
\net poss\u00e8de une charte f\u00e9d\u00e9rale
\nqui la reconna\u00eet comme une
\ncorporation sans but lucratif.<\/p>\n
1 9 4 6 1 9 4 7 1 9 4 8 1 9 4 9 1 9 5 0 1 9 5 1 1 9 5 2 1 9 5 3 1 9 5 4 1 9 5 5 1 9 5 6 1 9 5 7 1 9 5 8 1 9 5 9 1 9 6 0 <\/p>\n
P R \u00c9 S I D E N T S D E L\u2019 I C E 1 9 3 8 – 1 9 6 0<\/p>\n
1938 – W.B. McCutcheon, AACI, P. App
\n1939 – H.M. Morrison, MAI
\n1940 – F.W. Gulland
\n1941 – W.J. Smith, AACI, P. App
\n1942 – W.H. Gray
\n1943 – H.R. Glover
\n1944 – C.N. Rogers, AACI, P. App
\n1945 – A.R. Purchase<\/p>\n
1946 – G.C. Elliott, AACI, P. App
\n1947 – H.M. Morrison, MAI
\n1948 – A.R. Judson, AACI, P. App
\n1949 – J.S. McPherson
\n1950 – T.A. McFarlen, AACI, P. App
\n1951 – E.R. Ransby
\n1952 – G.M. Bowes, AACI, P. App
\n1953-54 – V.E. Driver, AACI, P. App<\/p>\n
1955 – I. Cristall, AACI, P. App
\n1956 – A. Turpie, AACI, P. App
\n1957-58 – J.A. MacDonald
\n1959 – D.G. Edmond, AACI, P. App
\n1960 – J.W. Egerton, AACI, P. App
\n(Encadr\u00e9 – Citations)<\/p>\n
1957 1958 1959 1960<\/p>\n
Suite \u00e0 notre expansion, nous
\navons d\u00e9m\u00e9nag\u00e9 dans les locaux
\nde la Winnipeg\u2019s Electric Railway.<\/p>\n
notre prem
\nier manuel<\/p>\n
officiel est
\n publi\u00e9 en <\/p>\n
1960. <\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 9<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
EXECuTIvE CoRnER<\/p>\n
DAvID shum, AACI, p. App
\nPRESidEnt<\/p>\n
THE ConTinuEd
\nAdVAnCEMEnT <\/p>\n
of ouR pRofEssion<\/p>\n
o Th e Consolidated Regulations are
\nbeing revised<\/p>\n
o Th ere has been continuous
\nimprovement to the Complaint
\nResolution Process.<\/p>\n
o Th e new AIC residential form has
\nbeen released. <\/p>\n
o Th ere has been a greater
\ncommitment to educating members
\non CUSPAP and professional
\npractice matters <\/p>\n
o Our Professional Liability Insurance
\nProgram is moving towards
\nbecoming a risk-based program.<\/p>\n
o A one-day online Professional
\nPractice Seminar was implemented
\nto reduce cost and improve access.<\/p>\n
o A Quebec pilot-project was
\nimplemented to assist AIC members
\nwith co-signing qualifi ed non-AIC
\nmembers. <\/p>\n
\u2022 Accreditation and Assessment:
\no We are redefi ning the core <\/p>\n
competencies and competency
\nmapping for AACIs and CRAs to
\nsecure our professional reputation <\/p>\n
o We have benchmarked AIC policies\/
\nprograms to ensure our accreditation
\nand assessment process is aligned to
\nother professional organizations and
\nAIC remains \u2018leading-edge\u2019.<\/p>\n
o Th e Mentoring Program has been
\nreviewed to further defi ne roles and
\nresponsibilities <\/p>\n
o A Peer Review Process has been
\ndeveloped to review Candidate
\nMembers\u2019 work product.<\/p>\n
\u2022 Marketing and Communications:
\no Th e website has been redesigned <\/p>\n
to represent our membership
\nmore eff ectively and implement
\nmore functionality in the \u2018Find an
\nAppraiser\u2019 tool.<\/p>\n
o A recruitment and corporate
\ninitiatives advertising campaign has
\nbeen created and implemented.<\/p>\n
o Our publications now off er greater
\naccess to information in both
\noffi cial languages.<\/p>\n
o New communication tools
\nsuch as webinars are improving
\ncommunication with our members.<\/p>\n
o Th ere is a continued commitment
\nto work collaboratively with the
\nprovincial affi liates to ensure brand
\nconsistency and excellent member
\nservice.<\/p>\n
\u2022 Governance:
\no AIC has implemented a new <\/p>\n
committee structure to streamline
\nour governance model. New terms
\nof reference have been drafted to
\noutline objectives, responsibilities
\nand committee requirements.<\/p>\n
o Th e AIC By-laws and Articles of
\nContinuance have been updated to
\nalign and comply with Industry
\nCanada\u2019s new Not-for-profi t
\nCorporations Act.<\/p>\n
As I hand the reins over to President-
\nElect, Dan Wilson, AACI, P. App., there
\nare some key opportunities for AIC.
\nWe will continue to move forward by
\nassessing programs, evaluating what is
\nworking, and ensuring we watch market
\nconditions to bring the best services to
\nour members to help them succeed. Th e
\nkey to success will be listening to our
\nmembers.<\/p>\n
Th ank you all for your support and
\nguidance this year as well as sparking
\nimportant discussions on what is best
\nfor the AIC membership. Th rough these
\ndiscussions, we can grow stronger as a
\nnational organization \u2013 working towards
\nadvancing our profession. <\/p>\n
T his year, I have had the privilege of representing Appraisal Institute of Canada (AIC) members, nationally and internationally
\nwhile working alongside Board colleagues
\nto leverage new opportunities and address
\ncore issues and membership concerns. I have
\nalso enjoyed working with AIC\u2019s national
\nand provincial staff who eff ectively managed
\nkey issues, enabling the Board to focus on
\nstrategic decisions. <\/p>\n
A few things have become very clear.
\n\u2022 Internationally AIC is highly respected as <\/p>\n
an established professional association in
\nCanada and an authority in real property
\nappraisals. <\/p>\n
\u2022 Our volunteers are extremely dedicated
\nwith the interests of their constituents
\nand the whole membership at heart. <\/p>\n
\u2022 AIC staff has the expertise and
\nknowledge to help AIC achieve our
\nstrategic goals and vision. <\/p>\n
We have a diverse membership from diff er-
\nent regions with unique market conditions;
\nwe have a vast range of experience; and,
\nwe specialize in various property types and
\nservices. But we all strive to produce qual-
\nity valuation reports and provide intelligent
\ninsight on real property issues; we are proud
\nof our designations and our Association;
\nand, we are committed to our profession.<\/p>\n
My goal as president has been to continue
\ntaking AIC along a course that appreciates
\nour diff erences and leverage our similarities
\nto collaboratively advance our profession. <\/p>\n
I am confi dent that we are moving in the
\nright direction and have made signifi cant
\nstrides to advance our profession this year.
\nSome highlights include:
\n\u2022 Professional Practice:<\/p>\n
o Th e Standards Sub-committee
\nreleased the 2012 CUSPAP and the
\n2014 version is being drafted.<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201310<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
LE Coin dE L\u2019EX\u00c9CuTIf<\/p>\n
DAvID shum, AACI, p. App
\nPR\u00e9SidEnt<\/p>\n
L\u2019AVAnCEMEnT
\nConTinu dE noTRE <\/p>\n
pRofEssion<\/p>\n
Cette ann\u00e9e, j\u2019ai repr\u00e9sent\u00e9 les membres de l\u2019Institut canadien des \u00e9valuateurs (ICE) aux paliers national et international. Collaborant avec
\nmes coll\u00e8gues du Conseil pour optimiser les
\nnouvelles occasions et aborder les enjeux qui
\npr\u00e9occupent les membres, j\u2019ai eu le plaisir
\nde travailler avec le personnel national et
\nprovincial de l\u2019ICE qui a assur\u00e9 la bonne
\ngestion des enjeux cl\u00e9s, permettant au Conseil
\nde concentrer sur les d\u00e9cisions strat\u00e9giques.<\/p>\n
Quelques \u00e9l\u00e9ments sont devenus tr\u00e8s clairs.
