2019

August 2019
Memo To All Members Regarding July 2019 Bylaw Changes

As we continue to update the Associations By-Laws and Policies and Procedures we are advising you of changes to the CNAREA By-Laws. The changes affect Article 7 – Complaints against Members, Reprimand, Suspension, and Expulsion. At the 2019 AGM changes to Article 7 were voted upon by the membership. These latest changes improve the structure and wording of this procedure but do not deviate from what was presented and the original intent. They do however ensure that Article 7 is in line with norms and practices that exist with other organizations and associations.

These recent changes have been approved by the Board of Directors and as indicated in the CNAREA By-Laws will be presented to the membership at the next AGM for approval. In meantime they will take affect immediately. Should the membership vote against the changes at the next AGM then the previous wording for Article 7 will be reinstated.

August 2019
Fall Courses Now Available, click here to view the schedule.

August 2019

Attention: CNAREA Members

Volatility, uncertainty, complexity, and ambiguity – do these words describe your world of mobility management? You’re not alone. How do you manage these realities while preparing for the future?

In such an environment, the need for organizations to be increasingly agile and structured to deliver superior cross border talent solutions has never been more important. And, as mobility professionals grapple with these realities, creative and transformational solutions are in high demand.

I invite you to join your industry colleagues at the Canadian Employee Relocation Council’s (CERC) National ConferenceSeptember 15-17 – Niagara Falls Ontario, where we’ll tackle these issues and discuss strategies to Future-Proof your mobility programs.

As a CNAREA member, I would like to offer you exclusive pricing for our conference. Please enter the promo code – 2019CNAREA – when you register here.

With a stellar line-up of speakers, including Cheryl Cran, a future of work and change leadership expert, this is the industry event of the year. You’ll learn how other leading organizations, such as CGI, IBM, and Manulife, are responding to the growing complexity of mobility management and get insights into future trends.

Expand your reach in the mobility community by joining us in Niagara Falls, one of Canada’s most famous tourist destinations! And with the strength of the US dollar, it’s a great time to visit Canada and enjoy significant savings.

Are you ready to shape the future of mobility?

Register Today!

All the best and I look forward to seeing you there.

Stephen Cryne
President & CEO
Canadian Employee Relocation Council

Canadian Employee Relocation Council

April 2019

A recertification course will be held on Saturday, May 11, 2019 between 9:00 am and 4:00 pm (approximate times to be clarified).

( Collège Notre-Dame-de-Foy), Quebec

Book this date on your schedule and we will send you more information shortly. The registration link is not ready and you will receive it soon.

2018

November 2018

FAQ – 3 Years Prior Service:

Q: Is there a specific location within the appraisal report for the statement pertaining to the three (3) years prior services on the subject property?

A: Yes, the USPAP requires the disclosure for prior services to appear in the “Certification” of the appraisal report. The Conduct section of the ETHICS Rule states in part:

“If known prior to accepting an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in each subsequent report certification…. any services regarding the subject property performed by the appraiser within the three-year period immediately preceding acceptance of the assignment, as an appraiser or in any other capacity.”

SOURCE: http://appraisal.answerbase.com/2543307

Also, if an appraisal report is being completed by a Candidate Member, and their Supervisory Appraiser, each signatory is required to have a statement pertaining to the provision of services.

i.e.: If the Candidate Member signing the appraisal report has not provided services on the subject property within the three-year period immediately preceding acceptance of the assignment, but the Supervisory Appraiser signing the report has, there must be a statement describing both situations, in the report “Certification”. If both the Candidate Member and Supervisory Appraiser either have or have not provided services, there must be statements that reflect the situation.

Examples:

Situation #1 – No services provided by the Candidate Member, but services provided by the Supervisory Appraiser:

“The Candidate Member has not provided services of any kind, on the subject property within the three-year period immediately preceding acceptance of this assignment, however the Supervisory Appraiser has provided services on the subject property within the three-year period immediately preceding acceptance of this assignment.”

Situation #2 – Services provided by the Candidate Member, but not by the Supervisory Appraiser:

“The Candidate Member has provided appraisal services, on the subject property within the three-year period immediately preceding acceptance of this assignment, however the Supervisory Appraiser has not.

Situation #3 – Services provided by the Candidate Member, and by the Supervisory Appraiser:

“Both the Candidate Member and the Supervisory Appraiser have provided services on the subject property within the three-year period immediately preceding acceptance of this assignment.”

