IS THIS A BUBBLE
\nAND IS IT BURSTING?
\nEst-ce une bulle et
\nest-elle pr\u00eate \u00e0 \u00e9clater?<\/p>\n
HALFWAY POINT UPDATE
\nON AIC\u2019S THREE-YEAR
\nSTRATEGIC PLAN
\nMise \u00e0 jour \u00e0 mi-parcours
\ndu Plan strat\u00e9gique
\ntriennal de l\u2019ICE<\/p>\n
CANNABIS LEGALIZATION:
\nCAUTION REQUIRED WHEN
\nDISCLOSING PERSONAL
\nINFORMATION IN A REPORT
\nL\u00e9galisation du cannabis :
\nAttention requise lors
\nde la divulgation de
\nrenseignements personnels
\ndans un rapport <\/p>\n
P
\nM<\/p>\n
#
\n40<\/p>\n
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\nca<\/p>\n
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\nda<\/p>\n
.c
\na<\/p>\n
The Official Publication of the
\nAppraisal Institute of Canada \/
\nPublication officielle de l\u2019Institut
\nCanadien des \u00c9valuateurs<\/p>\n
Immobili\u00e8re au Canada<\/p>\n
Canadian Property
\nVol 62 | Book 4 \/ Tome 4 2018<\/p>\n
GOING-CONCERN
\nAPPRAISALS
\nVS. BUSINESS
\nVALUATIONS<\/p>\n
\u00c9VALUATIONS
\nSUR UNE BASE <\/p>\n
DE CONTINUIT\u00c9
\nC. \u00c9VALUATIONS<\/p>\n
D\u2019ENTREPRISE<\/p>\n
WHO CAN PROVIDE
\nPROFESSIONAL
\nASSISTANCE?
\nQui peut fournir une
\naide professionnelle ?<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@aicanada.ca
\nmailto:info@aicanada.ca<\/p>\n
Learn how you can experience the difference at avisonyoung.com\/valuations<\/p>\n
Avison Young Valuation & Advisory Services
\nWe offer comprehensive real estate valuation and advisory
\nconsulting services, with all property types in major markets. <\/p>\n
Our services include:<\/p>\n
Paul Stewart BA, AACI, P. App.
\nPrincipal & Practice Leader<\/p>\n
paul.stewart@avisonyoung.com
\n905.968.8030<\/p>\n
Terry Taylor B. Comm, AACI, P. App.
\nPrincipal & Director<\/p>\n
terry.taylor@avisonyoung.com
\n403.228.4001 x 210<\/p>\n
Office IndustrialMulti-Family ConsultingLand PortfolioRetail<\/p>\n
The difference is
\nin the details<\/p>\n
http:\/\/avisonyoung.com\/valuations
\nmailto:paul.stewart@avisonyoung.com
\nmailto:terry.taylor@avisonyoung.com<\/p>\n
15 offices across Canada.
\nLocal experts in cities
\ncoast to coast.<\/p>\n
60+ appraiser experts
\ncollaborating with the
\nbest in the business.<\/p>\n
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\nlocal expert.<\/p>\n
REAL PROPERTY APPRAISALS<\/p>\n
APPRAISALS ARE
\nCOMPLICATED.<\/p>\n
FINDING A TRUSTED
\nAPPRAISER DOESN\u2019T <\/p>\n
HAVE TO BE.<\/p>\n
ACCESSIBLE RELIABLE SIMPLE<\/p>\n
CDC is passionate
\nabout connecting our
\npartners with trusted
\nindustry experts
\nacross Canada<\/p>\n
for the easiest appraisal experience, order online www.cdcinc.ca<\/p>\n
http:\/\/www.cdcinc.ca<\/p>\n
www<\/p>\n
Ready? <\/p>\n
Contact Brandi Heidler at:
\ncanada.careers@colliers.com
\nfor a confidential chat to learn <\/p>\n
more about our competitive
\ncompensation packages and <\/p>\n
the benefits of joining the
\nColliers Team. <\/p>\n
14 Offices
\n90 Professionals
\n4,500 Appraisals Each Year
\n1,250 Tax Appeals<\/p>\n
Interested in
\nbuilding value?