\n\u2022 \u00c0 l\u2019\u00e9chelle internationale, l\u2019ICE est <\/p>\n
hautement respect\u00e9 comme association
\nprofessionnelle au Canada, et autorit\u00e9 en
\nmati\u00e8re d\u2019\u00e9valuation immobili\u00e8re.<\/p>\n
\u2022 Nos b\u00e9n\u00e9voles sont extr\u00eamement
\nd\u00e9vou\u00e9s, ayant \u00e0 c\u0153ur les int\u00e9r\u00eats de leurs
\nmandants et de tous les membres. <\/p>\n
\u2022 Le personnel poss\u00e8de l\u2019expertise et les
\nconnaissances pour r\u00e9aliser les objectifs
\ndu plan strat\u00e9gique et la vision d\u2019avenir de
\nl\u2019ICE.<\/p>\n
Nous avons une diversit\u00e9 de membres prov-
\nenant de diff \u00e9rentes r\u00e9gions qui pr\u00e9sentent des
\nconditions de march\u00e9 uniques. Nous poss\u00e9-
\ndons une vaste exp\u00e9rience et sommes sp\u00e9ciali-
\ns\u00e9s dans plusieurs types de biens et de services
\nimmobiliers. Mais nous tentons tous de
\nproduire des rapports d\u2019\u00e9valuation de grande
\nqualit\u00e9 et de brosser un portrait intelligent des
\nenjeux immobiliers. Nous sommes fi ers de
\nnos titres et de notre Association, et sommes
\nd\u00e9termin\u00e9s \u00e0 faire avancer notre profession.<\/p>\n
Mon but comme pr\u00e9sident a \u00e9t\u00e9 de con-
\ntinuer \u00e0 mener l\u2019ICE sur un chemin o\u00f9 nous
\npouvons appr\u00e9cier nos diff \u00e9rences et tirer
\nprofi t de nos similitudes, tout en favorisant
\ncollectivement notre profession.<\/p>\n
Je peux affi rmer que nous sommes sur la
\nbonne voie et que nous avons fait de grands
\nprogr\u00e8s pour am\u00e9liorer notre profession cette
\nann\u00e9e. Voici quelques faits saillants :<\/p>\n
\u2022 Pratique professionnelle :
\no Le Sous-comit\u00e9 sur les normes a publi\u00e9 <\/p>\n
les NUPPEC 2012 et en pr\u00e9pare la
\nversion 2014.<\/p>\n
o On r\u00e9vise pr\u00e9sentement les R\u00e8glements
\nconsolid\u00e9s de l\u2019ICE.<\/p>\n
o Le processus de r\u00e9solution des plaintes a
\nconnu une am\u00e9lioration constante.<\/p>\n
o Le nouveau formulaire r\u00e9sidentiel de
\nl\u2019ICE a \u00e9t\u00e9 publi\u00e9.<\/p>\n
o Nous sommes encore plus d\u00e9termin\u00e9s \u00e0
\n\u00e9duquer les membres sur les NUPPEC
\net les questions touchant la pratique
\nprofessionnelle.<\/p>\n
o Notre programme d\u2019assurance-
\nresponsabilit\u00e9 professionnelle sera
\nbient\u00f4t ax\u00e9 sur les risques.<\/p>\n
o Un S\u00e9minaire de pratique
\nprofessionnelle d\u2019un jour en ligne a eu
\nlieu pour r\u00e9duire les co\u00fbts et am\u00e9liorer
\nl\u2019acc\u00e8s.<\/p>\n
o Un projet pilote a eu lieu au Qu\u00e9bec
\npour aider les membres de l\u2019ICE
\n\u00e0 cosigner pour les non-membres
\nqualifi \u00e9s.<\/p>\n
\u2022 Accr\u00e9ditation et \u00e9valuation :
\no Nous sommes \u00e0 red\u00e9fi nir les comp\u00e9-<\/p>\n
tences de base et la grille de comp\u00e9-
\ntences pour les \u00e9valuateurs accr\u00e9dit\u00e9s
\nAACI et CRA pour solidifi er notre
\nr\u00e9putation professionnelle.<\/p>\n
o Nous avons \u00e9talonn\u00e9 les politiques et
\nprogrammes de l\u2019ICE pour que notre
\nprocessus d\u2019accr\u00e9ditation et d\u2019\u00e9valuation
\ns\u2019aligne avec celui d\u2019autres organisa-
\ntions professionnelles et pour que l\u2019ICE
\ndemeure \u00e0 l\u2019avant-garde.<\/p>\n
o Le programme de mentorat a \u00e9t\u00e9 r\u00e9vis\u00e9
\npour mieux d\u00e9fi nir les r\u00f4les et respon-
\nsabilit\u00e9s de chacun.<\/p>\n
o Nous avons d\u00e9velopp\u00e9 un processus
\nd\u2019examen par les pairs pour analyser le
\ntravail des membres stagiaires.<\/p>\n
\u2022 Marketing et communications :
\no Nous avons r\u00e9am\u00e9nag\u00e9 le site Web <\/p>\n
dans le but de mieux repr\u00e9senter nos
\nmembres et de rendre l\u2019outil \u00ab Trouver
\nun \u00e9valuateur \u00bb plus fonctionnel.<\/p>\n
o Nous avons \u00e9labor\u00e9 et implant\u00e9 une
\ncampagne publicitaire de recrutement
\net d\u2019entreprise.<\/p>\n
o Nos publications sont d\u00e9sormais
\nplus accessibles dans les deux langues
\noffi cielles.<\/p>\n
o De nouveaux outils de communication
\ntels les webinaires am\u00e9liorent le contact
\navec les membres.<\/p>\n
o Nous sommes toujours d\u00e9termin\u00e9s \u00e0 col-
\nlaborer avec tous nos affi li\u00e9s provinciaux
\npour assurer la coh\u00e9rence de la marque et
\nl\u2019excellence des services aux membres.<\/p>\n
\u2022 Gouvernance :
\no L\u2019ICE a restructur\u00e9 ses comit\u00e9s pour <\/p>\n
rationaliser son mod\u00e8le de gouvernance,
\net r\u00e9dig\u00e9 de nouveaux mandats pour
\nconfi rmer les objectifs, les responsabili-
\nt\u00e9s, et les exigences des comit\u00e9s.<\/p>\n
o Nous avons mis \u00e0 jour les r\u00e8glements et
\nles statuts de prorogation de l\u2019ICE en
\nconformit\u00e9 \u00e0 la nouvelle Loi canadienne
\nsur les organisations \u00e0 but non lucratif
\nd\u2019Industrie Canada.<\/p>\n
Comme je passe la barre au pr\u00e9sident \u00e9lu,
\nDan Wilson, AACI, P. App., l\u2019ICE a de grands
\nd\u00e9bouch\u00e9s \u00e0 exploiter. Nous poursuivrons
\nnotre analyse des programmes, notre \u00e9valuation
\nde ce qui fonctionne bien et notre surveillance
\ndu march\u00e9 pour off rir les meilleurs services \u00e0
\nnos membres et les aider \u00e0 r\u00e9ussir. La cl\u00e9 du
\nsucc\u00e8s consistera \u00e0 \u00e9couter nos membres.<\/p>\n
Merci \u00e0 tous et \u00e0 toutes pour votre appui et
\nvos conseils cette ann\u00e9e et pour les importantes
\ndiscussions tenues dans les meilleurs int\u00e9r\u00eats des
\nmembres de l\u2019ICE. Ces \u00e9changes nous rendent
\nplus forts comme organisation nationale et nous
\npermettent de faire avancer notre profession. <\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 11<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
I n 2010, when the Appraisal Institute of Canada (AIC) executive approached Form Sub-Committee Chair Dan Brewer, AACI, P. App. about revising
\nthe residential appraisal form, he knew
\nexactly who to call. From 2001 to 2004,
\nGarry Doucette, AACI, P. App. had spent
\ncountless hours creating the Institute\u2019s
\nfi rst-ever standardized electronic version of
\nthe form (Full Form 04\/04). <\/p>\n
\u201cBut now our rules and Regulations
\nhad changed,\u201d explains Brewer, \u201cand those
\nchanges needed to be refl ected in the form.\u201d<\/p>\n
Some of those changes refl ected new
\nregulations established by the Offi ce
\nof the Superintendent of Financial
\nInstitutions (OSFI) Canada and under
\nthe Canadian Uniform Standards of
\nProfessional Appraisal Practice (CUSPAP);
\nothers resulted from the Personal
\nInformation Protection and Electronic
\nDocuments Act (PIPEDA). <\/p>\n
\u201cTh e intent was also to increase
\ncompliance to AIC rules and, hopefully,
\nreduce claims and liabilities,\u201d notes
\nBrewer, a National Board Director
\nwho has worked both as a litigator and
\nnational investigator. <\/p>\n
For instance, in the section dedicated
\nto intended use of the report, indicating
\n\u2018mortgage fi nancing\u2019 or simply \u2018fi nancing\u2019
\nis insuffi cient. Yet, to date, that is what
\nhas sometimes been entered. In order to
\nrestrict the use and intent of the report \u2013
\nthus reducing liability and risk exposure
\n\u2013 the form needed to demand a more
\nprecise specifi cation of purpose, such as
\n\u2018conventional fi rst mortgage fi nancing\u2019. <\/p>\n
CHaMPIOnS OF THE nEW
\nresidential appraisal form<\/p>\n
B Y C H R I S T I N E H A N L O N<\/p>\n
\u201cIt is important that appraisers
\nprotect themselves from having poten-
\ntial second, third and fourth mortgages
\nregistered on the property at their
\nexpense,\u201d explains Brewer.<\/p>\n
To prompt appraisers to be more
\nspecifi c, the form had to be modifi ed.
\nSuch changes required technical exper-
\ntise. Th at is where Doucette came in.
\nBetween 2001 and 2004, the father of
\ntwo had devoted hundreds of hours get-
\nting the form online, all while working
\nfull-time as an appraiser in Port Alberni
\nand completing the requirements for his
\nAACI designation. Now that it was time
\nfor modifi cations, Doucette was not
\nabout to drop the ball.<\/p>\n
Despite the fact that Brewer was
\nbased in Southern Ontario, half a
\ncontinent away, the pair worked
\ntogether on the project for two years,
\nculminating in a revised appraisal form
\nprepared for launching in early 2013.
