CANADIAN UNIFORM STANDARDS

OF PROFESSIONAL APPRAISAL PRACTICE

Effective Date January 1, 2022

Appraisal Institute of Canada

403 ~ 200 Catherine Street
Ottawa, Ontario K2P 2K9
 TABLE OF CONTENTS

INTRODUCTION................................................................................................................1
ORGANIZATION AND COMPLIANCE..................................................................................2
DEFINITIONS ....................................................................................................................3
ETHICS STANDARD - RULES ............................................................................................15
ETHICS STANDARD – COMMENTS ..................................................................................16
REPORTING STANDARD - RULES .....................................................................................26
REPORTING STANDARD – COMMENTS...........................................................................28
REAL PROPERTY APPRAISAL STANDARD RULES ..............................................................38
REAL PROPERTY APPRAISAL STANDARD – COMMENTS ..................................................40
REVIEW STANDARD - RULES ...........................................................................................46
REVIEW STANDARD – COMMENTS.................................................................................48
CONSULTING STANDARD - RULES...................................................................................51
CONSULTING STANDARD – COMMENTS ........................................................................52
RESERVE PLANNING STANDARD - RULES ........................................................................56
RESERVE PLANNING STANDARD – COMMENTS..............................................................57
MACHINERY AND EQUIPMENT APPRAISAL STANDARD - RULES ......................................58
MACHINERY AND EQUIPMENT APPRAISAL STANDARD – COMMENTS............................60
MASS APPRAISAL STANDARD - RULES ............................................................................61
MASS APPRAISAL STANDARD – COMMENTS ..................................................................62
APPENDIX A - INDEX.......................................................................................................66
APPENDIX B - CHANGES TO CUSPAP FROM 2020 EDITION .............................................70
 1. Introduction

INTRODUCTION
The Canadian Uniform Standards of Professional Appraisal Practice (“The Standards,” or
“CUSPAP”) were first introduced in January 2001.
Authority for interpretation and application of these Standards is found in the AIC
Consolidated Regulations and terms of reference of appropriate Committees and Sub-
Committees of the Institute. (“Committees”.)
The Standards contained in this edition are compliant with the International Valuation
Standards published by the International Valuation Standards Council.
A Member of the Appraisal Institute of Canada (the “Institute” or the “AIC”) must comply with
the requirements of CUSPAP when completing all types of Professional Services Assignments.
A Member of the Institute accepting Assignments under the International Financial Reporting
Standards must, along with compliance with the requirements of CUSPAP, obtain and be
familiar with the current edition of the International Valuation Standards.
Compliance with CUSPAP:
Compliance with the requirements of all components of CUSPAP is mandatory for all types
of
Professional Services Assignments.
Legislation and/or Regulations:
Members are required to comply with the applicable legislative and/or licensing requirements
for all types of Professional Services Assignments.
Legislation supersedes CUSPAP.
External Standards and/or Requirements:
Members who are qualified under more than one valuation organization and whose work is
required to comply with more than one standard of practice must ensure that adherence is to
the highest minimum standard.
Where two standards conflict, Members must comply with CUSPAP. It is a Member’s
responsibility to determine their obligations to comply with any other standard of
practice.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 2. Organization and Compliance

ORGANIZATION AND COMPLIANCE

Organization
The Standards are organized in three levels:
Definitions;
Standard Rules; and
Standard Comments.
Cross-references in the format of numbers in square brackets [#.#.#.i]
provide links to related Definitions; Rules; and Comments.
Compliance
Compliance with the Definitions is mandatory.
Compliance with the Standard Rules is mandatory.
The Standard Rules are based upon accepted principles regarding the minimum
mandatory content necessary to provide a credible result for all Professional
Services Assignments.
Compliance with the Standard Comments is mandatory.
The Standard Comments clarify, interpret, explain, and elaborate on the Rules.
A report must comply with the Reporting Standard [sections 6 and 7] and with the
Standard appropriate to the type of Professional Services Assignment being
undertaken.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

DEFINITIONS
AACI:
Accredited Appraiser Canadian Institute designation. [see 5.4.11]
ADMINISTRATIVE REVIEW:
A due diligence function generally completed for internal purposes by on-site or in-house staff
for the purpose of making a business decision within an organization. Generally undertaken
to ensure Reports comply with Client or Intended User requirements. The scope is typically
less than a Review and may entail requirements that are not standards-related, such as the
age of comparable properties, the length of time between the comparable sale date, and/or
the Effective Date. An administrative review might be simply of a clerical nature.
AIC:
Appraisal Institute of Canada.
APPRAISAL:
A formal opinion of value expressed either in written or oral form that is prepared as a
result of a retainer or an agreement and is intended to be relied upon by identified parties;
and for which the Member assumes responsibility. [see 6, 8, 16]
APPRAISAL PRACTICE:
A generic term to describe the work or professional services performed by a Member,
defined by the six activities regulated by these Standards: Real Property Appraisal, Review,
Consulting, Reserve Planning, Machinery and Equipment Appraisal, and Mass Appraisal.