\nWe are actively seeking experienced
\ncommercial appraisers ready to take their
\ncareers to the next level.<\/p>\n
Accelerating success.<\/p>\n
Be inspired.
\nAt Colliers, we provide you with the tools to grow your business,
\nwhether you want to build a team and\/or become an asset type expert.
\nOur renowned educational platform, Colliers University, mentorship
\nstructure and innovative business model are just a few ways we can
\nhelp you build your career. <\/p>\n
Be collaborative.
\nWork with a fun and supportive team of professionals across North
\nAmerica who are ready to lend a hand and share their expertise.
\nThis gives you the opportunity to work on a variety of asset classes
\nwith the support of our specialty asset type leaders. <\/p>\n
Be entrepreneurial.
\nWe give you the freedom and flexibility to build and manage your
\ncareer. Our role is to give you every advantage necessary to
\naccomplish your work efficiently so you can take that next step. <\/p>\n
Colliers International Canada
\nValuation & Advisory Services<\/p>\n
collierscanada.com\/vas<\/p>\n
http:\/\/collierscanada.com\/vas
\nmailto:canada.careers@colliers.com<\/p>\n
The articles printed in
\nthis issue represent
\nauthors\u2019 opinions only
\nand are not necessarily
\nendorsed by the
\nAppraisal Institute
\nof Canada. Copyright
\n2018 by the Appraisal
\nInstitute of Canada.
\nAll rights reserved.
\nReproduction in whole
\nor in part without
\nwritten permission
\nis strictly prohibited.
\nSubscription, $40.00 per
\nyear. Printed in Canada. <\/p>\n
Les articles imprim\u00e9s dans
\nce num\u00e9ro ne rep\u00e9sentent
\nque l\u2019opinion de leur auteur
\nrespectif, mais ne sont pas
\nn\u00e9ces\u2013sairement endoss\u00e9s
\npar l\u2019Institut Canadien des
\n\u00c9valuateurs. Tous droits
\nreserv\u00e9s 2018 par l\u2019Institut
\nCanadien des \u00c9valuateurs.
\nLa reproduction totale ou
\npartielle sous quelque
\nform que se soit sans
\nauthorisation \u00e9crite est
\nabsolument interdite.
\nAbonnement $40.00 par
\nann\u00e9e. Imprim\u00e9 au Canada.<\/p>\n
* The Appraisal Institute of
\nCanada reserves the right
\nto reject advertising that it
\ndeems to be inappropriate.<\/p>\n
** The publisher and the
\nAppraisal Institute of Canada
\ncannot be held liable for
\nany material used or claims
\nmade in advertising included
\nin this publication.Indexed
\nin the Canadian Business
\nIndex and available on-line
\nin the Canadian Business &
\nCurrent Affairs database.
\nISSN 0827-2697<\/p>\n
Publication Mails Agreement
\n#40008249<\/p>\n
Return undeliverable
\nCanadian addresses to:
\nAppraisal Institute of Canada
\n403-200 Catherine St.,
\nOttawa, ON K2P 2K9.
