FAQ – 3 Years Prior Service

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.”

To All CNAREA Members

Please be advised that CNAREA will be holding its Annual Mid-Term Board of Directors Meeting on Saturday November 17th, 2018 at the Hampton Inn Ottawa Airport beginning at 12:00 noon.

 

Please note that this meeting is open to Board Members and invited guests ONLY.  However if you have questions or issues of concern for the Board of Directors to discuss, please forward an email to Kevin Lonsdale at: executivedirector@cnarea.ca so that the issue can be placed on the agenda.

 

Thank you.

 

Discounted rate for the Residential Cost Approach Certification online class

CNAREA is proud to announce a new agreement with CoreLogic/Marshall & Swift that provides CNAREA members a discounted rate for the Residential Cost Approach Certification online class.  Effective immediately CNAREA members will be able to purchase the online class for the discounted price of $129 US.  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 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.

 

As an added bonus, CoreLogic has agreed to offer a 10% discount off any New Purchase or Renewal Purchase of their Marshall and Swift Cost Manual products.  (Book or Software)

 

Please ‘purchase’ your access code on the CNAREA Education webpage.  Upon registering for the course, your Discount Code will be forwarded to you, to allow you to purchase the course from CoreLogic.  Please be sure to receive your Course Discount Code before you register for this online portion of the Residential Cost Approach Certification Course.

 

2018 Annual General Meeting Voting Results

June 01, 2018

On Tuesday May 29, 2018 CNAREA held its Annual General Meeting, with the members voting on 3 proposed By-Law Changes, as well as holding elections for the position of President, and the Board of Directors. All the By-Law changes proposed, were accepted by the membership.

As for the election, our incumbent President, Mr. Jim Carty was nominated for the position again this year, and having received no other nominations, Jim was re-elected to another 2-year term. Congratulations Jim!

We also held elections for the 6 elected, voting positions on the Board of Directors. We received 9 nominations this year. All the sitting elected Directors: Michel Beaudoin, Brad Cable, John Carty, Stefan Epstein, Rob MacDonald and Robert Ouimet were nominated again, as well as 3 others: Mike Chekaluk, Steve Coull, and Gerhardt Klan.

As per the newly adopted By-Law with respect to the Term of Office of the Directors, the three top vote getters, John Carty, Rob MacDonald, and Stefan Epstein were elected to 2-year terms, and the next 3, Robert Ouimet, Michel Beaudoin, and Brad Cable were elected to 1-year terms.

Congratulations to all those nominated and elected. We are looking forward to an exciting year!

Proposed Bylaw Change

Proposed By-Law Amendment:

Our current structure of the Board of Directors has the President as serving a 2-year term, and all other elected Members on 1-year terms. This presents two issues that could pose some problems. It can be somewhat difficult for a new member of the Board to be effective in their first year, and secondly depending on the year, there may be wholesale changes to the composition of the Board. Obviously, this would make it difficult to have a smooth transition to a new Board. To help solve this issue, and provide for continued smooth transitions in years ahead, we are proposing a change to the term of office for Directors to be 2-year terms, with 3 of the Directors’ terms ending in any single year. This year (2018), all Directors’ terms end, and we will be electing 6 Directors. The proposed By-Law change will allow for 3 Directors to be elected to 2-year terms, and 3 to 1-year terms. Then in 2019, the 3 positions having 1-year terms would be up for election again, and these 3 positions would then be 2-year terms as well. Therefore, every year we will have 3 Director positions up for election. This would enable a smoother transition for new Board members, and greater continuity from year to year. With this in mind, we are proposing a change to Section 3-3 of the By-Laws.
With respect to the election of a President, By-Law Section 3-5 remains unchanged.

New Logo

Special Announcement

CNAREA is pleased to announce the launch of our new logo. Over the past year we have had a lot of feedback as to what members would like to see changed and the direction they would like to see Association go. The first and most frequent comment was that we needed to update the website. With stage 1 of the website completed we continue to plan the next steps.
The next most frequent question or comment was; are we looking at changing the logo? As such we asked members for logo ideas and as a result we had over 80 suggestions. The top 10 submissions were presented to the Board of Directors and the entry from Peter Grouios was chosen. The website and new logo are part of a rebranding that a many of our members have been asking for. With the speed in which the Real Estate landscape in Canada is changing it is imperative that CNAREA be able to change with it. Our goal is to ensure that we can quickly adapt to ongoing changes and rebranding is part of that strategy.
Below is the official logo but you will see it in several forms depending on how it is being used. If you have any questions on using the logo please feel free to contact Rob MacDonald or Kevin Lonsdale.

New Partnership With HONDROS Education Group

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!

We no longer have exam days

We no longer have exam days.  Once you are approved to write an exam to obtain your Proffessional Designation you will require a Proctor.  Below is a list, please click on link below to see who qualifies as an acceptable proctor.

Acceptable Exam Proctors for Designation Exams

Conversations Recently With Various Industry Stakeholders

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 Leased Fee interest in the property has not been addressed in this appraisal assignment.”    See USPAP FAQ #217

Find an Appraiser

FIND AN APPRAISER: Some lenders, and AMC’s are having difficulty finding appraisers in certain market segments, and searches on the website are not producing results reflective of the areas of service of our members.  Please log-in to your profile on the website, and update your coverage areas so that current and prospective clients are able to find you!