Vol 65 | Book 2 \/ Tome 2 2021<\/p>\n
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\nda<\/p>\n
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\na<\/p>\n
The Official Publication of the
\nAppraisal Institute of Canada \/
\nPublication officielle de l\u2019Institut
\nCanadien des \u00c9valuateurs<\/p>\n
WHAT TO DO WITH
\nA SLIGHTLY USED
\nOFFICE BUILDING
\nQuoi faire avec un
\nimmeuble \u00e0 bureaux
\nl\u00e9g\u00e8rement usag\u00e9
\ntranchants<\/p>\n
LIMITS ON THE FEE
\nSIMPLE INTEREST:
\nCONTRASTING
\nEXPROPRIATION AND
\nPOLICE POWERS
\nLimites de l\u2019int\u00e9r\u00eat en fief
\nsimple : Expropriation
\nversus pouvoirs de police <\/p>\n
HOW TO DETERMINE
\nTHE CONTRIBUTORY
\nVALUE OF SOLAR
\nPANELS ON A SMALL
\nAPARTMENT BUILDING
\nComment calculer la
\nvaleur contributive
\ndes panneaux
\nsolaires install\u00e9s sur
\nun petit immeuble
\nd\u2019habitation<\/p>\n
La diversification<\/p>\n
Diversification
\nis the key to success <\/p>\n
est la cl\u00e9 du succ\u00e8s<\/p>\n
Immobili\u00e8re au Canada<\/p>\n
Canadian Property<\/p>\n
mailto:info@aicanada.ca<\/p>\n
Imagine your career with endless possibilities,
\ndriven by technology and opportunity. The
\nAvison Young Valuation & Advisory Services
\nTeam is growing and we are looking for
\nindividuals, teams and companies across
\nCanada seeking an opportunity to grow with us.<\/p>\n
Acquisition or signing bonuses available!<\/p>\n
Avison Young creates real economic, social and environmental
\nvalue as a global real estate advisor, powered by people.
\nOur integrated talent realizes the full potential of real
\nestate by using global intelligence platforms that provide
\nclients with insights and advantage. Together, we can
\ncreate healthy, productive workplaces for employees,
\ncities that are centers for prosperity for their citizens,
\nand build spaces and places that create a net benefit to
\nthe economy, the environment and the community.<\/p>\n
avisonyoung.ca\/valuations<\/p>\n
To learn more, please contact us at:
\ncanada.valuation@avisonyoung.com<\/p>\n
Launch<\/p>\n
career
\nyour<\/p>\n
http:\/\/avisonyoung.ca\/valuations
\ncanada.valuation@avisonyoung.com<\/p>\n
Imagine your career with endless possibilities,
\ndriven by technology and opportunity. The
\nAvison Young Valuation & Advisory Services
\nTeam is growing and we are looking for
\nindividuals, teams and companies across
\nCanada seeking an opportunity to grow with us.<\/p>\n
Acquisition or signing bonuses available!<\/p>\n
Avison Young creates real economic, social and environmental
\nvalue as a global real estate advisor, powered by people.
\nOur integrated talent realizes the full potential of real
\nestate by using global intelligence platforms that provide
\nclients with insights and advantage. Together, we can
\ncreate healthy, productive workplaces for employees,
\ncities that are centers for prosperity for their citizens,
\nand build spaces and places that create a net benefit to
\nthe economy, the environment and the community.<\/p>\n
avisonyoung.ca\/valuations<\/p>\n
To learn more, please contact us at:
\ncanada.valuation@avisonyoung.com<\/p>\n
Launch<\/p>\n
career
\nyour your future <\/p>\n
We embrace different perspectives
\nand we\u2019re interested in yours. Join our
\ngrowing valuation team on our journey
\nto redefine the future of real estate.<\/p>\n
Dave Black
\nAACI, P. App., MRICS
\nExecutive Vice President & National Practice Lead
\nJLL Valuation Advisory<\/p>\n
Dave.Black@am.jll.com
\njll.ca\/value<\/p>\n
mailto:Dave.Black@am.jll.com
\nhttp:\/\/jll.ca\/value<\/p>\n
Colliers recently introduced new market leading report
\nwriting software which upon its introduction increased
\naverage report production speeds by upwards of 30%.
