CPV Magazine 2017 – VOLUME 61 – BOOK 4Entries appear in original language

Lack of Strategic Property Tax Planning Leaves Assets at Risk of Underperformance

With the recent upward cycle in the commercial real estate (CRE) market, both property values and property tax disbursements are reaching record highs. As the CRE industry continues to attract capital at record levels, the competition for available assets and expectations for existing asset performance have never been higher. Property tax is the single largest operating expense affecting commercial...

Adaptive re-use of an historic church structure

*Adapted from a presentation made by Giovanni Geremia, maa, oaa, aaa, saa, mraic at the Appraisal Institute of Canada 2016 Annual Conference in Winnipeg “When we build, let us think that we build forever. Let it not be for present delight, nor for present use alone. Let it be such work as our descendants will thank us for; and let...

Rent Review Clauses: Market-Based or Not?

In a rent review under a lease, the lease must be read to determine the basis upon which the landlord and the tenant have agreed rent will be reset. Is the rent to be based on the market or upon other criteria established by the parties? To decide the question, principles of contract interpretation must be applied. General interpretation principles The...

Professional Practice Matters – Expert or arbitrator?

(Part of this article is reproduced with permission from The Advocate. ’A View From the Centre’ (2017) 75 Advocate  555) As appraisers, we are often retained to provide independent expert opinions on real estate valuation matters. In the adversarial process of litigation or arbitration, we are typically retained by one of the parties to a dispute; the expert report then...

Duty to the client versus duty to the court: What takes priority?

The fine line of lawyer involvement in the stages of drafting an expert report An AIC Member may be asked to prepare an expert report in anticipation of a dispute over real property, be it a marital dispute, a dispute between landlord and tenant, or a dispute with respect to the assessment or the expropriation of property. In this article,...

Legal Matters: Valuation of Reserve Lands Revisited

Introduction On May 18, 2017, the Federal Court of Canada – Trial Division rendered its decision in Hodgson v. Musqueam Indian Band, 2017 FC 509 . It is the latest judicial consideration of the valuation of reserve lands for rental purposes and, as one would expect, Hodgson relies upon the Supreme Court of Canada decision in Musqueam Indian Band v....

Passive approaches to low-energy affordable housing

Affordable housing providers are increasingly interested in energy-efficient housing models that can achieve improved levels of building performance in support of lower cost housing and better quality living environments. For many, the rising cost of utilities can make even the lowest-cost housing unaffordable, or force them to make hard choices between utilities, groceries and other basic needs. For housing...

Professional Practice Matters: How Complaints are Administered

We recently published articles giving advice on how to avoid a professional practice complaint. However, if you do enough appraisal work over a long enough time, it is quite likely that someone will launch a complaint against you. Usually, complaints come from the general public, often the owner of the property you appraised, or from lawyers or lenders, other...

An Appraiser’s Eye in the Sky

Unmanned Aerial Vehicles (UAVs), more commonly known as ‘drones,’ have increased rapidly in popularity over the last few years. As UAV technology has improved, learning to fly them has become easier, the quality of photos or videos that can be taken has improved, and the price of purchasing a good quality unit has decreased. As a result, UAVs have...

Time Adjustments: Why the average MLS® selling price should not be taken at face value

Although MLS® sales data is an important element of research used by appraisers, this article identifies the problems of using standard average MLS® board statistics to determine Time Adjustments in appraisal assignments. A CASE STUDY Below is a line of house sales for the years 2015 and 2016. This regression line (best fit) suggests that the houses are all the same....