\nEmail: info@aicanada.ca<\/p>\n
Director – Communications:
\nPaul H\u00e9bert, Ottawa<\/p>\n
Publication management,
\ndesign and production by:
\nDirection, conception et
\nproduction par :<\/p>\n
3rd Floor \u2013 2020 Portage
\nAvenue, Winnipeg,
\nMB R3J 0K4
\nPhone: 866-985-9780
\nFax: 866-985-9799
\nE-mail: info@kelman.ca
\nWeb: www.kelman.ca<\/p>\n
Managing Editor:
\nCraig Kelman<\/p>\n
Design\/Layout:
\nTabitha Robin<\/p>\n
Marketing Manager:
\nKris Fillion<\/p>\n
Advertising Co-ordinator:
\nStefanie Hagidiakow<\/p>\n
06 Executive Corner
\nHalfway point update
\non AIC\u2019s three-year
\nStrategic Plan<\/p>\n
28 Professional
\nPractice Matters
\nWho can provide
\nprofessional assistance?<\/p>\n
32 Legal Matters
\nShould contamination
\nremediation costs
\nbe deducted from
\nan expropriation
\ncompensation payment?<\/p>\n
38 Advocacy
\nAdvocacy in Action<\/p>\n
44 The Future is Bright
\nKim Passmore, AACI, P.App:
\nCombining ambition with
\na dynamic, open-minded
\napproach to the appraisal
\nprofession<\/p>\n
51 Designations,
\nCandidates, Students<\/p>\n
52 News
\n\u2022 2019 AIC Conference
\n\u2022 Still time for
\n education credits
\n\u2022 In Memoriam<\/p>\n
09 Le coin de l\u2019ex\u00e9cutif
\nMise \u00e0 jour \u00e0 mi-parcours
\ndu Plan strat\u00e9gique triennal
\nde l\u2019ICE<\/p>\n
30 Parlons pratique
\nprofessionnelle
\nQui peut fournir une
\naide professionnelle ?<\/p>\n
35 Questions jurdiques
\nFaut-il d\u00e9duire les co\u00fbts
\nde d\u00e9contamination d\u2019un
\npaiement d\u2019indemnisation
\nd\u2019expropriation? <\/p>\n
41 D\u00e9fense
\nD\u00e9fense des int\u00e9r\u00eats \u00e0 l\u2019\u0153uvre<\/p>\n
47 L\u2019avenir s\u2019annonce bien
\nKim Passmore, AACI, P. App. :
\nAllier l\u2019ambition \u00e0 une
\napproche dynamique et ouverte
\n\u00e0 la profession d\u2019\u00e9valuation<\/p>\n
51 D\u00e9signations,
\nstagiaires, \u00e9tudiants<\/p>\n
52 Nouvelles
\n\u2022 Congr\u00e8s 2019 de l\u2019ICE
\n\u2022 Il est encore temps d\u2019obtenir
\n des cr\u00e9dits d\u2019\u00e9ducation
\n\u2022 En m\u00e9moire<\/p>\n
Is this a bubble
\nand is it bursting?<\/p>\n
Est-ce une bulle et
\nest-elle pr\u00eate \u00e0 \u00e9clater?<\/p>\n
Going-concern appraisals
\nvs. business valuations<\/p>\n
\u00c9valuations sur une base de
\ncontinuit\u00e9 c. \u00e9valuations d\u2019entreprise<\/p>\n
12<\/p>\n
23<\/p>\n
16<\/p>\n
COLUMNS CHRONIQUES<\/p>\n
Cannabis legalization:
\nCaution required when disclosing
\npersonal information in a report<\/p>\n
L\u00e9galisation du cannabis :
\nAttention requise lors de la
\ndivulgation de renseignements
\npersonnels dans un rapport<\/p>\n
www<\/p>\n
Ready? <\/p>\n
Contact Brandi Heidler at:
\ncanada.careers@colliers.com
\nfor a confidential chat to learn <\/p>\n
more about our competitive
\ncompensation packages and <\/p>\n
the benefits of joining the
\nColliers Team. <\/p>\n
14 Offices
\n90 Professionals
\n4,500 Appraisals Each Year
\n1,250 Tax Appeals<\/p>\n
Interested in
\nbuilding value?
\nWe are actively seeking experienced
\ncommercial appraisers ready to take their
\ncareers to the next level.<\/p>\n
Accelerating success.<\/p>\n
Be inspired.
\nAt Colliers, we provide you with the tools to grow your business,
\nwhether you want to build a team and\/or become an asset type expert.