\nColliers AACI designated appraisers in Canada had an
\naverage net compensation in 2020 in excess of $200,000.
\nReach out today to learn how to leverage Colliers brand,
\ntechnology and resources to take your career to the next
\nlevel.<\/p>\n
Contact Brandi Skaggs at Brandi.Skaggs@colliers.com
\nto learn more about joining Valuation & Advisory Services
\nat Colliers International.<\/p>\n
colliers.com<\/p>\n
Be the expert
\nColliers is seeking motivated appraisers to join our
\nValuation and Advisory Services team.<\/p>\n
mailto:Brandi.Skaggs@colliers.com
\nhttp:\/\/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
\n2021 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 2021 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:
\nKristy Unrau<\/p>\n
Marketing Manager:
\nKris Fillion<\/p>\n
Advertising Co-ordinator:
\nStefanie Hagidiakow<\/p>\n
7 Executive Corner
\nPresident Wicherek reflects on a year like no other<\/p>\n
40 Legal Matters
\nLimits on the fee simple interest
\nContrasting expropriation and police powers<\/p>\n
46 Advocacy
\nHousing is not just a commodity,
\nit is a basic human right<\/p>\n
50 News
\n \u2022 Annual General Meeting <\/p>\n
\u2022 CMHC appointment
\n\u2022 Important dates<\/p>\n
54 Designations, Candidates, Students<\/p>\n
12 Le coin de l\u2019ex\u00e9cutif
\nLe pr\u00e9sident Wicherek analyse une ann\u00e9e pas comme les autres<\/p>\n
43 Questions juridiques
\nLimites de l\u2019int\u00e9r\u00eat en fief simple
\nExpropriation versus pouvoirs de police<\/p>\n
48 D\u00e9fense des int\u00e9r\u00eats
\nLe logement n\u2019est pas qu\u2019une commodit\u00e9,
\nc\u2019est un droit de l\u2019homme fondamental<\/p>\n
50 Nouvelles
\n\u2022 Assembl\u00e9e g\u00e9n\u00e9rale annuelle
\n\u2022 Nomination \u00e0 la SCHL
\n\u2022 Dates importantes<\/p>\n
54 D\u00e9signations, stagiaires, \u00e9tudiants<\/p>\n
How to determine the contributory
\nvalue of solar panels on a
\nsmall apartment building
\nComment calculer la valeur contributive
\ndes panneaux solaires install\u00e9s sur un
\npetit immeuble d\u2019habitation<\/p>\n
What to do with a
\nslightly used office building
\nQuoi faire avec un immeuble
\n\u00e0 bureaux l\u00e9g\u00e8rement usag\u00e9<\/p>\n
34<\/p>\n
24<\/p>\n
COLUMNS CHRONIQUES<\/p>\n
Diversification is the
\nkey to success in today\u2019s
\never-changing marketplace<\/p>\n
La diversification est la cl\u00e9
\ndu succ\u00e8s dans le march\u00e9
\nactuel toujours changeant<\/p>\n
16<\/p>\n
Colliers recently introduced new market leading report
\nwriting software which upon its introduction increased
\naverage report production speeds by upwards of 30%.
\nColliers AACI designated appraisers in Canada had an
\naverage net compensation in 2020 in excess of $200,000.
