An agreement on the fee charged for completing the appraisal assignment and identification of the party responsible for making the payment should be negotiated prior to starting the appraisal assignment. As mentioned above, the fee depends on the complexity of the appraisal assignment.
If the appraisal report is required in an urgent matter, there may be higher costs charged.
Purpose of the Appraisal Assignment:
Outlines that the purpose of the appraisal is to establish a market value, either Current, Retrospective or Prospective. The purpose of the appraisal states what value is being estimated in response to the Client’s intended use or needs.
Intended Use of the Appraisal Assignment:
Must identify what you intend to use the valuation report for (e.g. mortgage financing, refinancing, power of sale, divorce, relocation, assessment appeal, estate planning, etc…). This allows the appraiser to engage in the proper scope of work that will be required and provide any specialized advice necessary to support your intended use.
Intended User(s) of the Appraisal Assignment:
Defines to whom the appraiser can expect to provide a copy of the appraisal report to.
If there is more than one lender, it must be stated in the original appraisal assignment request.
The Client is not necessarily the one who pays for the appraisal report. More specifically, the person ordering the appraisal report is the Client, as per Appraisal Institute of Canada (AIC) Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP). At times, there may be more than one Client involved, for example; If a Mortgage Broker orders an appraisal and the appraisal report will be sent to a Lending Institution, then there are two Clients. The Client ordering the appraisal is the primary Client, and the Lending Institution receiving the appraisal report is the Second Client being the end-user. Anyone wishing to obtain a copy of the appraisal report including the home-owner, must contact the appraiser’s Client(s) as well as the appraiser, and obtain approval in writing from all of the Client(s) and the appraiser, in order to receive a copy of the appraisal report. Any third party wishing to receive a copy of the appraisal report must obtain permission from the Client(s) and the appraiser in writing.
The Client(s) and the appraiser are not obligated nor authorized to provide a copy of the appraisal report to the home-owner or any third party without written consent by all of the parties involved. However, for a nominal charge ,you can obtain an information copy (only information about the subject property, excluding reference to third parties, excluding the digital signature(s), and excluding the market value) if approved in writing by the Client(s) and the appraiser. The Client(s) and appraiser are not permitted to provide a copy of the appraisal report to any third party or the home-owner without written consent by the Client(s) and the appraiser. Appraisal reports are normally sent to the Client(s) by way of email with a security digital signature attached which is the policy of most lending institutions.
The exception to this rule is when a homeowner hires the appraiser directly. In these cases, the appraiser may stipulate how the appraisal report can be used and for what purpose.
For further clarification please contact the Appraisal Institute of Canada (AIC).
Type of Appraisal Assignment and Appraisal Report:
The type of property being appraised and the complexity of the appraisal assignment will typically determine the type of report that will be required as well as the corresponding appraisal fee.
An appraisal report leads the reader from the definition of the appraisal problem through the analysis of relevant data to a final estimate of market value.
Forms Reports are typical in the valuation of residential and small rental (1 to 4) unit properties.
Short Narrative Reports set out the key salient facts and conclusions in a summary narrative format.
Full Narrative Reports set out in greater detail the research undertaken and the conclusions.
Effective Date of the Appraisal Report:
This can be the date of inspection or any other reasonable date in the circumstances. The date can be (“Current”), or (“Retrospective”) which is the past, or (“Prospective”) which is the future.
Assumptions Made in the Analysis and Limiting Conditions that may impact the Value:
Assumptions and Limiting Conditions should be discussed in advance and confirmed in writing by the appraiser as being appropriate for the valuation.
Conflict of Interest:
The appraiser must disclose any conflict of interest prior to accepting an assignment or as soon as uncovered once the appraisal assignment has started. Depending on the nature of the conflict, the appraiser may need to decline an appraisal assignment.
Due Date of Appraisal Assignment:
This is the date that the final valuation report is expected to be delivered. The appraiser is not liable for damages if there is a delay in completing the valuation report caused by the Client(s), the homeowner, the builder, or the real estate sales persons in providing access to the subject property, or if information required to complete the assignment was withheld by any of those parties.
This is the designated member’s customary and usual certification contained within the body of the appraisal report which is the appraiser’s acceptance of responsibility for the appraisal and the contents of the appraisal report.
Metrowide Appraisal Services Inc.
345 Renfrew Drive Suite 201
Markham, Ontario L3R 9S9
Telephone: 905.479.4400 Extension 1
Metrowide Appraisal Services Inc. Copyright 2014