Book 4 - Appraisal Institute of Canada

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F r o m t h eC o u n s e l l o r ’ sD e s kB y R o b e r t P a t c h e t t , L L . B , C D ,A I C C o u n s e l l o r ,P r o f e s s i o n a l P r a c t i c eConflict of obligationsppraisal standards speakto conflicts in many ways.A conflict of interest isaddressed in Ethics Rule4.2.11, which, in essence, sets outthat any real or perceived conflictmust be declared and pre-approvalof a client obtained before youproceed. It may still be necessaryfor the appraiser to decline theassignment for other reasons thatarise out of the conflict of interestand a careful review of businesspractices should be undertakenin such circumstances. A conflictof obligation can also arise. ThePractice Notes at 12.8.5 set outsome of these circumstances.The purpose of this article isto discuss a more complicatedexample of a conflict of obligation.Let’s begin by assuming that youare a member in good standingwith the Appraisal Institute ofCanada (AIC), but that you arealso a member in good standingwith another like-minded appraisalorganization. There are manysuch groups including assessmentassociations, OEAQ in Quebec,agrology professions, or even anAmerican appraisal association.Much like AIC, each of theseother professional bodies wouldhave its own set of professionalstandards, bylaws and regulationsthat have become widelyrecognized and accepted by clientslenders, government bodies,and the courts, all of whom relyon individuals holding thoseprofessional designations.A most complicated conflictof obligation arises routinely outof these scenarios when dual32C a n a d i a nAppraiserVolume 51 • book 4 • 2007EvaluateurC a n a d i e nmembership is involved. At theoutset, you have two sets ofprofessional standards and rulesto which you must adhere whenpreparing reports. Writing in Volume50, Book 4 of the CanadianAppraiser (http://www.aicanada.ca/e/pdfs/Can _ App _ Vol _ 50 _ Bk _4 _ 14.pdf), Allan Beatty, AACI, P.App describes how the CanadianUniform Standards of ProfessionalAppraisal Practice (CUSPAP) willThere is no AIC‘hat’ to take offwhile you adhere toanother professionalassociation’srequirements.likely get you 90% towardssatisfying your client’srequirements, and that theremainder is about adding in whatis required by the other professionalstandards. Thus, it may be relativelysimple to resolve any disparityin the requirements of the twoprofessional bodies.Remember that appraisalstandards are minimum standardsand that exceeding these standardsis reasonable and occurs inmany appraisal reports, includingresidential appraisals.The problem becomes morecomplicated when you are askedby your client to complete somethingto a professional standardother than CUSPAP. As a memberof AIC, you have pledged to abideby AIC bylaws, regulations andstandards. Therefore, by yourpledge, there is no AIC ‘hat’ to takeoff while you adhere to anotherprofessional association’s requirements.You remain obliged toadhere to CUSPAP, and, as a professional,the onus rests with youto do so. This is the very least thatyour clients should expect fromyou and a very important aspectof professionalism that you shouldconvey to your client’s when theyinnocently ask that you disregardyour professional standards.CUSPAP obliges an appraiserto identify his or her membershipstatus in a report, and to certifycompliance with CUSPAP. Anappraiser is also obliged to setout when a report or parts thereofare not covered under an Errorsand Omissions insurance policy.Therefore, it is reasonable topresume that failure to do sowould be a breach of the CUSPAPethics.Finally, it may be that youwill have to choose betweenmembership in AIC and continuedadherence with AIC bylaws,regulations and CUSPAP, andmembership in another associationin order to remain professional andavoid the conflict of obligationsthat might arise from multiplememberships in like-mindedappraisal associations.