\nOur renowned educational platform, Colliers University, mentorship
\nstructure and innovative business model are just a few ways we can
\nhelp you build your career. <\/p>\n
Be collaborative.
\nWork with a fun and supportive team of professionals across North
\nAmerica who are ready to lend a hand and share their expertise.
\nThis gives you the opportunity to work on a variety of asset classes
\nwith the support of our specialty asset type leaders. <\/p>\n
Be entrepreneurial.
\nWe give you the freedom and flexibility to build and manage your
\ncareer. Our role is to give you every advantage necessary to
\naccomplish your work efficiently so you can take that next step. <\/p>\n
Colliers International Canada
\nValuation & Advisory Services<\/p>\n
collierscanada.com\/vas<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@kelman.ca
\nhttp:\/\/www.kelman.ca<\/p>\n
Halfway point update on
\nAIC\u2019s three-year Strategic Plan<\/p>\n
P
\ne<\/p>\n
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\nr <\/p>\n
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\nc<\/p>\n
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The last few years have
\nbeen transformative,
\nnot just for the
\nAppraisal Institute
\nof Canada
\n(AIC), but for
\nthe valuation
\nprofession as a
\nwhole. In the face of
\nthe challenges \u2013 and <\/p>\n
opportunities \u2013 that
\na quickly-changing
\nlandscape provides,
\nthe AIC National
\nBoard, committees,
\nand staff have been
\nworking hard to ensure
\nthat our organization
\nmaintains its place as <\/p>\n
the preeminent
\nbody within
\nthe valuation <\/p>\n
profession, both within
\nCanada and around the globe.<\/p>\n
We are now well into our 2018-2020
\nthree-year Strategic Plan. This Plan is
\nfocused, action-oriented, and has already
\nproduced tangible results. Like the
\nprevious version on which this document <\/p>\n
BY PETER MCLEAN, AACI, P.APP, President<\/p>\n
AND KEITH LANCASTLE, MBA, CAE, AACI (HON.), Chief Executive Officer<\/p>\n
was built, the 2018-2022 Strategic
\nPlan has four pillars: 1) promotion of
\nmembers as professionals of choice,
\n2) diversification, 3) advocacy, and
\n4) a vibrant and engaged membership.
\nOur goals are ambitious, but obtainable.
\nHere is a glance at what we have
\nachieved so far, as well as what we have
\nin the pipeline for the second half of this
\nthree-year plan:<\/p>\n
1. Promotion of members as
\nprofessionals of choice. This
\npillar focuses on the services and
\nknowledge that our members
\nprovide to their clients by turning
\nour attention to the people
\nand organizations who engage
\nappraisers \u2013 lenders, brokers,
\neven the public.