\nTh ey established a process that involved
\nregular emails, phone calls, research and
\nimplementation. <\/p>\n
Much like Doucette had done in the
\nlead-up to the fi rst online form, the two <\/p>\n
\u201cbanks rely on us to be
\ntheir eyes and ears and to supply them with
\ninformation…with the new form, there is an <\/p>\n
addendum for every different circumstance.\u201d<\/p>\n
GaRRY DOUCETTE<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201312<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
started by conducting extensive consulta-
\ntion with members and stakeholders,
\nincluding chartered banks, credit unions,
\nthe mortgage insurance sector, Canadian
\nMortgage and Housing Corporation, and
\nCanada Revenue Agency. A letter was
\nsent to the Canadian Bankers Association
\nadvising them that the form would be
\nupdated and asking them for their sugges-
\ntions. Feedback was helpful and some of it
\nwas incorporated into the new form. <\/p>\n
\u201cTh anks to all the work that was
\ncompleted leading up to 2004, the
\nconsultation process did not take as long
\nthis time,\u201d notes Doucette. \u201cWe would
\npropose a change and discuss it; I would
\nmake the change and send it off to Dan.
\nTh en, when we had a draft, we would
\ncirculate it and gather feedback.\u201d <\/p>\n
Meanwhile, Brewer worked on new
\nwording to refl ect PIPEDA legislation
\n(encapsulated in the fi rst clause of the new
\nform). Th e privacy legislation is very clear
\non how information can and cannot be
\nshared. If an appraiser provides a report
\nto anyone other than the intended user or
\nclient, all third party information must be
\nredacted. Non-compliance, Brewer points
\nout, is not an option.<\/p>\n
Th e new clause not only protects the
\nrights of clients, but of appraisers as well.
\n\u201cSome organizations have been scraping
\ndata out of appraisal reports, something
\nwhich is not permitted based on the
\nservice providers to which we subscribe,\u201d
\nexplains Brewer.<\/p>\n
Other important changes involved
\nensuring the form complies with the
\n2012 CUSPAP Standards. For instance,
\nthe new form also requests specifi c <\/p>\n
information such as source data, to
\nensure appraisers are identifying from
\nwhere they obtained their information.<\/p>\n
\u201cEach of us as a member is responsible
\nfor ensuring that the reports we produce
\nare compliant,\u201d says Brewer. \u201cTh ere is an
\nassumption that the residential appraisal
\nform itself complies with these Standards.
\nNow we have added a lot more content
\nthat, at least from an investigative,
\ncompliance, and liability point of view,
\nprovides some assurance.\u201d <\/p>\n
He notes that another addition has
\nbeen a clause placing the onus back on
\nlenders to perform the due diligence
\nfor which they are responsible. Clause
\n16 reads: \u201cWhere the intended use of
\nthis report is for fi nancing or mortgage
\nlending, and in accordance with the
\nOffi ce of the Superintendent of Financial
\nInstitutions Canada (OSFI) Residential
\nMortgage Underwriting Practices and
\nProcedures B-20 (June 2012), it is the
\nintended user\u2019s responsibility to grant
\nmortgage loans on the basis of the
\nborrower\u2019s demonstrated willingness
\nand capacity to service his\/her debt
\nobligations.\u201d Th e input from all of the
\npreviously mentioned stakeholders
\naffi rms the design and primary use of the
\nform as a critical part of the mortgage\/
\nunderwriting process for the lending
\ninstitutions in Canada. Th erefore, the
\nform is primarily to be used for fi nancing
\nand may not necessarily be appropriate
\nfor other intended uses.<\/p>\n
Doucette and Brewer also changed
\nthe organization and format of the
\ndocument. Soon to be available from
\nthe three major software providers in <\/p>\n
fEATurE ArTICLE<\/p>\n
Canada, the new residential appraisal
\nform prints on letter-sized rather than
\nlegal-sized paper. Also, the section for the
\ncost approach \u2013 which was a 4\u201dX4\u201d square
\non the old form \u2013 has now been removed
\nfrom the body of the report and made into
\nan addendum. <\/p>\n
\u201cTh at is a huge step forward,\u201d notes
\nDoucette. \u201cIn a lot of cases, when
\nappraising a residential property, the
\ncost approach is not applicable.\u201d Because
\nestimating depreciation is so subjective,
\nthis approach can be fraught with peril
\nfor the appraiser. Often, the land value
\nis guessed rather than supported. Th e
\naddendum provides plenty of room for the
\nappraiser to write a detailed explanation in
\ncases when the cost approach is appropriate
\nto use. A second addendum provides ample
\nspace for those using the income approach.
\nAs requested by the Form Sub-Committee
\nof the Standards Committee, Doucette and
\nBrewer also added a Progress Inspection
\nReport for new construction.<\/p>\n
\u201cThe intent was also to increase
\ncompliance to AIC rules and, hopefully, <\/p>\n
reduce claims and liabilities.\u201d<\/p>\n
Dan BREWER<\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 13<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
\u201cBanks rely on us to be their eyes
\nand ears and to supply them with
\ninformation,\u201d explains Doucette. \u201cWith
\nthe new form, there is an addendum for
\nevery diff erent circumstance. I am pretty
\nexcited about that.\u201d<\/p>\n
He admits that residential property
\nappraisal is his passion. After stints as
\na carpenter, bookkeeper, tree planter,
\nlogger, and forestry engineer \u2013 among
\nother jobs \u2013 Doucette worked as a real
\nestate agent for fi ve years before starting
\na career in valuation. \u201cAn appraiser in
\nour offi ce was desperate for help, so
\nI came forward,\u201d he recalls. \u201cHe saw
\nsomething in me that would make a good
\nappraiser.\u201d <\/p>\n
Th at was in 1991. For a while, he
\nworked both jobs, but the juggling soon
\nbecame too diffi cult. As soon as he was
\nable to perform valuations on his own,
\nhe started appraising full-time. Doucette
\nfocused on residential appraisals until the
\nwork started to diminish. After earning
\nhis AACI designation in 2003, he
\nconcentrated exclusively on commercial
\nappraising until his partner (a CRA)
\nretired in 2008. <\/p>\n
Now, he is back to his fi rst love, work-
\ning as a residential appraiser for PCAG
\nProperty Advisors Inc. \u201cTh at is where
\nmy heart is,\u201d confi rms Doucette, who
\nalso works as a beta tester for Alamode
\nInc.\u2019s WinTotal appraisal software. \u201cI like
\ngetting out and meeting people. I also
\nenjoy getting to work with technology
\nand software systems. Th at is where I am
\nmost happy.\u201d<\/p>\n
Good thing that is the case, because
\nDoucette is not fi nished working on the
\nAIC forms quite yet. Th e Institute has
\nnow asked that he and Brewer update the
\ndrive-by form.<\/p>\n
Along with this next update, Brewer
\nwill also be devoting some time to
\ncompleting a guide to the new residential
\nappraisal form, a project on which he has <\/p>\n
been working throughout the revision
\nprocess. \u201cTh ere is some teaching that has
\nto go along with the launch of this new
\nform,\u201d he says, adding that the guide will
\nalso help lenders better understand what
\nappraisers do.<\/p>\n
At the same time, his mandate on
\nthe Forms Sub-Committee has been
\nextended to include a review of the
\nrelocation industries form. So his work
\nas a volunteer is far from over. But that
\nis the way he has always liked it. During
\nhis 35-year career as a fee appraiser, he
\nhas been an active volunteer with the
\nAIC. <\/p>\n
\u201cAppraising has been my passion,\u201d
\nsays Brewer. \u201cTh e consulting side of the
\nbusiness has always been very dear to
\nme. Th ere is probably no appraisal I have
\nnot looked at or no type of property I
\nhave not done.\u201d<\/p>\n
He continues to be involved in a
\nvariety of assignments, from islands
\nto plazas, from cash fl ow analyses to
\nexpropriations, litigations and mortgage
\nwork. As one of four appraisers with
\nAppraisers Canada Inc., he works out
\nof two offi ces \u2013 in Richmond Hill and
\nBarrie. His assignments also take him
\nall across Southern Ontario. Over the
\npast few years, he has earned his Reserve
\nFund and Personal Property Appraisal
\naccreditations.<\/p>\n
His daughter recently followed in
\nhis footsteps, graduating from Seneca
\nCollege with a certifi cate in real estate
\nadministration. She is one of four adult
\nchildren and three grandchildren with
\nwhom Brewer enjoys spending time
\nwhen he is not working or volunteering
\nin the profession he holds so dear. Th e
\nmany hours he puts in are not a sacrifi ce,
\nbut a labour of love. \u201cI have not stopped
\nvolunteering for over 20 years,\u201d he says,
\nadding that he has no plans for stopping
\nin the near future. \u201cI still get up each
\nand every day loving what I do.\u201d <\/p>\n
Core changes
\nto the new form
\n1. the new form requires a <\/p>\n
more precise specifi cation
\nof purpose in the section
\ndedicated to the intended use
\nof the report.<\/p>\n
2. in keeping with privacy
\nlegislation on how information
\ncan and cannot be shared, new
\nwording in the form makes
\nit clear that if an appraiser
\nprovides a report to anyone
\nother than the intended
\nuser or client, all third party
\ninformation must be redacted.<\/p>\n
3. to ensure compliance with
\nCuSPAP standards, the
\nnew form requests specifi c
\ninformation to ensure
\nappraisers are identifying the
\nsource of their information.<\/p>\n
4. A clause has been added to
\nthe form that places the onus
\non lenders to perform the due
\ndiligence for which they are
\nresponsible.<\/p>\n
5. the new form makes it clear
\nthat it is primarily to be used
\nfor fi nancing and may not
\nnecessarily be appropriate for
\nother intended uses.<\/p>\n
6. for ease of use, the new form
\nnow prints on letter-sized
\nrather than legal-sized paper.<\/p>\n
7. the section for the cost
\napproach has been removed
\nfrom the body of the report
\nand made into an addendum
\nthat provides suffi cient room
\nto write a detailed explanation.