\nReach out today to learn how to leverage Colliers brand,
\ntechnology and resources to take your career to the next
\nlevel.<\/p>\n
Contact Brandi Skaggs at Brandi.Skaggs@colliers.com
\nto learn more about joining Valuation & Advisory Services
\nat Colliers International.<\/p>\n
colliers.com<\/p>\n
Be the expert
\nColliers is seeking motivated appraisers to join our
\nValuation and Advisory Services team.<\/p>\n
mailto:info@aicanada.ca
\nmailto:info@kelman.ca
\nhttp:\/\/www.kelman.ca<\/p>\n
WE\u2019RE
\nLOOKING
\nFOR NEW
\nTALENT
\nRESEARCH ASSISTANTS
\nCANDIDATE APPRAISERS
\nDESIGNATED APPRAISERS<\/p>\n
APPLY TODAY
\nINFO@CDCINC.CA<\/p>\n
NATIONAL COVERAGE
\nLOCAL EXPERTISE
\nEXCELLENT SERVICE<\/p>\n
1 (866) 479-7922
\nwww.cdcinc.ca<\/p>\n
INFO@CDCINC.CA
\nhttp:\/\/CDCINC.CA<\/p>\n
President Wicherek
\nreflects on a year like no other<\/p>\n
N earing the end of a one-year presidential term the likes of which have never been seen before, Appraisal Institute
\nof Canada (AIC) outgoing president Jan
\nWicherek, AACI, P.App has lead the Institute
\nthrough an incredibly challenging year that
\nhas been heavily influenced by a worldwide
\npandemic. Here are President Wicherek\u2019s <\/p>\n
reflections on a year like no other.<\/p>\n
What has the past year <\/p>\n
been like with regard to the <\/p>\n
pandemic and the unique <\/p>\n
challenges it presented?<\/p>\n
JW: From a personal standpoint,
\nit has been a very difficult year. <\/p>\n
I reside in Prince Edward Island,
\nwhile my immediate family lives in <\/p>\n
New Brunswick. Although they are a <\/p>\n
stone\u2019s throw away, I was only able to see
\nthem three or four times in more than a
\nyear, which is far less than would normally
\nbe the case. I am sure most of the readers
\ncan relate when I say that it made the
\ncommunication and friendship that are so
\nimportant in my life extremely difficult.<\/p>\n
Business-wise, the past 14 months have
\nbeen a roller coaster ride that I could never
\nhave anticipated. Because of the pandemic,
\nmy business completely stopped for 2 \u00bd
\nmonths beginning in March of 2020. After
\ncatching up on those files that you had
\naccepted but never really wanted, there was
\nliterally no work whatsoever for me to do.
\nFortunately, real estate appraisers were
\nsubsequently deemed an essential service
\nand I was able to work again, albeit in a
\ncompletely different fashion than what had
\npreviously been the norm. <\/p>\n
For the most part, property inspections
\nbecame external only, and my commercial
\nwork required an entirely new approach. No
\nlonger able to visit and tour a commercial
\npremises, I instead had to meet with
\npeople in a socially-distanced setting
\nto discuss aspects of their properties.
\nFrom no more handshakes, to wearing
\nfacemasks and gloves, to reevaluating the
\nassumptions that could be made regarding
\na property\u2019s value in the midst of a global
\npandemic, it presented some interesting <\/p>\n
BY JAN WICHEREK, AACI, P.APP <\/p>\n
President, Appraisal Institute of Canada<\/p>\n
With support from national staff, this group of
\nindividuals made it their mission to stay on top of
\nall aspects of the pandemic and provide as much
\nongoing information and support as possible to help
\nour members make the best of a difficult situation.<\/p>\n
WE\u2019RE
\nLOOKING
\nFOR NEW
\nTALENT
\nRESEARCH ASSISTANTS
\nCANDIDATE APPRAISERS
\nDESIGNATED APPRAISERS<\/p>\n
APPLY TODAY
\nINFO@CDCINC.CA<\/p>\n
NATIONAL COVERAGE
\nLOCAL EXPERTISE
\nEXCELLENT SERVICE<\/p>\n
1 (866) 479-7922
\nwww.cdcinc.ca<\/p>\n
Volume 65 | Book 2 \/ Tome 2 | 2021 7Return to CONTENTS<\/p>\n
EXECUTIVE CORNER<\/p>\n
and unique challenges. For example,
\nthe tourism industry has long been a huge
\ncomponent of the Island\u2019s economy, and
\naccording to recently published numbers
\nby the Tourist Industry Association of PEI,
\noverall numbers declined province-wide by
\nmore than 70%. You can only imagine the
\ndifficulties and complications of attempting
\nto value seasonal and year-round lodging
\nand hospitality developments. Because of
\nthe constantly shifting pandemic-related
\nlandscape, we also had to devise different
\nwording for our reports that stressed the
\nneed to have property values reviewed on a
\nmore frequent and regular basis depending
\nupon the asset type in question. <\/p>\n
Fortunately, although there was
\ninconsistency in regard to various income-
\nproducing asset types, the market picked
\nup and never looked back and the past
\nyear became one of my best business
\nyears ever. Fewer cases in our geographic
\nregion relative to the rest of Canada
\ncombined with the fact that our urban
\ncentres are smaller and less populated
\nmeant that a bubble opened up throughout
\nthe Maritimes. Within this bubble, the
\nconstruction industry and multi-family
\nproperties saw a growth explosion that
\nhad very positive effects on my appraisal
\nbusiness that continue to this day. <\/p>\n
How did the pandemic and its <\/p>\n
corresponding restrictions affect <\/p>\n
the AIC as an organization and your <\/p>\n
responsibilities as president? <\/p>\n
JW: It certainly meant that we could no
\nlonger operate in many of our traditional
\nways, instead having to devise alternate
\nmethods to accomplish our goals.