\n We have taken a more active
\nrole on Twitter and LinkedIn,
\nhave been increasingly active in
\nthe mainstream media, and have
\ndeveloped and implemented a
\nfairly comprehensive advertising
\ncampaign. As a result of these
\nstrategies, along with improved
\nsearch engine optimization and our
\nnewly revamped website, our website
\ntraffic is consistently increasing
\nmonth over month. AICanada.ca is
\nbecoming a go-to site. <\/p>\n
Looking ahead, we will continue
\nto build on the success we have
\nseen. The impact of our investments
\nhas been significant, but we want to
\nmaintain this momentum. On this note,
\nthere is something you as Members
\ncan do to help. Last year, over
\n120,000 people went to Find an
\nAppraiser to search for appraisal
\nservices, and we are on track to
\nsurpass that number for 2018. And yet,
\nless than half of our Members have
\ncompleted their AIC profiles. Something
\nas simple as filling out your areas of
\ncompetence, areas served, photo, and
\ncontact information can increase your
\nvisibility to potential clients. <\/p>\n
2. Diversification of the profession.
\nThe mortgage financing portion
\nof the profession has been under
\nincreasing pressure over the
\nlast several years. Low fees and
\nshort turnaround times, among
\nother challenges, have been top
\nof mind for our National Board. By
\ndiversifying the Canadian Uniform
\nStandards of Professional Appraisal
\nPractice (CUSPAP) to expand the
\nscope of work that our Members can
\ndo, we aim to reduce the reliance on
\nmortgage finance work as the main
\nsource of revenue for Members. <\/p>\n
Canadian Property Valuation | \u00c9valuation Immobili\u00e8re au Canada 6 Return to CONTENTS<\/p>\n
K
\ne<\/p>\n
ith
\n L<\/p>\n
a
\nn<\/p>\n
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\na<\/p>\n
stle
\n, A<\/p>\n
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\nC<\/p>\n
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\no<\/p>\n
n
\n.)<\/p>\n
EXECUTIVE CORNER<\/p>\n
In the last four years, we have
\nadded three new standards:
\nReserve Fund Studies in 2014,
\nMachinery and Equipment in
\n2016, and, most recently, Mass
\nAppraisal in 2018. Further, we have
\nidentified training partners to help
\nMembers develop the knowledge
\nand skills to capitalize on business
\nopportunities. While these are
\nall new areas of expertise, they
\neach build on the skillset that AIC
\nMembers have developed through
\nour rigorous training program,
\nand they will help move us past the
\ntraditional types of work that will
\ncontinue to see downward pressure
\nin the coming years. <\/p>\n
3. Advocacy. Going back nearly
\n20 years, advocacy was one of the
\nmain reasons that AIC decided
\nto move its office to Ottawa.
\nWe wanted to make sure that
\nappraisers were being considered
\nand consulted when it came to
\npublic policy and key decision areas.
\nYou have probably heard this before,
\nbut it is worth repeating: advocacy
\nis a marathon, not a sprint. Over the
\nlast three or four years, we have
\nreally begun making headway; we <\/p>\n
are being heard in a way that we
\nhave not been heard before.
\n As you may know, in the spring
\nof 2017, AIC had two opportunities
\nto appear before the House of
\nCommons Finance Committee.
\nAs part of our presentations, we
\nspoke out in favour of Canada\u2019s
\nregulatory regime \u2013 OSFI\u2019s B-20
\nand B-21 guidelines \u2013 not for
\nour own benefit, but because it
\nprotects the Canadian market
\nand public. Then, a few weeks
\nlater, the substance of our
\nrecommendations was included in
\nan OSFI announcement concerning
\nmortgage underwriting. This is a
\nprime example of our voices being
\nheard at a federal level.
\n What does this mean for AIC
\nMembers? When B-20 and B-21
\nguidelines first came into effect, our
\nMembers saw a significant upswing
\nin appraisal work \u2013 upwards of
\n40%. In fact, if we can continue to
\nsuccessfully advocate for the types
\nof rules and guidelines that protect
\nthe Canadian market and public, our
\nMembers should continue to see
\nincreased activity.
\n But advocacy is not just a
\nParliament Hill activity. There is also
\na need for it in each province, which
\nis why we have been supporting our
\nprovincial associations in taking more
\nactive roles. We are working with
\nthem to include our core messages
\nin their own advocacy efforts. We
\nneed to be talking about issues that
\nare important to our Members \u2013 both
\nfederally and provincially \u2013 because if
\nwe are not, someone else will step in
\nand take that role. <\/p>\n
As we know, this takes time,
\nbut we are on the right track. We
\nhave made some great strides and
\nconnections, and we continue to pick
\nup speed.<\/p>\n
4. Vibrant and engaged membership.
\nThis pillar is key, because
\nwithout our Members,
\nthere is no AIC. Looking at
\nrecruitment and retention,
\nwe know that AIC continues
\nto grow at a time where
\nmost organizations in
\nour space are, at best,
\nstagnant. We know
\nthat we cannot take
\nthis for granted
\nthough, which is
\nwhy we are focused
\non what we call
\n\u201cmembership
\nexperience\u201d \u2013 how
\nwe service our
\nMembers.
