Important Appraisal Facts You Should Know

• There is no licensing of appraisers in British Columbia. However, the industry is reasonably well self regulated and in general, most banks insist the appraiser be a designated member in one of the recognized appraisal organizations in Canada.
• The Appraisal Institute of Canada (AIC) is the largest of these organizations and is recognized by the Federal Government as the sole holder of the Canadian Standards. The minimum entry standard is now a Bachelor's Degree, preferably in Real Estate Economics. The AIC has mandatory errors and omissions insurance, active standard committees and a mandatory continuing professional development program.
• The estimation of market value can be very complex and difficult, particularly in markets where good data is not available. Therefore, you should always insist the appraiser you hire is a qualified member of the Appraisal Institute of Canada.

• The AIC has two working designations, Accredited Appraiser, Institute of Canada (AACI) and Canadian Residential Appraiser (CRA). In addition, the AIC has a Professional Appraiser (P.App) designation.
• The appraiser holding a P.App, AACI designation is not restricted in the types of property he or she can appraise.
• The appraiser holding a P.App, CRA designation is restricted to residential property up to a maximum of four units as well as single, undeveloped residential building sites.
• The determination of whether or not a property is "residential" is not always simple. For example, a home in a neighbourhood that is changing in use to multiple family or commercial may require an appraiser holding the senior P.App, AACI designation.

• Small farms zoned for agricultural use are not considered residential.
• The AIC has a mentoring program allowing appraisers holding a P.App, CRA designation to submit reports on commercial or agricultural properties under the guidance of a senior appraiser with a P.App, AACI designation, but the senior appraiser is responsible for the report. If no co-signature is present an individual could be in violation of AIC ethics and would be denied insurance coverage.