\nA second addendum does
\nlikewise for appraisers using
\nthe income approach.<\/p>\n
8. A progress inspection
\nreport has been added for
\nnew construction.<\/p>\n
fEATurE ArTICLE<\/p>\n
\u201cIt is important that appraisers protect themselves from
\nhaving potential second, third and fourth mortgages <\/p>\n
registered on the property at their expense.\u201d<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201314<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
E n 2010, lorsque le Comit\u00e9 ex\u00e9cutif de l\u2019Institut canadien des \u00e9valuateurs (ICE) a contact\u00e9 le pr\u00e9sident du sous-comit\u00e9 des
\nformulaires, Dan Brewer, AACI, P. App.,
\npour discuter la r\u00e9vision du formulaire
\nd\u2019\u00e9valuation r\u00e9sidentielle, il savait
\nexactement \u00e0 qui s\u2019adresser. De 2001 \u00e0
\n2004, Garry Doucette, AACI, P. App.,
\nn\u2019avait pas compt\u00e9 les heures pour cr\u00e9er la
\npremi\u00e8re version \u00e9lectronique normalis\u00e9e
\ndu formulaire \u00e0 \u00eatre utilis\u00e9e par l\u2019Institut
\n(formulaire complet 04\/04).<\/p>\n
\u00ab Mais aujourd\u2019hui, nos normes de
\npratique professionnelle et l\u2019environnement
\ndans lequel \u00e9voluent nos membres ont
\nchang\u00e9, d\u2019expliquer Brewer, et le formulaire
\nse devait de refl \u00e9ter ces changements .\u00bb<\/p>\n
Certains changements faisaient suite \u00e0
\nla nouvelle ligne directrice sur la tarifi ca-
\ntion r\u00e9sidentielle \u00e9mise par le Bureau du
\nsurintendant des institutions fi nanci\u00e8res
\nCanada (BSIF) en juin 2012 ainsi qu\u2019\u00e0 la
\nderni\u00e8re \u00e9dition des Normes uniformes
\nde pratique professionnelle en mati\u00e8re
\nd\u2019\u00e9valuation au Canada (NUPPEC) de
\nl\u2019ICE, alors que d\u2019autres r\u00e9sultaient de la
\nLoi sur la protection des renseignements
\npersonnels et les documents \u00e9lectroniques
\n(LPRPDE) en tant que moyen d\u2019am\u00e9liorer
\nla pratique de l\u2019\u00e9valuation dans son
\nensemble.<\/p>\n
\u00ab Nous voulions aussi rehausser la
\nconformit\u00e9 aux r\u00e8gles de l\u2019ICE, en esp\u00e9rant
\nr\u00e9duire le nombre de plaintes, de r\u00e9clama-
\ntions et de responsabilit\u00e9s \u00bb, note Brewer,
\nun directeur du Conseil national qui a si\u00e9g\u00e9
\n\u00e0 titre b\u00e9n\u00e9vole au sous-comit\u00e9 national
\nd\u2019enqu\u00eate et qui travaille dans le domaine
\ndu contentieux pour les fi ns d\u2019assurance
\nresponsabilit\u00e9 professionnelle.<\/p>\n
Par exemple, dans la section visant
\nl\u2019utilisation pr\u00e9vue du rapport, indiquer
\n\u2039fi nancement d\u2019hypoth\u00e8que \u203a ou
\nseulement \u2039 fi nancement \u203a est consid\u00e9r\u00e9
\ncomme insuffi sant en raison du risque
\nque cela pose. Mais jusqu\u2019\u00e0 pr\u00e9sent,
\nc\u2019est ce que l\u2019on a parfois saisi. Afi n de
\nrestreindre l\u2019utilisation et l\u2019intention du
\nrapport \u2013 r\u00e9duisant ainsi la responsabilit\u00e9 <\/p>\n
CHaMPIOnS DU nOUVEaU
\nformulaire d\u2019\u00e9valuation r\u00e9sidentielle<\/p>\n
P A R C H R I S T I N E H A N L O N<\/p>\n
et l\u2019exposition aux risques, le formulaire
\ndevait exiger une utilisation plus pr\u00e9cise,
\ncomme la mention \u2039fi nancement
\nd\u2019hypoth\u00e8que de premier rang
\nconventionnelle \u203a.<\/p>\n
\u00ab Il est important que les \u00e9valuateurs
\nse prot\u00e8gent contre les hypoth\u00e8ques de
\nsecond, troisi\u00e8me et quatri\u00e8me rangs qui
\npourraient \u00eatre enregistr\u00e9es sur la propri\u00e9t\u00e9
\n\u00e0 leur d\u00e9pens \u00bb, pr\u00e9vient Brewer.<\/p>\n
Pour inciter les \u00e9valuateurs \u00e0 \u00eatre plus
\nsp\u00e9cifi ques, il fallait modifi er le formulaire.
\nDe telles modifi cations demandaient une
\nexpertise technique. C\u2019est l\u00e0 que Garry
\nDoucette est entr\u00e9 en jeu. De 2001 \u00e0 2004,
\nle p\u00e8re de deux enfants avait consacr\u00e9 des
\ncentaines d\u2019heures \u00e0 la mise en ligne du
\nformulaire, en travaillant \u00e0 temps plein
\ncomme \u00e9valuateur \u00e0 Port Alberni et en
\ncompl\u00e9tant les exigences de son titre AACI.
\nLe temps venu d\u2019apporter les modifi ca-
\ntions, Doucette n\u2019allait pas rater l\u2019occasion.<\/p>\n
M\u00eame si Brewer travaillait dans le sud
\nde l\u2019Ontario, \u00e0 un demi-continent de
\nson partenaire, ils ont collabor\u00e9 au projet
\npendant deux ans, ce qui a culmin\u00e9 par
\nun formulaire d\u2019\u00e9valuation r\u00e9vis\u00e9 pr\u00eat \u00e0
\n\u00eatre inaugur\u00e9 au d\u00e9but de 2013. Le duo a
\nfi x\u00e9 un processus comprenant des activit\u00e9s
\nr\u00e9guli\u00e8res de communication par courriel
\net par t\u00e9l\u00e9phone, de recherche et de mise
\nen \u0153uvre.<\/p>\n
\u00ab Les banques comptent sur nous pour voir et
\nentendre ce qui se passe et les en informer…
\nle nouveau formulaire comporte un addenda <\/p>\n
pour toutes les situations possibles. \u00bb<\/p>\n
GaRRY DOUCETTE<\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 15<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
ArTICLE vEDETTE<\/p>\n
Dan BREWER<\/p>\n
\u00ab nous voulions aussi rehausser la conformit\u00e9 aux
\nr\u00e8gles de l\u2019ICE, en esp\u00e9rant r\u00e9duire le nombre de
\nplaintes, de r\u00e9clamations et de responsabilit\u00e9s \u00bb<\/p>\n
S\u2019inspirant beaucoup de ce que
\nDoucette avait fait pour d\u00e9velopper le
\npremier formulaire en ligne, les deux
\nhommes ont commenc\u00e9 par mener des
\nconsultations exhaustives aupr\u00e8s des
\nmembres et des intervenants, incluant les
\nbanques \u00e0 charte, les caisses populaires, le
\nsecteur de l\u2019assurance hypoth\u00e8que, dont la
\nSoci\u00e9t\u00e9 canadienne d\u2019hypoth\u00e8ques et de
\nlogement et l\u2019Agence du revenu du Canada.
\nUne lettre a \u00e9t\u00e9 envoy\u00e9e \u00e0 l\u2019Association des
\nbanquiers canadiens pour les informer de
\nla mise \u00e0 jour prochaine du formulaire et
\npour leur demander des suggestions. Sa
\nr\u00e9troaction a \u00e9t\u00e9 utile et une partie s\u2019est
\nretrouv\u00e9e dans le nouveau formulaire. <\/p>\n
\u00ab Gr\u00e2ce \u00e0 tout le travail accompli
\njusqu\u2019en 2004, le processus de consulta-
\ntion n\u2019a pas \u00e9t\u00e9 aussi long cette fois,
\nremarque Doucette. Nous proposions une
\nmodifi cation et en discutions, j\u2019apportais
\nla modifi cation et l\u2019envoyait \u00e0 Dan. Puis,
\nquand nous avions une \u00e9bauche, nous la
\nfaisions circuler et r\u00e9coltions les r\u00e9actions. \u00bb<\/p>\n
Pendant ce temps, Brewer r\u00e9digeait
\nle nouveau texte refl \u00e9tant la LPRPDE
\n(encapsul\u00e9 dans la premi\u00e8re clause du nou-
\nveau formulaire). Les lois sur la protection
\nde la vie priv\u00e9e sont tr\u00e8s claires sur la
\nmani\u00e8re dont les renseignements peuvent
\nou non \u00eatre partag\u00e9s. Si un \u00e9valuateur
\nfournit un rapport \u00e0 toute autre personne
\nque l\u2019utilisateur ou le client pr\u00e9vu, tous
\nles renseignements de tiers doivent en \u00eatre
\nsupprim\u00e9s. La non-conformit\u00e9 n\u2019est pas
\nune option, selon Brewer.<\/p>\n
La nouvelle clause prot\u00e8ge non
\nseulement les droits des clients, mais
\n\u00e9galement ceux des \u00e9valuateurs.