Situation #4 – No Services provided by the Candidate Member, nor by the Supervisory Appraiser:

“Neither the Candidate Member nor the Supervisory Appraiser have provided services of any kind on the subject property within the three-year period immediately preceding acceptance of this assignment.”

Appraisers are reminded to refer to your clients’ Terms of Reference, particularly when dealing with the permission or the withholding of permission to take photos, etc. If an occupant withholds permission to take photos of adverse influences resulting from the manner in which the plants are grown as noted above, you must be aware of your responsibility to follow the TOR, and more importantly the USPAP requirements to gather appropriate information about the subject property to produce credible results.

It is our view that our members must use sound judgment to determine whether to report the presence of the plants in accordance with these criteria. To the extent there are evidence-based valuation concerns, they should be reported. If the number of plants and their location does not suggest that secondary effects are a risk, then great care must be taken before the presence of the plants should be disclosed in order to avoid transgressing the legal rights of the property owners, or residents.

The factors to be taken into account likely include whether the plants are growing indoors (outdoor growing does not come with the same concerns), the number of plants, the location of the plants, their size, the amount of odour, indications of any rewiring, moisture levels in the vicinity, the presence of mould, altered ventilation and so on.

We foresee three types of circumstance relating to this issue:
(a) The presence of plants is innocuous, and it is obvious that there are no deleterious impacts on the property structure. This may include where there is a small plant on a window sill, or plants growing outside. In these circumstances, it is not necessary to report their presence.
(b) There are several mature plants growing inside a dwelling and, while there is no evidence of structural, wiring, or ventilation modifications, there is significant odour and it is possible the indoor cultivation has had secondary effects (mould, unseen alterations etc.).
(c) There is evidence of wide scale current or past indoor cultivation, which is evident as a result of changes to the wiring, ventilation and/or structure in the residence, as well as the presence of multiple plants.

Following discussions with some of the national lenders, AMC’s, other industry stakeholders, the Board of Directors has drafted an Extraordinary Assumption that may be used in your Appraisal Reports, in the event there is indoor cultivation and an indication of some risk of secondary deleterious effects. The statement is to be modified as needed to suit any specific situation, or property.

Extraordinary Assumption Example:
This appraisal and appraisal report are being completed under the Extraordinary Assumption all necessary measures have been taken to protect the physical structure and integrity of the subject property improvements from any deleterious effects associated with the indoor cultivation of cannabis plants. Observations did not indicate any apparent issues relative to abnormal temperature variance, moisture or mold, however, those observations were based on a non-invasive viewing and the appraiser is not qualified to detect such issues or substances in any way through education or experience. The presence of such issues or substances could affect the value and/or marketability of the subject property. The client is urged to retain the services of an expert in these fields if such issues are of concern. The opinion of value reported herein is predicated on the property being free and clear of these issues and all other environmental contamination.

If you have any questions or concerns, please don’t hesitate to contact me.

Rob MacDonald – CEO

DAR-Certified Appraisal Reviewer/IFA
Canadian National Association of Real Estate Appraisers

Phone: 888.399.3366 ext. 2

September 2018

Marijuana Plants at a subject property:

With the upcoming legalization of growing Cannabis in homes, it is expected to see an increase in the number of properties appraisers will encounter cannabis plants. One major concern of the Association is the safety of our members, and all are cautioned to be prepared to take the necessary steps to ensure the safety of yourselves, and any employees or sub-contractors. It is recommended as before, that you carry proper PPE, and ensure that you are not exposed to hazardous materials or situations, in the event that there is a risk of mould resulting from excessive indoor cultivation.

Our members are under potentially conflicting legal duties when it comes to the presence of cannabis plants. First, the disclosure of cannabis plants would, if unwarranted, potentially lead to breaches of privacy laws and if the owner uses the plant for medicinal purposes, discrimination under Human Rights Law. The presence of the plants themselves is not necessarily a cause for disclosure. However, if the plants are cultivated indoors in a manner which leads to potential valuation concerns – with illegal wiring, excessive moisture, pervasive odour, mould, ventilation or structural damage – then there is a duty to report those conditions insofar as they impair the property value.

In the latter case, it is also expected that the appraiser will make comments, and include appropriate photos as to the evidence of any structural modifications, damage caused by moisture, irrigation systems, ventilation, wiring etc. It is well known that in the past illegal growing indoor growing operations have led to many of these issues and in some cases cannot be properly inspected by the appraiser without invasive examinations of the property, which are outside the scope of our appraisals.

