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!

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

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.

Please contact Karen Allen at hq@cnarea.ca for details, and insurance quotes.