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Crowded streets with plenty of mayhem emphasized Mike’s appreciation of the need for rules.
globe 10,000 kms around and find Canadian laws
and law enforcement providing much stronger
public protection. The death rate in Canada is
lower, somewhat due to those pesky traffic
safety, health and other laws.
Appraisals are not a matter of life and death,
but a bad report may damage your pocketbook,
your reputation and our profession. Members of
the Investigating Committee are charged with the
responsibility to ensure that rules are followed for
the sake of public protection. Our volunteer time is
used to discern whether reports are in compliance
with CUSPAP. If reports are found deficient, our
primary purpose is to educate the member so that
our clients, and those relying indirectly on our
work, are well protected.
One of the common threads across most
investigations is finding little to no evidence
supporting the appraisal report. The expert
status of CRA or AACI confers broad discretion
on appraisers that is occasionally over-exercised.
Members make thick assumptions, thicker
adjustments that take them across thin ice (a
thought crossing my mind when my iceboat
blades sprayed water across ice estimated at 18
inches deep). Appraisers risk finances and their
reputations if they assume too much.
We continue to encourage members to
include more details and solid rationale in every
report, as well as supporting evidence in their
work files. At the very least, members must be
reminded to keep a complete work file consistent
with the ‘reasonable appraiser test.’
In a 2011 case at the Federal Court of Canada,
the valuation of cervids was under appeal. The
words of Justice Russell in that case summarize
a common weakness our investigators find in
appraisal reports:
[76] “Mr. Holland’s report is strong on assertions,
but thin on methodology and objective proof. It says
that Mr. Alsager’s animals are ‘valued higher because
of their genetics, size, smarts and proven performance
which is all proven in their records.’ Unfortunately, Mr.
Holland does not explain what ‘records’ he is referring
to, and he does not produce any such records or
explain why such records are not produced.” 2
Mr. Holland’s opus reminds us of our
professional responsibility to take reasonable
steps to ensure the information and analyses are
sufficient (CUSPAP 7.16). The use of artistic skills
is encouraged only when performed in harmony
with research and technical skills.
End notes
1
United Nations, Department of Economic
and Social Affairs, Population Division (2011).
World Population Prospects: The 2010 Revision.
Retrieved at http://esa.un.org/unpd/wpp/Excel-
Data/mortality.htm
2
Alsager v. Canada (Agriculture and Agri-Food),
2011 FC 1071 (CanLII), para 76 http://canlii.ca/
en/ca/fct/doc/2011/2011fc1071/2011fc1071.html
Investigating Committee
Mike Schulkowsky, AACI – Chair
Stan Jugovic, AACI
Joe Kireta, AACI
Robert Minielly, AACI
Larry Brewer, AACI
David Bush, AACI
Bob Mason, AACI
To contact this committee, email:
investigating@aicanada.ca
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