Disclaimer: The opinions expressed on the AIC exchange are those of the authors and do not reflect the opinions or positions of AIC. Readers are encouraged to discuss the ideas and contents of those blog/articles on-line and to share their own opinions through the comment section below.

Rent review: does the existing lease matter?

LEGAL MATTERS Rent review: does the existing lease matter? By John Shevchuk, Barrister & Solicitor, C.Arb, AACI (Hon) When reviewing rent under a lease, does the decision-maker rely upon the terms and conditions of the existing lease or is there another reference point? The answer depends, of course, on the wording in the lease and can turn on some fine distinctions. General principles...

Green Home Appraising – A Developing Market Segment

By Preston Hartwig, M.A., RFPP, AIC Candidate Member, Red River Group, Swan River, MB In August 2017, the Canadian Government’s Build Smart – Canada’s Buildings Strategy was released. This strategy will lead to changes in the building code which will require all new homes to be ‘net zero ready’ by 2030. Along with changing consumer attitudes and financial institutions looking...

Real Property Appraisal Standard Rules: Stating, Describing and Analyzing Data

PROFESSIONAL PRACTICE MATTERS Real Property Appraisal Standard Rules: Stating, Describing and Analyzing Data By Grant S. Uba, AACI, P.App, Fellow Member, Investigating Sub-committee As a new member of the Investigating Sub-committee, Co-chair Kim Maber, AACI, P.App advised me of the most common Real Property Appraisal Standard issues found by members of the committee in reports subject to investigation. The most common issues have...

Appraiser Duty of Care – Lessons Reinforced Royal Bank of Canada v. Westech Appraisal Services Ltd.

LEGAL MATTERS Appraiser Duty of Care – Lessons Reinforced Royal Bank of Canada v. Westech Appraisal Services Ltd. By John Shevchuk, Barrister & Solicitor, C.Arb, AACI (Hon), R.I.(B.C.) The Supreme Court of British Columbia decision in Royal Bank of Canada v. Westech Appraisal Services Ltd. 2018 BCSC 473 (Westech Appraisal) delivered on March 23, 2018 provides an excellent case study on the scope of...

Improve your appraisal writing skills

Improve your appraisal writing skills By John Peebles, AACI, P.App, (RPF Ret.). John currently practices real estate consulting and valuation as the principal of Land Ethic Consulting Ltd., Victoria, BC “Give us the tools and we will finish the job.”  (Winston Churchill, February 1941) Real estate appraisers rely on a primary communication tool – technical writing – to clearly explain our opinions to...

Canada’s National Housing Strategy

Canada’s National Housing Strategy By Debbie Stewart, Vice President of Affordable Housing, CMHC Housing is at the centre of a vigorous debate about the kinds of communities we want to have in this country. Daily headlines remind us of the affordability pressures many Canadians are facing, especially in Toronto and Vancouver. In June 2016, the government asked CMHC to lead the development...

Accelerating innovation in commercial real estate

Accelerating innovation in commercial real estate By Colin Johnston, MBA, AACI, P.App, FRICS, President of Research, Valuation and Advisory at Altus Group Virtually every industry is currently working to create greater value through process efficiencies, better data and analytics, and new applications that help to streamline business and commercial real estate (CRE) is no different. In an article I wrote last...

Are property taxes reflected in a residential building’s market price?

Property taxes in most Canadian municipalities now constitute a significant part of home ownership costs. Normally, in assessment or appraisal theory, it is stated that home values or sales prices drive assessment values, which, in turn, drives the level of property taxes to be paid given various mill rates. But, is it possible that the inverse may exist and...

Professional Practice Matters l Market Rent Reports: Why requests are increasing and what AIC Members must do to mitigate their risk

With the advent of new Office of the Superintendent of Financial Institutions (OSFI) regulations implemented in January 2018, the landscape of the federally regulated lending world has altered. A new minimum qualifying rate, also called a ‘stress test,’ is now required for uninsured mortgages, i.e., those mortgages where the borrower has 20% or more of the value of the...

Market Outlook: Canadian commercial real estate is poised for a tech upgrade in 2018

The past year brought with it considerable political and economic uncertainty for Canada, as many watched the US economy grow under a low inflation environment. Moving into 2018, the Canadian commercial real estate market appears to be capitalizing on opportunity. With supremely competitive markets in Toronto and Vancouver, major pension funds have consistently looked to overseas markets for prime investment...