\n\u00ab Certaines organisations ont supprim\u00e9
\ndes donn\u00e9es dans les rapports
\nd\u2019\u00e9valuation, ce qui n\u2019est pas permis selon
\nles fournisseurs de services auxquels nous
\nsouscrivons \u00bb, explique Brewer.<\/p>\n
D\u2019autres importantes modifi cations
\nconsistaient \u00e0 s\u2019assurer que le formulaire
\nest conforme aux NUPPEC 2012. Par
\nexemple, le nouveau formulaire demande
\naussi des renseignements sp\u00e9cifi ques,
\ncomme la source des donn\u00e9es, pour faire
\nen sorte que les \u00e9valuateurs pr\u00e9cisent o\u00f9 ils
\nont obtenu leurs renseignements.<\/p>\n
\u00ab Chacun de nous en tant que membre
\na la responsabilit\u00e9 de s\u2019assurer que les
\nrapports que nous produisons sont
\nconformes, note Brewer. On pr\u00e9sume que
\nle formulaire d\u2019\u00e9valuation r\u00e9sidentielle
\nrespecte lui-m\u00eame ces Normes. Nous
\navons maintenant ajout\u00e9 beaucoup plus de
\ncontenu qui, du moins pour ce qui touche
\nles enqu\u00eates, la conformit\u00e9 et la respon-
\nsabilit\u00e9, donne une certaine assurance. \u00bb<\/p>\n
Il fait remarquer qu\u2019un nouvel \u00e9l\u00e9ment
\nest la clause rappelant aux pr\u00eateurs que
\nc\u2019est \u00e0 eux qu\u2019il incombe d\u2019exercer la dili-
\ngence raisonnable. La clause 16 se lit ainsi :
\n\u00ab Quand l\u2019utilisation pr\u00e9vue de ce rapport
\nest le fi nancement ou le pr\u00eat hypoth\u00e9caire,
\net en conformit\u00e9 avec la Ligne directrice
\nB-20 du Bureau du surintendant des
\ninstitutions fi nanci\u00e8res Canada (BSIF) :
\nPratiques et proc\u00e9dures de souscription
\nde pr\u00eats hypoth\u00e9caires r\u00e9sidentiels (juin
\n2012), l\u2019utilisateur pr\u00e9vu est responsable
\nd\u2019accorder les pr\u00eats hypoth\u00e9caires en
\nfonction de la volont\u00e9 manifeste et de la
\ncapacit\u00e9 de l\u2019emprunteur d\u2019acquitter ses
\ndettes. \u00bb [traduction libre] La contribution
\ndes tous les intervenants d\u00e9j\u00e0 mentionn\u00e9s
\nconfi rme le but et l\u2019utilisation principale
\ndu formulaire comme partie critique du
\nprocessus d\u2019hypoth\u00e8que\/tarifi cation pour
\nles \u00e9tablissements de cr\u00e9dit au Canada. Le
\nformulaire doit donc principalement servir
\nau fi nancement et n\u2019est pas n\u00e9cessairement
\nappropri\u00e9 \u00e0 d\u2019autres fi ns pr\u00e9vues.<\/p>\n
Doucette et Brewer ont en outre
\nmodifi \u00e9 l\u2019organisation et le format du <\/p>\n
document. Bient\u00f4t disponible chez les
\ntrois principaux fournisseurs de logiciels
\ndu Canada, le nouveau formulaire
\nd\u2019\u00e9valuation r\u00e9sidentielle s\u2019imprime sur du
\npapier format lettre plut\u00f4t que du papier
\nformat l\u00e9gal. De plus, la section sur la
\nm\u00e9thode du co\u00fbt (un carr\u00e9 de 4 po x 4
\npo dans l\u2019ancien formulaire) n\u2019appara\u00eet
\nplus dans le corps du rapport, mais a \u00e9t\u00e9
\ntransform\u00e9e en addenda de format lettre.<\/p>\n
\u00ab C\u2019est un grand pas en avant, se r\u00e9jouit
\nDoucette. Il arrive fr\u00e9quemment que la
\nm\u00e9thode du co\u00fbt ne s\u2019applique pas dans
\nl\u2019\u00e9valuation d\u2019un immeuble r\u00e9sidentiel. \u00bb
\nComme il est tellement subjectif d\u2019estimer
\nla d\u00e9pr\u00e9ciation, cette m\u00e9thode peut \u00eatre
\ntr\u00e8s p\u00e9rilleuse pour l\u2019\u00e9valuateur. Souvent
\nla valeur d\u2019un terrain est devin\u00e9e plut\u00f4t
\nque fond\u00e9e. L\u2019addenda donne beaucoup
\nd\u2019espace \u00e0 l\u2019\u00e9valuateur pour expliquer
\nen d\u00e9tail les cas o\u00f9 il est appropri\u00e9
\nd\u2019employer la m\u00e9thode du co\u00fbt. Un
\ndeuxi\u00e8me addenda fournit assez d\u2019espace
\n\u00e0 l\u2019\u00e9valuateur qui pr\u00e9f\u00e8re la m\u00e9thode du
\nrevenu. Pour r\u00e9pondre \u00e0 la demande du
\nsous-comit\u00e9 des formulaires du Comit\u00e9
\ndes normes, Doucette et Brewer ont
\naussi ajout\u00e9 un Rapport d\u2019inspection
\nde l\u2019avancement des travaux pour les
\nnouvelles constructions.<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201316<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
ArTICLE vEDETTE<\/p>\n
Principales modifi cations
\nau nouveau formulaire<\/p>\n
1. Le nouveau formulaire requiert
\nune sp\u00e9cifi cation plus pr\u00e9cise sur
\nl\u2019utilisation pr\u00e9vue du rapport.<\/p>\n
2. Conform\u00e9ment aux lois sur
\nla protection de la vie priv\u00e9e
\nquant \u00e0 la mani\u00e8re dont les
\nrenseignements peuvent ou non
\n\u00eatre partag\u00e9s, le nouveau libell\u00e9
\ndu formulaire indique clairement
\nque si un \u00e9valuateur fournit un
\nrapport \u00e0 toute autre personne que
\nl\u2019utilisateur ou le client pr\u00e9vu, tous
\nles renseignements de tiers doivent
\nen \u00eatre supprim\u00e9s.<\/p>\n
3. Pour assurer la conformit\u00e9 aux
\nnuPPEC, le nouveau formulaire
\ndemande des renseignements
\nsp\u00e9cifi ques faisant en sorte que
\nles \u00e9valuateurs pr\u00e9cisent o\u00f9 ils ont
\nobtenu leurs renseignements.<\/p>\n
4. une clause a \u00e9t\u00e9 ajout\u00e9e pour
\nrappeler aux pr\u00eateurs que c\u2019est
\n\u00e0 eux qu\u2019il incombe d\u2019exercer la
\ndiligence raisonnable.<\/p>\n
5. Le nouveau formulaire indique
\nclairement qu\u2019il doit principalement
\nservir au fi nancement et qu\u2019il n\u2019est
\npas n\u00e9cessairement appropri\u00e9 \u00e0
\nd\u2019autres fi ns pr\u00e9vues.<\/p>\n
6. Pour plus de commodit\u00e9, le
\nnouveau formulaire s\u2019imprime
\nmaintenant sur du papier format
\nlettre plut\u00f4t que du papier format
\nl\u00e9gal.<\/p>\n
7. La section sur la m\u00e9thode du co\u00fbt
\nn\u2019appara\u00eet plus dans le corps du
\nrapport, mais a \u00e9t\u00e9 transform\u00e9e en
\naddenda de format lettre contenant
\nassez d\u2019espace pour \u00e9crire une
\nexplication d\u00e9taill\u00e9e. un deuxi\u00e8me
\naddenda sert la m\u00eame fonction
\npour les \u00e9valuateurs qui pr\u00e9f\u00e8rent
\nla m\u00e9thode du revenu.<\/p>\n
8. un Rapport d\u2019inspection de
\nl\u2019avancement des travaux a
\n\u00e9t\u00e9 ajout\u00e9 pour les nouvelles
\nconstructions. <\/p>\n
\u00ab Les banques comptent sur nous pour
\nvoir et entendre ce qui se passe et les en
\ninformer, poursuit Doucette. Le nouveau
\nformulaire comporte un addenda pour
\ntoutes les situations possibles, ce que je
\ntrouve formidable ! \u00bb<\/p>\n
Il avoue que l\u2019\u00e9valuation des immeubles
\nr\u00e9sidentiels est sa passion. Apr\u00e8s avoir \u00e9t\u00e9
\ncharpentier, commis comptable, planteur
\nd\u2019arbres, b\u00fbcheron et ing\u00e9nieur forestier,
\nentre autres emplois, Doucette a travaill\u00e9
\ncomme agent immobilier durant cinq ans
\navant de d\u00e9buter sa carri\u00e8re en \u00e9valuation.
\n\u00ab Un jour, un \u00e9valuateur du bureau avait
\nd\u00e9sesp\u00e9r\u00e9ment besoin d\u2019aide, que j\u2019ai
\npropos\u00e9 de lui apporter, se rappelle-t-il.
