Question about Canadian appraisal standards

[Vernon Martin]

This is a question for any Canadian appraisers who might be on this forum.

In the last couple of years I have reviewed five Canadian appraisals of vacant land, each signed by an appraiser with either an AACI designation (Appraisal Institute of Canada) or MRICS designation.

I was surprised to see none of the reports estimate an "as is" value (as required in the U.S. by FIRREA) or disclose extraordinary assumptions (as required in the U.S. by USPAP).

Are these items not required in Canadian appraisals, or were these just deficient appraisals?

 

[Terrel L. Shields]

Not required

 

[Lloyd Bonafide]

Appraisals in Canada? I don't know - that's pretty much the Third World.

 

[Roy Somers]

All members of The Canadian National Association of Real Estate Appraisers (CNAREA) abide by USPAP. The Appraisal Institute of Canada (AIC) have they're own private standards they refer to as CUSPAP.

 

[Pittsburgh Pete]

This is a question for any Canadian appraisers who might be on this forum.

In the last couple of years I have reviewed five Canadian appraisals of vacant land, each signed by an appraiser with either an AACI designation (Appraisal Institute of Canada) or MRICS designation.

I was surprised to see none of the reports estimate an "as is" value (as required in the U.S. by FIRREA) or disclose extraordinary assumptions (as required in the U.S. by USPAP).

Are these items not required in Canadian appraisals, or were these just deficient appraisals?

Please clarify--if they are valuing vacant land, what value other than "as is" are they providing?

 

[Vernon Martin]

In the latest appraisal I've read, 190 acres in rural north Saskatchewan, the appraiser based his value on the undisclosed extraordinary assumptions of:

1. A zoning change to commercial zoning.
2. That the land had already been legally subdivided.
3. Approval of a final plat map.

None of these things have happened, but this was not disclosed in the report. The value was based on the sellout of residential lots which have not yet been legally created. Current zoning allows only two to four residences on the entire 190-acre site.

It's not my intent here to criticize Canadian appraisers. I like Canadians; they're like Americans, but nicer.

I'm just curious about the rules they have to follow and where to turn to in Canada for a realistic "as is" appraisal.

I have a client that lends internationally, and I need to keep up with the differences in appraisal practices in other countries. Since Canada is their leading foreign source of loan applications, I need to know how to search for Canadian appraisers willing to comply with American appraisal standards.

U.S. appraisal standards appear to be the highest in the world; none of the foreign appraisals I read measure up to them.

 

[Roy Somers]

Vernon, go to the CNAREA web site at www.cnarea.ca - then go to the find an appraiser tab and submit query from there. Search for an appraiser in Saskatchewan with a Designated Appraiser Commercial (DAC) designation. That will get you a USPAP complient appraiser. I also know of a firm of appraisers in Lloydminster, Alberta that are CNAREA certified and licensed and do work on the Sask side as well. CNAREA has a reciprocity agreement with NAIFA in the USA. CNAREA's DAC designation is the equivalent of NAIFA's IFAS designation. Hope this helps.

 

[dobie]

Okay, now that we've dealt with this in a professional adult manner anybody got any good Canadian jokes?

 

[Vernon Martin]

Okay, now that we've dealt with this in a professional adult manner anybody got any good Canadian jokes?

Funny you should ask. The best Canadian jokes are about New Jersey:

A couple of New Jersey hunters are out in the woods when one of them falls to the ground. He doesn't seem to be breathing, his eyes are rolled back in his head. The other guy whips out his cell phone and calls the emergency services. He gasps to the operator: “My friend is dead! What can I do?”

The operator, in a calm soothing voice says: “Just take it easy. I can help. First, let's make sure he's dead.” There is a silence, then a shot is heard.

The guy's voice comes back on the line. He says: “OK, now what?“

Or how about this one:

How do New Jersey hunters shoot bears?

They put the bear in the front seat of the Cadillac and then fire the gun point-blank from behind.

 

[dobie]

Funny you should ask. The best Canadian jokes are about New Jersey:

A couple of New Jersey hunters are out in the woods when one of them falls to the ground. He doesn't seem to be breathing, his eyes are rolled back in his head. The other guy whips out his cell phone and calls the emergency services. He gasps to the operator: “My friend is dead! What can I do?”

The operator, in a calm soothing voice says: “Just take it easy. I can help. First, let's make sure he's dead.” There is a silence, then a shot is heard.

The guy's voice comes back on the line. He says: “OK, now what?“

Or how about this one:

How do New Jersey hunters shoot bears?


They put the bear in the front seat of the Cadillac and then fire the gun point-blank from behind.

OK so where's the jokes?