\n We have worked to
\nimprove our insurance
\nprogram. Over the
\npast few years, we
\nhave introduced a
\nnew broker, a new
\ninsurance company,
\nand, in 2017, a new claims
\nmanagement company.
\nAs a wholly owned
\nsubsidiary of AIC,
\nVerity Claims
\nManagement provides
\neffective and efficient claims
\nhandling and adjusting services
\nreserved solely for AIC Members.
\nIt also provides AIC National
\nwith reliable aggregate data on
\nthe causes of claims, as well as
\nstrategies to reduce the risks, and
\nthe costs, of claims.
\n As a result of these steps taken \u2013
\nand improvement in the market \u2013 we
\nare getting a firm handle on claims.
\nThat has translated into a very stable
\npremium at a time when markets <\/p>\n
Our three-year Strategic Plan is focused, action-oriented,
\nand has already produced tangible results.<\/p>\n
We see ourselves on
\nthe crest of a wave;
\nalthough we have made
\ngreat strides, there
\nis still much more to
\naccomplish.<\/p>\n
Volume 62 | Book 4 \/ Tome 4 | 2018 7Return to CONTENTS<\/p>\n
EXECUTIVE CORNER<\/p>\n
across the country have been quite
\nvolatile. It has also allowed us to
\nput the program on far more solid
\nfooting, which ensures that we will
\ncontinue to have access to top shelf
\ncoverage when the next spike in
\nclaims happens.
\n In another effort to reduce liability
\nexposure, AIC introduced the now-
\nmandatory 0518 suite of residential
\nappraisal forms. These forms are
\na huge step forward. They include
\na number of new clauses that are
\nintended to help limit Members\u2019
\nliability in the event of a claim; they
\naim to provide the lawyers who
\ndefend our Members with the tools
\nthey need to limit claim costs.
\n Another area we identified as
\nneeding improvement was the <\/p>\n
Candidate experience, which was
\nslightly bottlenecked and lacked
\nconsistency across the country.
\nTo accelerate the Work Product
\nReview (WPR) process and relieve
\npressure on volunteers, AIC added
\nresources to the National office,
\nwhich has already reduced the
\nwait time for WPR results. We also
\nrevised the Professional Competency
\nInterview \u2013 the final stage of the
\npath to designation. Rather than <\/p>\n
being administered by provincial
\noffices, these interviews are now
\nconducted virtually and overseen
\nby the National office. These
\nimprovements have all been in
\nthe efforts to provide Candidates
\nwith a more streamlined, reliable
\nexperience from coast to coast.
\n Finally, we are working with
\nour education partners and others
\nto increase availability of CPD
\nopportunities, both online and
\nin person.<\/p>\n
The feedback we received during the
\nstrategic planning process was clear:
\nwhile the priorities and objectives that
\nwe had identified are valid, we need to
\ncontinue to pursue them aggressively
\nto maintain the momentum that we
\nhave created. We need to continue
\nto explore new ways in which we can
\nachieve the goals that we are working
\ntowards. We see ourselves on the crest
\nof a wave; although we have made great
\nstrides, there is still much more to
\naccomplish. At the end of the day, we
\nare focused on providing our Members
\nwith the best service we can so that
\nthey can continue to be leaders in the
\nvaluation profession. <\/p>\n
We are focused on
\nproviding our Members
\nwith the best service we
\ncan so that they can
\ncontinue to be leaders in
\nthe valuation profession.<\/p>\n
While the priorities and objectives that we had identified
\nare valid, we need to continue to pursue them aggressively
\nto maintain the momentum that we have created. <\/p>\n
Suite 101, 24 Inglewood Drive, St. Albert, AB T8N 6K4<\/p>\n
Please send resumes to: info@crvg.com
\nAACI & Candidates<\/p>\n
Tel: (780) 424-8856 \u2022 Fax: (587) 290-2267<\/p>\n
Canadian Property Valuation | \u00c9valuation Immobili\u00e8re au Canada 8 Return to CONTENTS<\/p>\n