\nCet homme a vu que je poss\u00e9dais
\nquelque chose qui ferait de moi un bon
\n\u00e9valuateur. \u00bb<\/p>\n
C\u2019\u00e9tait en 1991. Il a exerc\u00e9 les deux
\nemplois pendant un certain temps,
\nmais jongler avec ceux-ci est vite devenu
\ntrop diffi cile. Aussit\u00f4t qu\u2019il a pu r\u00e9aliser
\ndes \u00e9valuations de fa\u00e7on autonome, il
\na commenc\u00e9 \u00e0 le faire \u00e0 plein temps.
\nDoucette s\u2019est concentr\u00e9 sur l\u2019\u00e9valuation
\nr\u00e9sidentielle jusqu\u2019\u00e0 ce que ce travail
\ncommence \u00e0 diminuer. Apr\u00e8s avoir
\nd\u00e9croch\u00e9 son titre AACI en 2003, il s\u2019est
\nconsacr\u00e9 exclusivement \u00e0 l\u2019\u00e9valuation
\ncommerciale jusqu\u2019\u00e0 ce que son partenaire
\n(un CRA) prenne sa retraite en 2008.<\/p>\n
Maintenant revenu \u00e0 ses premi\u00e8res
\namours, il est \u00e9valuateur r\u00e9sidentiel pour
\nla compagnie PCAG Property Advisors
\nInc. \u00ab C\u2019est l\u00e0 qu\u2019est mon c\u0153ur \u00bb, confi rme
\nDoucette, qui est \u00e9galement testeur b\u00eata
\npour le logiciel d\u2019\u00e9valuation WinTotal
\nde la compagnie Alamode Inc. \u00ab J\u2019aime
\naller rencontrer des gens, en plus de
\ntravailler avec la technologie et les syst\u00e8mes
\ninformatiques. C\u2019est ce qui me rend le plus
\nheureux. \u00bb<\/p>\n
Bonne chose, puisque Doucette n\u2019en
\nn\u2019a pas encore fi ni avec les formulaires de
\nl\u2019ICE. L\u2019Institut a maintenant demand\u00e9 \u00e0
\nBrewer et lui de mettre \u00e0 jour le formulaire
\nd\u2019inspection sommaire.<\/p>\n
Avec cette prochaine mise \u00e0 jour,
\nBrewer consacrera aussi du temps \u00e0
\ncompl\u00e9ter un guide pour le nouveau <\/p>\n
formulaire d\u2019\u00e9valuation r\u00e9sidentielle, un
\nprojet dont il s\u2019est occup\u00e9 durant tout le
\nprocessus de r\u00e9vision. \u00ab Il faudra faire
\nun peu d\u2019enseignement en inaugurant ce
\nnouveau formulaire \u00bb, dit-il, ajoutant que
\nle guide permettra en outre aux pr\u00eateurs
\nde mieux comprendre ce que font les
\n\u00e9valuateurs.<\/p>\n
En m\u00eame temps, son mandat au
\nsous-comit\u00e9 des formulaires a \u00e9t\u00e9 \u00e9largi
\npour inclure la r\u00e9vision du formulaire de
\nl\u2019industrie de la r\u00e9installation. Son \u0153uvre
\nb\u00e9n\u00e9vole est donc loin d\u2019\u00eatre achev\u00e9e.
\nMais c\u2019est ainsi qu\u2019il a toujours aim\u00e9 faire
\nles choses. Durant ses 35 ans de carri\u00e8re \u00e0
\ntitre d\u2019\u00e9valuateur \u00e0 honoraires, il a \u00e9t\u00e9 un
\nb\u00e9n\u00e9vole actif \u00e0 l\u2019ICE.<\/p>\n
\u00ab L\u2019\u00e9valuation me passionne depuis
\nlongtemps, confi e Brewer. Le c\u00f4t\u00e9 consulta-
\ntion du domaine m\u2019a toujours \u00e9t\u00e9 tr\u00e8s cher.
\nIl n\u2019y a probablement aucune \u00e9valuation
\nque je n\u2019ai pas examin\u00e9e ou aucun type de
\npropri\u00e9t\u00e9 que je n\u2019ai pas \u00e9valu\u00e9. \u00bb<\/p>\n
Il s\u2019implique encore dans une vari\u00e9t\u00e9
\nd\u2019aff ectations, allant des \u00eeles aux centres
\ncommerciaux, en passant par les analyse du
\nfl ux d\u2019encaisse, les expropriations, les litiges
\net le travail touchant les hypoth\u00e8ques. L\u2019un
\ndes quatre \u00e9valuateurs chez Appraisers
\nCanada Inc., il a deux bureaux, un \u00e0
\nRichmond Hill et l\u2019autre \u00e0 Barrie. Ses
\naff ectations le font aussi voyager dans
\ntout le sud de l\u2019Ontario. Depuis quelques
\nann\u00e9es, il a obtenu ses titres Reserve Fund
\net Personal Property Appraisal.<\/p>\n
Sa fi lle a r\u00e9cemment commenc\u00e9 \u00e0 suivre
\nses traces, terminant ses \u00e9tudes au Coll\u00e8ge
\nSeneca avec un certifi cat en administration
\ndes biens immobiliers. Elle est l\u2019un des
\nquatre enfants adultes et trois petits-
\nenfants avec qui Brewer aime beaucoup
\npasser du temps quand il ne travaille
\npas ou ne fait pas de b\u00e9n\u00e9volat dans la
\nprofession qu\u2019il aff ectionne tant. Le grand
\nnombre d\u2019heures qu\u2019il donne n\u2019est pas
\nun sacrifi ce, mais un acte d\u2019amour. \u00ab Je
\nn\u2019ai pas arr\u00eat\u00e9 de travailler b\u00e9n\u00e9volement
\ndepuis 20 ans \u00bb, dit il, ajoutant qu\u2019il n\u2019a
\npas l\u2019intention de le faire dans le futur
\nimm\u00e9diat. \u00ab Je me l\u00e8ve encore chaque
\nmatin en adorant ce que je fais. \u00bb <\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 17<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
THE aPPLICaTIOn OF MULTIVaRIaTE
\nREGRESSIOn anaLYSIS
\nIn ExPROPRIaTIOn MaTTERS
\nBy George Canning, aaCI, P.app, Canning Consultants Inc., London, On<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201318<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
i njurious aff ection can be the most diffi cult form of land compensation to prove before any court of law. Th e claim for compensation is a
\nright under the law, but that does not
\nmean entitlement. In many cases,
\ncompensation is not quantifi able because
\nof the insuffi cient quantities of data, the
\ncomplexities of data analysis and the
\nunfamiliarity with advanced methods
\nneeded to allow the data to \u2018speak.\u2019 In
\nthese cases, the right to compensation
\nmay conclude as \u2018diffi cult to prove\u2019 or \u2018not
\nenough data\u2019 and, subsequently, be fi led in
\nthe \u2018still wondering\u2019 cosmos of fragmented
\nexploratory data analysis.<\/p>\n
Th is article delves into the principle
\nuse of multivariate regression analysis
\nas it relates to land compensation issues
\nand a brief introduction about another
\nform of data analysis when data tends
\nto be \u2018thin.\u2019 It is intended to aid real
\nestate practitioners wanting to use more
\nadvanced methods of data analysis in
\nsolving injurious aff ection claims. Th is
\nis not a statement that the use of these
\ntools will guarantee the claimant\u2019s right
\nto compensation, but they will give the
\nreal estate expert a more detailed look at
\nthe data when the paired sales method
\nprovides no useful conclusions.<\/p>\n
Land compensation claims for
\nsuch injurious aff ection issues as loss
\nof parking, reduction in front yard
\nsetbacks, increased traffi c fl ow, loss
\nof view, subsurface rights and even
\napplication of the traditional \u2018before\u2019 and
\n\u2018after\u2019 method are real estate problems
\nthat can be handled by using multiple
\nregression analysis.<\/p>\n
the problems of data analysis
\nData is found in the marketplace and
\nit tends to have irregular patterns of
\nbehaviour. What you think the data is
\ntrying to say and what is really occurring
\nare often two separate issues. Without
\nproper real estate data analysis, the answer
\nto an injurious aff ection claim maybe
\nburied beneath a pile of raw property
\nattributes. In order to \u2018clear the clutter,\u2019 <\/p>\n
a multiple regression analysis \u2018run\u2019 may
\ninform the real estate practitioner the true
\nbasis for the claim and the appropriate
\namount of settlement. Conversely, the
\nclaiming of \u2018loss\u2019 may not be present and
\nbecomes quite apparent through more
\n\u2018robust\u2019 testing of the sales data.<\/p>\n
Th e problem with real estate data
\nstems from the fact it is unstructured and
\nis both found in a numeric and a non-
\nnumeric format. However, the underlying
\nfunction of real estate data analysis is
\nto reduce uncertainty. Th e more certain
\nthat your real estate data is behaving in
\na particular way, the better the decisions
\nregarding its value, or the particular
\neff ect a property variable is having on
\nexplaining injurious aff ection loss.<\/p>\n
Regression analysis is not perfect, but
\nit has strong attributes that make this a
\ndesirable option regarding substantiating
\ninjurious aff ection claims or their denial. <\/p>\n
First, it helps one to organize the
\ndata and allows for the exploration
\nof the most rudimentary form of data
\nanalysis: graphing. Th e following
\nis a good example of using graphs to
\nhelp describe data. However, caution is
\nrequired since visual presentations can be
\nmisleading. <\/p>\n
little diff erence in price. Here are some
\ncautionary notes. Numeric data analysis
\nshould go hand in hand with a visual
\npresentation of the data. An arguable
\npoint is the reverse of that statement. Th e
\nuse of an average price from a grouping of
\ndata only without the graph is dangerous.
