Book 4 - Appraisal Institute of Canada

It should be clear to the client when thedraft is delivered that, althoughwording or facts may be openfor discussion, values are not.and have the parties agree on thefactual content of the appraisal.The valuation section would notnecessarily be completed at thistime. It may be more difficultfor the parties to dispute thevalue later, if they have had anopportunity to review, commentand contribute to the reportedfacts of the property. Once thereport is finalized, if the facts of theproperty are called into question,it can often lead to a client orreader questioning the credibilityof the entire report, even thoughthe discrepancy would not have anyinfluence on the value.A change of wording in a reportwhen it is in a draft form is muchless complicated than a changeto a signed, sealed and deliveredreport. Think about explainingto a judge or the InvestigatingCommittee why a notation on yourappraisal report states ‘revised.’ Or,try explaining to the InvestigatingCommittee why there are twosigned appraisal reports issued onthe same property, on the sameday, with the same value, but thereis a variance in the wording andfacts between the two reports.The draft report may be providedin part or in whole, depending onthe intended use and user of thereport, along with the reasonableappraiser test. Each page that isprovided should be clearly markedwith ‘DRAFT – date.’ If more thanone draft is provided, mark ‘2 NDDRAFT – date.’ Keep either a hardcopy or a PDF copy of each draftthat is released. These become partof your work file (as required under4.2.9 with Comments 5.9 – withparticular attention to 5.9.4 and5.9.6). Never sign a draft report.Providing a draft report is abusiness decision that allowsthe client to contribute to and reviewthe report before it is finalized. Itshould be clear to the client whenthe draft is delivered that, althoughwording or facts may be open fordiscussion, values are not.When dealing with ‘drafts,’ takingsome of these precautionary stepsshould minimize the chances of acomplaint being submitted to theAppraisal Institute of Canada forinvestigation, with the referencedreport as evidence.Investigating CommitteeDavid Gabruch, AACI, P. App– ChairDeana Halladay, CRASheldon Rajeski, AACI, P. AppMichael Lee, AACI, P. AppDel Stebner, CRATrent Gelmici, AACI, P. AppMike Schulkowsky, AACI, P. AppDoyle Childs, AACI, P. AppStan Jugovic, AACI, P. AppDarell Thorvaldson, AACI, P. AppJohn Hutchinson, AACI, P. App,Special AdvisorGreg Wilkinson, AACI, P. App,Special InvestigatorTo contact this committee email:investigating@aicanada.caC a n a d i a nAppraiserE CVolume 51 • book 4 • 2007 valuateura n a d i e n 29