Appraisers are reminded to refer to your clients’ Terms of Reference, particularly when dealing with the permission or the withholding of permission to take photos, etc. If an occupant withholds permission to take photos of adverse influences resulting from the manner in which the plants are grown as noted above, you must be aware of your responsibility to follow the TOR, and more importantly the USPAP requirements to gather appropriate information about the subject property to produce credible results.

It is our view that our members must use sound judgment to determine whether to report the presence of the plants in accordance with these criteria. To the extent there are evidence-based valuation concerns, they should be reported. If the number of plants and their location does not suggest that secondary effects are a risk, then great care must be taken before the presence of the plants should be disclosed in order to avoid transgressing the legal rights of the property owners, or residents.

The factors to be taken into account likely include whether the plants are growing indoors (outdoor growing does not come with the same concerns), the number of plants, the location of the plants, their size, the amount of odour, indications of any rewiring, moisture levels in the vicinity, the presence of mould, altered ventilation and so on.

We foresee three types of circumstance relating to this issue:
(a) The presence of plants is innocuous, and it is obvious that there are no deleterious impacts on the property structure. This may include where there is a small plant on a window sill, or plants growing outside. In these circumstances, it is not necessary to report their presence.
(b) There are several mature plants growing inside a dwelling and, while there is no evidence of structural, wiring, or ventilation modifications, there is significant odour and it is possible the indoor cultivation has had secondary effects (mould, unseen alterations etc.).
(c) There is evidence of wide scale current or past indoor cultivation, which is evident as a result of changes to the wiring, ventilation and/or structure in the residence, as well as the presence of multiple plants.

Following discussions with some of the national lenders, AMC’s, other industry stakeholders, the Board of Directors has drafted an Extraordinary Assumption that may be used in your Appraisal Reports, in the event there is indoor cultivation and an indication of some risk of secondary deleterious effects. The statement is to be modified as needed to suit any specific situation, or property.

Extraordinary Assumption Example:
This appraisal and appraisal report are being completed under the Extraordinary Assumption all necessary measures have been taken to protect the physical structure and integrity of the subject property improvements from any deleterious effects associated with the indoor cultivation of cannabis plants. Observations did not indicate any apparent issues relative to abnormal temperature variance, moisture or mold, however, those observations were based on a non-invasive viewing and the appraiser is not qualified to detect such issues or substances in any way through education or experience. The presence of such issues or substances could affect the value and/or marketability of the subject property. The client is urged to retain the services of an expert in these fields if such issues are of concern. The opinion of value reported herein is predicated on the property being free and clear of these issues and all other environmental contamination.

If you have any questions or concerns, please don’t hesitate to contact me.

Rob MacDonald – CEO

DAR-Certified Appraisal Reviewer/IFA
Canadian National Association of Real Estate Appraisers

Phone: 888.399.3366 ext. 2

September 2018
CNAREA is proud to offer CNAREA members a discounted rate, for the Residential Cost Approach Certification online class, that is set with CoreLogic/Marshall & Swift. At this time, CNAREA members will be able to reserve their opportunity to receive the discounted rate for the course. The course is a 9 module, self-paced program that cover several topics including; Single and Multi-family Residences, Quality of Construction, Obtaining Base Costs, Lump Sum Adjustments, Interpolation, Depreciation, Segregated Costs, and the mechanics of Form 1007. 

Once registered for the course, students are able to login and out as often as they like, for the 30 day active period. Upon completion of the course, students will be required to successfully complete a final Residential Cost Approach Certification Test (Passing Grade is 80%).   For those members who require CNA202 – Residential Cost Approach, this online course along with the 2-day in-class session comprises the entire Cost Approach Course.  For those members who have already completed the requirements for CNA202 (Old 6.7 course), this on-line offering from CoreLogic will earn 8 hours of continuing Education requirements.

Please reserve your discount code hereAs of now, there has not been a renewed discount, but you may still reserve a spot to receive the code once it’s available. After you reserve your discount code (once it’s available), you will receive an email with your code and a link to the CoreLogic site for you to purchase the course. 

Please be sure to receive your Course Discount Code before you register for this online portion of the Residential Cost Approach Certification Course, or you will end up paying the full cost of the course.

February 2018
CNAREA is thrilled to announce a new partnership with HONDROS Education Group, to provide CompuCram® to our Candidate Members, in preparation for the DAR Exam.