\nSeeing the shape of the data might suggest
\nthat average is not a meaningful number
\nand the more appropriate expression
\nwould be the median or mode. Th at is why
\nno appraiser should rely on \u2018the average
\nyearly price of houses sold\u2019 from any MLS
\nsystem, for example. Th e average number
\ngiven is just a number. <\/p>\n
Th is number becomes more relevant
\nwhen the boundaries of the average
\nprice and the attributes that cause these
\ndiff erences to occur are known. It is like
\nsaying \u201call land is the same because it is
\njust dirt.\u201d<\/p>\n
Second, it can be used to explore
\nthe relationship between variables. As
\nappraisers, we sometimes think certain
\nvariables are the ones that drive various
\ntypes of real estate property prices. By
\nsimply exploring your data through a
\nregression program, you may fi nd the
\nopposite to be quite true. Income is not
\nalways the driving force behind \u2018income
\nproducing properties,\u2019 for example.
\nSometimes, data attributes can interact
\nwith one another and result in displays
\nof property characteristics never possibly
\nimaged. However, similar property
\nattributes can throw the data picture off
\nbecause one is trying to dominate the
\nother.<\/p>\n
Th ird, the most striking feature
\nof multiple regression analysis is its
\nability to hold constant all variables
\nwhile it explores each single variable
\nindependently.<\/p>\n
Although the regression analysis
\nformula can be expressed in several
\ndiff erent ways, its basic function has
\nnot changed since it was invented by Sir
\nFrancis Galton in 1820.<\/p>\n
Y= AX + B
\nHere, the above equation can be modifi ed
\nto add countless variables as follows.<\/p>\n
Th e red lines in the above box plot are
\nthe average selling price of two sets of
\ndata. One is land that is aff ected by a
\ncontaminant and the second is without.
\nTh e observation is that land aff ected sold
\nfor approximately $187,000, while the
\nnon-aff ected land sold for $205,000. After
\napplying all the property attributes to the
\ndate set, it was concluded that there was <\/p>\n
boxplot of sale price by
\nAffected Area<\/p>\n
affected area =1 affected area =0<\/p>\n
270000<\/p>\n
250000<\/p>\n
230000<\/p>\n
210000<\/p>\n
190000<\/p>\n
170000<\/p>\n
150000<\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 19<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
Y=a+b1*X1 +b2*X2 +…
\nTh e b1*X1 could represent house size,
\nwhile the b2*X2 could represent house
\nage. It can go to infi nity and the number
\nof variables used in the equation is directly
\nrelated to the amount of data. Th at is what
\nmakes regression analysis such a powerful
\ndata tool. As the model assigns a coeffi cient
\nor number to each variable, it holds all
\nothers still. It would be the equivalent of
\nfreezing fi ve house sales and the appraiser
\nwalking in each house and observing a
\nplaque card for each property attribute
\nwith its value written upon it.<\/p>\n
Below is a case dealing with the \u2018taking\u2019
\nof a road widening. In this expropriation
\nmatter, there were two injurious aff ection
\npossibilities or potential claims: (1) a loss
\nin value because of a decrease front yard
\nsetback, and (2) a loss in value as a result of
\nincreased traffi c fl ow. Th e following graphs
\ndenote a distinct pattern to these claims.<\/p>\n
Th e graph on the left shows the
\nregression line with a negative slope as
\ntraffi c counts increase from left to right.
\nWhile traffi c counts are increasing, sale
\nprice on the \u2018Y\u2019 axis is decreasing. Th e
\ngraph on the right shows the regression line
\nwith a positive slope as setbacks decrease
\nalong the \u2018X\u2019 axis from left to right. Th e
\ncorresponding sale price on the \u2018Y\u2019 axis
\nshows a decrease in value as setbacks
\ndecrease. However, how does the actual
\ndata output match what the graphs are
\neluding to?<\/p>\n
output of the regression run
\nRegression analysis is not about making
\na red line through two sets of data. Th e
\nabove two graphs illustrate the relationship
\nbetween two variables (setbacks and traffi c
\nvolume) against sale price. It would be in
\nerror to draw a line up from traffi c counts
\nand then over to sale price for an indication
\nof loss. Th at is an inaccurate method of
\nanalysis, because the above graphs are only
\ntelling us that there is a strong relationship
\nbetween these two variables and sale
\nprice. Perhaps it is nothing more than a
\nspurious relationship between setbacks and
\ntraffi c volume against sale price. However,
\nthere are a number of other property
\ncharacteristics that need to be included in
\nthe regression analysis that should form
\npart of the \u2018regression run\u2019 that might also
\nexplain these relationships.<\/p>\n
Th e following was the \u2018regression run\u2019
\nof the database, which consisted of 81
\nobservations representing similar (not
\nidentical) properties to that of the subject
\nproperty. <\/p>\n
traffi c counts
\nTh e eff ect of traffi c counts on the data is
\nshown by the coeffi cient -6.729380E-6. Th e
\n\u2018T\u2019 statistic is shown as -4.410. Both of these
\nnumbers are a negative because the increase
\nin traffi c volume is having a negative impact
\non sale price.<\/p>\n
Th e \u2018T\u2019 statistic is simply a measure of
\nsignifi cance. In other words, how confi dent <\/p>\n
is the valuer that the results of the coeffi cient
\n-6.729380E-6 are statistically meaningful
\nand did not appear simply by random
\nchance? As a rule of thumb, a \u2018T\u2019 score
\ngreater than two would indicate that the
\noutcome obtained is not due to random
\nchance. Th is is verifi ed by the p-value –
\n0.000. P values are probabilities and are
\ngenerally set for a 5% level. A number
\nabove 5% would mean that the coeffi cient
\nobtained by the regression model would
\nhave most likely appeared by chance.
\nTh erefore, a p-value below 5.0% would
\nindicate that the coeffi cient was the result of
\nsomething other than chance. Th e p-value of
\n0.000 for the traffi c count coeffi cient is less
\nthan 5.0%<\/p>\n
Th e -6.729380E-6 is in scientifi c
\nnotation and really means that, for every
\nchange in one traffi c count, sale price
\ndecreased by .000006729380 dollars in
\nsale price. If we use 10,000 cars as a base,
\nthis fi gure would change to 0.06729. If
\nwe wanted to convert this latter fi gure to a
\npercentage, this number would be multiplied
\nby 100% as follows: 0.06729 x 100% =
\n6.729% (round to 6.73%). Th is means that,
\nfor every change in 10,000 car traffi c counts,
\nsale price fell by 6.73%. In the case of the
\nsubject property, the traffi c counts prior to
\nthe \u2018taking\u2019 are 23,000 cars per day, which
\nwill increase over time to 33,000 cars. Th is is
\na diff erence of 10,000 cars.<\/p>\n
Th erefore, the value of the subject
\nproperty would be negatively impacted by <\/p>\n
0 1e+04 2e+04 3e+04 4e+04<\/p>\n
TRaFCOUnT<\/p>\n
SP
\nR<\/p>\n
IC
\nE<\/p>\n
1e
\n+0<\/p>\n
5
\n1.<\/p>\n
2e
\n+0<\/p>\n
5.
\n 4<\/p>\n
e+
\n05<\/p>\n
. 6
\ne+<\/p>\n
05
\n 8<\/p>\n
e+
\n05<\/p>\n
2
\ne+<\/p>\n
05<\/p>\n
0 50 100 150<\/p>\n
DISTCURB<\/p>\n
SP
\nR<\/p>\n
IC
\nE<\/p>\n
1e
\n+0<\/p>\n
5
\n1.<\/p>\n
2e
\n+0<\/p>\n
5.