\nFortunately, the AIC is blessed with an
\nincredible group of volunteers and staff,
\nwithout whom we could not have carried
\non and successfully met the challenges
\nwe encountered. I truly believe that our
\ncurrent Board of Directors is the best
\nBoard with which I have ever been involved.
\nTheir diversity, dedication and outstanding
\nwork ethic enabled them to continue
\nmoving the AIC forward in its quest to <\/p>\n
serve our members and provide them
\nwith the tools and support to succeed in
\nan ever-changing world full of uncertainty
\nand \u2018new normals.\u2019<\/p>\n
While conducting our business in these
\nchallenging times, the biggest obstacle
\nwas not being able to have in-person
\nmeetings with national staff, Board and
\ncommittees. Thankfully, we were able to
\nmake use of technology to conduct virtual
\nmeetings via Zoom and other platforms.
\nWhile it was obvious early on that some
\npeople were feeling disconnected and
\nout of touch during the meetings, I
\nmade it a personal goal to ensure that
\neveryone was engaged and moving
\ntogether in a positive direction. One of the
\ntechniques I incorporated was to bring
\nan element of humor into the meetings
\nso that participants could feel a certain
\nsense of normalcy. As time went by, the
\nmeetings became more productive and
\nefficient, with those in attendance actively
\nparticipating in a very positive way. <\/p>\n
One of the developments during this
\npandemic of which I am extremely proud
\nwas the AIC\u2019s establishment of a COVID
\nTask Force. With support from national
\nstaff, this group of individuals made it their
\nmission to stay on top of all aspects of the
\npandemic and provide as much ongoing
\ninformation and support as possible to
\nhelp our members make the best of a
\ndifficult situation.<\/p>\n
From a personal perspective, I
\ndefinitely regret not having had the
\nopportunity to travel across this great
\nland of ours and meet our AIC members
\nin person. That is one of the greatest
\nbenefits of serving as president. But you
\nhave to play the hand you are dealt, and
\nthat is what we have done.<\/p>\n
Will the way the organization and the <\/p>\n
Board of Directors was forced to carry <\/p>\n
out their duties during the pandemic <\/p>\n
have any lasting impact on operations <\/p>\n
going forward?<\/p>\n
JW: In my opinion, the future will consist
\nof a hybrid between pre- and post-COVID
\npractices. We will most certainly utilize
\nthe newly embraced technologies for
\nconducting business virtually, but we
\nwill also continue with face-to-face
\ninteractions that have some distinct
\nadvantages for individuals to engage,
\nread and interact with others.<\/p>\n
Even before COVID became part of
\nour everyday lives, the AIC had formed a
\nShaping Our Future Task Force to review
\nour organization\u2019s entire operation and
\nmake recommendations as to how we can
\nbetter serve our members, the profession,
\nour clients and the public. While COVID
\nmay have slowed down the efforts of this
\nTask Force, it has not altered its mandate
\ngoing forward and we will continue to get
\nbetter at what we do as the future unfolds.<\/p>\n
I am also very proud to have struck
\nthe Presidents Council on Diversity and
\nInclusion, with a mandate, in part, to
\npromote equity and diversity within the
\nvaluation profession. The Council will
\nbegin the important work of helping
\nensure that our governance structure is as
\ndiverse and inclusive as the membership
\nand public it serves. I wanted to ensure
\nthat the AIC strives to continue to improve
\nthe diversity and inclusivity of the Institute
\nand by extension the appraisal profession.