CompuCram® is an on-line, self-paced exam prep course that helps to prepare you for challenging the DAR Exam.  Simply use the CompuCram® link, to go to the Registration page for the National Appraisal Exam Prep, and purchase your access.  Hondros will do the rest.

This is an exciting opportunity for our members, and we are pleased to announce that we are the only appraisal association in Canada offering a licensing exam prep course.  Check out this short video from HONDROS Education Group to learn more about CompuCram®.

Take advantage of this unique opportunity to gain the confidence you need to pass the DAR Exam the first time!

2017

December 2017
We no longer have exam days.  Once you are approved to write an exam to obtain your Professional Designation you will require a Proctor. 

August 2017
We have had several conversations recently with various industry stakeholders and we would like to encourage you to consider the following:

BLENDED SITE ADJUSTMENTS: In recent conversations with the Bank of Montreal, BOM has stated that the blended adjustments for site value are no longer acceptable to them, and they are requesting that adjustments, and the comments associated with them address the specific components that contribute to the adjustment(s).

Please ensure that when completing appraisal assignments for this client, that the site adjustments and comments reflect their requirements.

TENANT OCCUPIED PROPERTIES: The question about the ownership rights being appraised, in tenant occupied properties, keeps coming up. If a property is tenant occupied, then the owner has surrendered part of their ownership rights, (the right to occupy) and therefore no longer has the full bundle of rights (Fee Simple). In such a case, the normal course of action is for the appraiser to consider the LEASED FEE interest of the property, and appraise it as such. This would typically require the use of tenant occupied comparable sales for consideration, etc. HOWEVER some clients (lenders such as BMO) require that the Fee Simple interest in a property be the basis of the appraisal assignment. In such cases, the appraiser is still to indicate that the property is Tenant Occupied, however the ownership rights being appraised are FEE SIMPLE. The appraiser simply needs to include a statement such as: “At the request of the client, the subject property is being valued considering the Fee Simple interest, and the Lease Fee interest in the property is not be addressed in this appraisal assignment.” See USPAP FAQ #217

July 2017

Now Offering Non-Fee Appraiser Residential and Commercial Designations

As part of our continuing evolution, we pleased to be able to offer Non-Fee Appraiser Residential and Commercial Designations (DAR and DAC).  Effective Immediately, active DAR or DAC Designated members who are pursuing opportunities as Non-Fee Appraisers will be able to do so.  Working through our insurance partners at PROLINK, we are able to provide full insurance coverage to our Non-Fee Appraiser members at a greatly reduced annual rate.

July 2017

New Complimentary Appraiser Legal Advice Hotline

As part of our continuing evolution, CNAREA, in partnership with ProLink, Sovereign General Insurance, and Dolden Wallace Folick LLP are pleased to announce the creation of a new complimentary Appraiser Legal Advice Hotline.

New Complimentary Lawyer Hotline for Your Clients

In addition to the coverage provided in our members’ policy, ProLink is very pleased to announce the launch of a new complimentary risk-management service now available to you.

Effective immediately, you will have access to a toll free hotline that will put you in touch with a lawyer who has experience in professional liability for real estate appraisers generally, and specifically, in the defence of claims made against real estate appraisers.

This service is only available to those insured under this program.  You can access this hotline by calling 1-866-891-0366.

Legal Hotline Information

2016

December 2016
In recent months, our members have seen an increase in requests from AMC & Lenders, for Stand-Alone Market Rent Reports.

We have been in conversation with some of our members about the format of these reports, and thanks to Mike Chekaluk (DAR-Certified Appraisal Reviewer), of Cityline Appraisals Inc., we now have templates available for use. There are both REPORT-PRO and CLICKFORM templates completed and Mike has graciously agreed to allow our members to use the templates he created. If you have clients that use other formats, you will need to create something for that format.

We want to remind everyone that a Stand-Alone Market Rent report, is an opinion of value, and therefore is an appraisal. The report, as well as your research must comply with the USPAP Standards #1 and #2.

If you have any questions, please contact Rob MacDonald at CNAREA.

Clickform Template
Report Pro Template

June 2016
Restricted Appraisal Reports

If you are completing the following types of valuation assignments please note that we now have new report formats available for each. You must make your own templates for each of these report formats and the templates must be EXACTLY as indicated.

The new report formats have been added to the course book for course 4.3R and are listed below.

Contact the CEO for any further Information.

Restricted Appraisal Report format for:
Drive By Report
Desk Top Report
Foreclosure Report