Critical datesThe following dates are provided as a reminder to AICmembers of critical dates throughout the year pertainingto CPD credits, dues and insurance obligations.Week ofNovember 12December 31July 31, 2008MEMBER DISCIPLINEDTHE APPRAISAL INSTITUTE OF CANADA advises that Mr.David G. Marshall, CRA of Grand Forks, BC, has been found incontravention of the Institute’s Code of Ethics and Standardsof Professional Practice. Sections contravened are:Canadian Uniform Standards ofProfessional Appraisal Practice (2002 Edition):Ethics Standard Rule: 1, 2, 4, 6, 9 and 13.The member, a designated CRA, completed an appraisalassignment on a commercial property without having had theappraisal report reviewed and counter-signed by an AACI. Asa result, the member has negated the mandatory insurancecoverage, has mislead the reader of the report by giving theimpression of professional qualifications that are not possessed,and has undertaken an assignment lacking the necessarycompetence.As a result of this conduct, Mr. David G. Marshall, CRA,has been given the discipline of Censure and education. Also,pursuant to the Consolidated Regulations of the AppraisalInstitute of Canada, costs have been levied.i n m e m o r i a mhe following membersof the Appraisal Institute ofCanada have passed away.On behalf of everyone connectedwith the Instituteand the profession, weextend our sincerest sympathiesto their families,friends and associates.Les membres suivantsde l’Institut canadien desévaluateurs sont décédés.Au nom de tous ceux quioeuvrent de près ou deloin au sein de l’Institutet de la profession, nousexprimons nos plussincères condoléancesà leurs familles, amis etassociés.Insurance Levy billings mailedto members.Insurance Levy payments due to SCMAdjusters Canada Ltd. (204) 985-1775.Annette Ethier [aethier@scm.ca]Candidates’ first deadline to report courseJohn Warren, AACI, P. AppNanaimo, BCA. George Oikawa,AACI, P. AppVancouver, BCJames Perry, AACI, P. AppSaskatoon, SKWilliam H. Mather,AACI, P. AppBurlington, ONEric Windeler, AACI, P. AppOakville, ONMichel Bourassa,AACI, P. AppMontreal, QCGuy Deslauriers, CRALachine, QCMarcus O’Malley,Candidate, Richmond,New Zealand2007 Jack WarrenScholarship recipientsJack Warren Education Trust Scholarshipsare available to individuals from acrossCanada pursuing careers in real estateappraisal. Congratulations go to TylerBeatty, of Kelowna, BC; Melissa Blais,of North Saanich, BC; Stephen Cullis,of Kamloops, BC; and Henry Wang, ofSurrey, BC; who were selected by the TrustCommittee as this year’s recipients of theJack Warren Education Trust Scholarship.Previous recipients include:2006 Daniel Shields, Sault St. Marie,Ontario2006 Dustin Lamoureux, Victoria, BC2006 Gordon French, Vernon, BC2006 Karen Taber, North Vancouver, BC2006 April Green, Vancouver, BC2005 Hlynn Kenny, St. John’s,Newfoundland2005 Charlotte Ciok, Vancouver, BC2005 Anthony Plumtree, Abbotsford, BCCongratulations also go to SamanthaSawyer, BC and Laina Chwelos, Albertawho won a free national conferenceregistration. The free registrations wererandomly drawn from the names of all pastJack Warren Education Trust recipients.The draw is made each spring and theindividuals are notified so that travelarrangements, if necessary, may be madein plenty of time.• All winners must be current members ofthe Appraisal Institute of Canada.• This prize does not include transportationor accommodation to/from/at theconference.• Winning conference registrations arefor the Jack Warren Educational Trustrecipient use only and are for the currentyear’s conference. They may not betransferred to another individual ordelayed to a future conference.• The registration fee will be reimbursedfollowing the conference uponconfirmation of attendance.For more information or to obtain anofficial application form, please contactthe British Columbia Association of theAppraisal Institute of Canada, #845- 1200 West 73rd Avenue, Vancouver,BC, (604) 266-8287, or visit the BCAssociation Appraisal Institute of Canadawebsite www.appraisal.bc.ca, click onpublications, brochures and the JackWarren Educational Trust.C a n a d i a nAppraiserE CVolume 51 • book 4 • 2007 valuateura n a d i e n 33
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Book 4 - Appraisal Institute of Canada

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