\nI know the AIC is committed to creating
\nan environment that does not shy away
\nfrom difficult dialogues. Essentially, it
\nis my hope that the Council, along with
\ngoverning documents including our Code <\/p>\n
I am also very proud to have struck the President\u2019s
\nCouncil on Diversity and Inclusion, with a mandate,
\nin part, to promote equity and diversity within the
\nvaluation profession. <\/p>\n
Canadian Property Valuation | \u00c9valuation Immobili\u00e8re au Canada 8 Return to CONTENTS<\/p>\n
EXECUTIVE CORNER<\/p>\n
of Conduct and ethics standards, our
\ncomplaint resolution process, as well as
\nour technical training, will ensure that
\ndiscrimination and bias is removed to the
\ngreatest extent possible throughout the
\nappraisal profession.<\/p>\n
What do you feel were the AIC\u2019s <\/p>\n
most significant accomplishments <\/p>\n
or initiatives that have taken place <\/p>\n
during your term?<\/p>\n
JW: I guess you could say it has been
\na mix of survival and accomplishment.
\nNone of us knew how bad the pandemic
\nwas going to be or how long it was going
\nto last. As president, I was committed to
\ndoing the best I could to keep the Institute
\nprogressing. Leaving things unchanged
\nfrom what they had been a year earlier
\nwas not an option. The challenge was to
\nencourage everyone to buy into the new
\nnormal, while at the same time make
\nprogress on important initiatives that
\nneeded to move forward. <\/p>\n
As for what we have accomplished in
\nthe past several months, I am particularly
\nproud of a number of developments.
\nI spoke earlier about the COVID Task
\nForce, which was an important initiative
\nto ensure that we could survive and
\nthrive in very trying circumstances. I also
\nreferenced our existing Shaping Our
\nFuture Task Force, which has continued
\nto review our operations and will provide
\nfeedback and recommendations to keep
\nthe AIC evolving in very progressive
\nways. In addition, we have managed to
\ncontinue growing our relationships with
\nstakeholders such as AMCs, national
\nlenders, and government leaders, which
\nwill continue to serve us well in the
\nmonths and years ahead. <\/p>\n
One development that has been a long
\ntime in the making is the relationship
\nbetween the AIC and the Ordre des
\n\u00e9valuateurs agr\u00e9\u00e9s du Qu\u00e9bec (OEAQ).
\nThrough ongoing discussion and a shared
\nwillingness to compromise, I feel that we
\nare closer than ever to bringing together
\nthe OEAQ and the AIC.<\/p>\n
Finally, I am also very proud of the AIC\u2019s
\nrecent establishment of the extremely
\ntimely and relevant President\u2019s Council on
\nDiversity. Our organization is dedicated to
\nproviding an atmosphere free of barriers
\nin order to promote equity and diversity.
\nIn doing so, we foster an environment
\nthat respects people\u2019s dignity, ideas
\nand beliefs, thereby ensuring equity and
\ndiversity throughout the organization
\nas well as the profession at large. The
\nPresident\u2019s Council on Diversity will assist
\nthe AIC Board in fulfilling its oversight
\nresponsibilities by reviewing and making
\nrecommendations to the Board. This will
\ninclude identifying barriers to participation
\nand proposing solutions to enhance the
\nparticipation of under-represented groups
\nin the full spectrum of AIC volunteer
\nopportunities, and supporting AIC\u2019s efforts
\nto promote membership and volunteerism <\/p>\n
to individuals from all demographic
\ngroups, with a focus on those groups
\nwhere under-representation is an issue.
\nIt will be the Council\u2019s responsibility to
\nadvise AIC volunteer leadership and staff
\non issues that are specific to diversity;
\nto promote and champion transparency
\nand accountability in volunteer recruitment
\nand development activities; to review, as
\nnecessary, information to be posted to
\nmembers and\/or stakeholders, including
\ncalls for volunteers; and (from time to
\ntime) to assume such other responsibilities
\nas may be delegated by the Board. <\/p>\n
It is an ongoing process, but we are
\ndefinitely headed in the right direction.
\nWe have had stumbles in the past and we
\nmay have more in the future, but it is how
\nwe learn from those stumbles that will
\nmake the difference as we continue to
\nevolve and grow. <\/p>\n
Volume 65 | Book 2 \/ Tome 2 | 2021 9Return to CONTENTS<\/p>\n