\n 4<\/p>\n
e+
\n05<\/p>\n
. 6
\ne+<\/p>\n
05
\n 8<\/p>\n
e+
\n05<\/p>\n
2
\ne+<\/p>\n
05<\/p>\n
Traffi c setback<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201320<\/p>\n
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\nTAbLE of ConTEnTs<\/p>\n
6.73%. Th ere are two points to consider
\nin the application of the 6.73% to the
\nsubject property. Th e fi rst point is that the
\nincrease in traffi c volumes will not occur
\nimmediately. Th is would mean that, at the
\neff ective date of the appraisal, the 6.73%
\nshould be discounted, since the increased
\ntraffi c count would not occur unit the
\nfuture. Th e valuer has elected to apply the
\nfull eff ect of traffi c counts to the subject
\nproperty, since these future traffi c counts
\nare only estimates. Th e second point is
\nthat the impact of the increase in traffi c
\ncounts, as well as the other infl uencing
\nvariables, would be applied to the subject
\nproperty based upon the \u2018residual\u2019 value
\nof the property (after the value of the land
\n\u2018taken\u2019 and any disturbance damages are
\nsubtracted from the value of the subject
\nproperty \u2018before\u2019 the \u2018taking\u2019).<\/p>\n
Setback
\nTh e variable setback indicated a
\ncoeffi cient of 0.00177144. Th e \u2018T\u2019
\nstatistic is shown as a 2.747. Th e p-value
\nis 0.0077. Th e coeffi cient of 0.00177144
\ncan be expressed as a percentage by
\nmultiplying by 100%. Th erefore,
\nthe eff ect of setbacks on sale price is
\n0.00177144 x 100% = .177144%. Th is
\nmeans that, for every foot of decrease <\/p>\n
in the setback, sale price was impacted
\nby that amount. Th e subject property
\nwill have 33 feet less setback \u2018after\u2019 the
\n\u2018taking.\u2019 Th e percentage impact is 33 feet
\nx .177144% = 5.85%.<\/p>\n
Regression analysis has concluded
\nthat there is supporting market evidence
\nthat the subject property will suff er some
\n\u2018injurious aff ection\u2019 as a result of the
\n\u2018taking.\u2019 Doubt is critical in expropriation
\ncases. Th e Land Compensation Board is
\nvery clear on \u2018doubt.\u2019 In the New Law of
\nExpropriation, on page 10-150, paragraph
\n1.7, it states;<\/p>\n
\u201cIf any doubt exists as to when the fact
\nof injurious aff ection become known to a
\nclaimant, such doubt must be resolved in
\nfavour of the claimant. Where a witness on
\ncross-examination admitted that he felt that
\nsome damage had accrued from the fi rst, the
\nBoard observed that there was no indication
\nas to what was meant by the witness in using
\nthe term \u2018 from the fi rst.\u2019 In the absence of
\ndefi nite evidence as to when the damage was
\nsustained or became known to the claimant,
\nthe claim for injurious aff ection can be
\nallowed.\u201d<\/p>\n
In the above case, the matter was
\nsettled and compensation awarded to the
\nlandowner without going to arbitration or
\nthe OMB.<\/p>\n
what does a multi-variate regression
\ngraph look like?
\nIf one were to see a graphic display of a
\nmultiple regression analysis, it would look
\nsomething like the following:<\/p>\n
Coeffi cient Estimates
\nLabel Estimate std. Error t-value p-value
\nConstant 11.5199 0.0577072 199.626 0.0000
\n2STOREY 0.0358734 0.0340218 1.054 0.2954
\nBIaMEn 0.0157254 0.00609579 2.580 0.0120
\nDISTCURB 0.00177144 0.000644770 2.747 0.0077
\nIGPOOL 0.0942743 0.0343829 2.742 0.0078
\nInTCOnD_SUP 0.0572483 0.0307974 1.859 0.0673
\nLFa_SF 0.000195715 0.0000444733 4.401 0.0000
\nLOTaREa 3.508517E-6 2.017961E-6 1.739 0.0866
\nMaSOn_ExT 0.0657378 0.0239863 2.741 0.0078
\nSTSCaPE_SUP 0.0528603 0.0265032 1.994 0.0501
\nTRaFCOUnT -6.729380E-6 1.525865E-6 -4.410 0.0000<\/p>\n
R Squared: 0.754984
\nSigma hat: 0.088847
\nnumber of cases: 81
\nnumber of cases used: 80
\nDegrees of freedom: 69<\/p>\n
0
\n10 <\/p>\n
15
\n20<\/p>\n
SIZE
\n OF <\/p>\n
THE
\n HOU<\/p>\n
SE4.0 3.5 3.0 2.5 2.0
\nnUMBER OF BEDROOMS<\/p>\n
40
\n30 <\/p>\n
20
\n10<\/p>\n
P
\nR<\/p>\n
IC
\nE O<\/p>\n
F TH
\nE H<\/p>\n
O
\nU<\/p>\n
SE<\/p>\n
Th e above series of dots represents
\nnumber of bedrooms and house sizes
\nbeing conditioned against sale price. Th e
\nred box is the regression line. Th e line is
\nthree-dimensional because we are dealing
\nwith a number of variables. In fact, the
\ntechnology to display a regression line
\nagainst many more variables has not been
\ninvented as of the writing of this article.<\/p>\n
A problem of regression analysis is
\nthat it is a data hog. Since there are many
\nvariables or property characteristics that
\ncan cause or explain price diff erentials,
\nthere has to be a corresponding amount
\nof data per each variable. If you have too
\nmany variables and not enough sales data,
\nyou run into the problem of \u2018degrees
\nof freedom.\u2019 Th is is a fancy phrase that
\nbasically says one is asking too much from
\nthe data.<\/p>\n
As a result, regression will allocate
\na penalty. As a rule of thumb, for every
\nvariable selected there should be seven to
\n10 sales.<\/p>\n
Most appraisers would say that they
\nare lucky enough to fi nd fi ve to 10 sales
\nthat might yield evidence regarding
\nan injurious aff ection claim or the
\nlack thereof. In those cases, the use of
\na qualitative and quantitative method
\nknown as \u2018quality point\u2019 might be the tool
\nto use. Th e best example of this is in the
\ntextbook Property Valuation and Analysis,
\nSecond Edition, by RTM Whipple,
\npublished by Lawbook Co. 2006, ISBN <\/p>\n
Volume 57 | book 2 \/ tome 2 | 2013 | \u00e9valuation immobili\u00e8re au Canada | Canadian Property Valuation 21<\/p>\n
Click HERE to return to
\nTAbLE of ConTEnTs<\/p>\n
#0 455 22394 7. A little closer to home
\nis the book Readings in Canadian
\nReal Estate, Fourth Edition, by Gavin
\nArbuckle and Henry Bartel, Captus
\nUniversity Publications, BSN #1-55322-
\n062-5. Th ere is an article entitled Th e
\nContemporary Direct Comparison
\nApproach to Value\u201d written many years
\nago by myself on the topic of dealing with
\nsmall data bases using \u2018quality point.\u2019<\/p>\n
Learn more about
\nthese advanced tools
\nBefore running out and buying a shelf
\nfull of books on regression analysis, one
\nis advised to take smaller steps and begin
\nwith books that deal with basic statistics
\nand rudimentary data analysis. Th ere are
\ntwo reasons for this:<\/p>\n
1. Statistics has its own language and
\nyou need to understand it.<\/p>\n
2. Exploratory data analysis can reduce
\nany good appraiser\u2019s legs to jelly really <\/p>\n
fast. It will take you on a journey of
\nself-discovery, not only on how you
\nthink about data, but its method of
\npresentation and, most importantly,
\nwhat the data is telling you.<\/p>\n
If you want to learn more about
\nregression analysis, please refer to
\nthe Regression Analysis Publications
\nsidebar in the interactive electronic
\nedition of Canadian Property Valuation
\n(www.aicanada.ca).<\/p>\n
Conclusions
\nSophisticated real estate markets and
\nclaims of loss under the Expropriation
\nAct need strong diagnostic tools to sort
\nthe \u2018wheat\u2019 from the \u2018chaff .\u2019 Regression
\nmodeling has its place in deciphering
\ncomplex real estate problems. It is also fair
\nto say that regression analysis is not easily
\napplicable in every injurious aff ection case.
\nAnalyzing the outputs can be challenging,
\nparticularly in those cases where there is a <\/p>\n
marginal evidence for a claim. It can be
\ncomplex, but so is the world of real estate
\ndata. Data does not reveal its secrets easily
\nand even after \u2018running\u2019 a few regressions,
\nit might show that the claim for injurious
\naff ection may be apparent, weak, or
\nnon-existent. At least with regression
\nanalysis, the real estate expert is closer to
\nuncovering the truth based upon strong
\nanalytical skills.<\/p>\n
It has often been said that the
\n\u2018simplest\u2019 explanation of loss as a result of
\ninjurious aff ection is best presented so that
\narbitrators, judges and chairpersons can
\nunderstand it. From my perspective, that
\nstatement has no signifi cance, because
\nwe are living in a time where large blocks
\nof data are readily available through the
\nInternet. Conversations with American
\nappraisers who deal in condemnation
\n(land compensation claims) indicate
\nthat lawyers are heading back to school
\nto get a better understanding of the use
\nof data analysis, particularly regression
\nanalysis. Interesting reads include
\nStatistical Evidence in Litigation by Will
\nYancey, PhD; Multiple Regression in Legal
\nProceedings, 80 Columbia Law Review
\n702, by Franklin M. Fisher; or Statistics
\nfor Lawyers and Law for Statisticians,
\n89 Michigan Law Review, by David H.
\nKaye.<\/p>\n
I believe there is nothing more simple
\nthan the use of graphics to explain or
\ndefend a claim of injurious aff ection.
\nHowever, the mathematics is needed to
\nsupport the compensable amount.<\/p>\n
Whether one likes statistics or not,
\nthey are gaining considerable momentum
\nin the world of real estate analysis. For
\nexample, in some data analysis courses
\nI recently took5 through COURSEA,
\nthere were 55,000 people taking primary
\ncourses on the topic.<\/p>\n
Data analysis allows the practitioner
\nto see real estate data patterns that were
\nunthinkable 10 years ago. Th ey aff ord
\nglimpses to the makeup of data and
\nhow property variables aid in explaining
\nvariances in sale prices. After all, is that not
\nthe job of the real estate practitioner? <\/p>\n
Suite 101, 24 Inglewood Drive, St. Albert, AB T8N 6K4<\/p>\n
(587) 290-2267<\/p>\n
Canadian Property Valuation | \u00e9valuation immobili\u00e8re au Canada | Volume 57 | book 2 \/ tome 2 | 201322<\/p>\n