Note 1: These six activities are intentionally generic, and not mutually exclusive. For
example: an estimate of Real Property value may be required as part of a Review, Consulting,
Reserve Fund Study and/or Machinery and Equipment Professional Service.

Note 2: The use of other terms (e.g. analysis, counselling, evaluation, study, submission,
valuation) does not exempt adherence to these Standards. To avoid confusion,
terminology included in CUSPAP should be used.

APPRAISER-ASSISTED AVM:
An automated valuation model (AVM) that requires appraiser judgment in developing and
setting parameters for comparable data search and final reconciliation processes. The output
of an AVM becomes a value when a Member applies judgment to the output. This may
involve accepting the AVM output as determined by the AVM, or forcing variables into or out
of the final model. A common use of Appraiser-Assisted AVMs is in Mass Appraisal
(assessment) valuations.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

ASSESSED VALUE:
A value set on real estate and personal property by a government as a basis for levying taxes.
Assessed value is a certified value identified on an assessment roll produced by an
Assessment Jurisdiction and is typically defined by statutes and regulations in each respective
Province.
ASSESSMENT JURISDICTION:
The prevailing jurisdiction granted authority under the highest level of legislation or
policy within a region. In some provinces, the Assessment Jurisdiction can be provincially
based whereas in other provinces the Assessment Jurisdiction is based on the local level
for each municipality.
ASSIGNMENT:
A Professional Service provided as a result of a retainer or an agreement between a
Member and a Client.
ASSUMPTION:
That which is assumed to be true. [see 3.25, 6.2.7, 7.8.1]
AUTOMATED VALUATION MODEL (AVM):
A computer program that analyzes data used in an automated process that may include
regression, adaptive estimation, neural network, expert reasoning, and/or artificial
intelligence programs.
AVM OUTPUT VALIDATION:
A Real Property Appraisal Assignment or Consulting Assignment where a Member provides
Professional Services in association with reviewing AVM data output.
BIAS:
A preference or inclination that is not reasonably supported and that prevents a Member
from impartially developing or communicating the results of an Assignment.
May also mean, favouring or promoting the cause or interest of the Member, or of one
party over another party in a transaction. [see 4.2.12, 5.11]
CLERICAL ASSISTANCE:
Clerical Assistance involves support to the Member in the preparation of a report that would
not be properly classified as Professional Assistance and does not include: inspection,
selection of market data, or assistance that leads to the analyses, opinions and conclusions in
the report. Examples of Clerical Assistance include: data collection; collating reports; preparing
appendices, maps and sketches; and spelling and grammar checking.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

CLIENT:
The individual or organization for whom the Member renders or agrees to render Professional
Services. [see 6.2.1, 7.2]
COMPETENCE:
Having sufficient knowledge, skill, and experience required to perform a specific Professional
Service Assignment. [see 4.2.7, 5.10]
CONSULTING:
Acting in an advisory capacity on diverse questions or problems involving Real Estate,
and/or Machinery and Equipment. The Scope of this type of Professional Service differs
from Real Property Appraisal or Review Assignments. [see 12, 13, 14, 15]
CRA:
Canadian Residential Appraiser designation. [see 3.19, 5.4]
DESIGNATED MEMBER:
A person enrolled on the register of the Institute as holding one of the following grades or
ranks, as conferred by the Board of Directors upon any person who has properly complied
with the requirements for their use:
 Accredited Appraiser Canadian Institute (AACI) [see 3.1]
 Canadian Residential Appraiser (CRA) [see 3.18]
 Professional Appraiser (P. App) [see 3.54]
 Professional Valuator (P. Val.)
DETRIMENTAL CONDITION:
An issue or condition that may cause a decrease in value including:
 General
 Transactional
 Distress and sociological
 Legal
 External
 Building and manufacturing
 Site and infrastructure
 Environmental and biomedical
 Conservation; and/or
 Natural and climate

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

DISCRIMINATION:
Discrimination is an action or a decision that results in the unfair or negative treatment of a
person or group. Reasons a person may experience discrimination include: race, national or
ethnic origin, colour, religion, age, sex, sexual orientation, marital status, family status,
disability, a conviction for which a pardon has been granted or a record suspension has
been ordered. 1
EFFECTIVE DATE:
The date at which the analyses, opinions, and conclusions in an Assignment apply. The
Effective Date may be different from the Inspection date and/or the Report date. [see 6.2.5,
7.7]
EXPOSURE TIME:
The estimated length of time the property interest being appraised would have been offered
on the market before the hypothetical consummation of a sale at the estimated value on
the Effective Date of the appraisal.
Exposure time is backward-looking.
EXTERNAL VALUER:
An Appraiser who is an agent acting on behalf of the Client and has no material link with the
Client or the subject of the Assignment.
Note: This is a term referred to in the International Valuation Standards (IVS) and used in
valuation for financial reporting. It is not related to AIC Fee Appraiser and Non-fee
Appraiser categories, or a reference to Appraisal for any purpose other than financial
reporting to indicate that the person writing the report is at arm’s length to the Client.
EXTRAORDINARY ASSUMPTION:
An assumption, directly related to a specific Assignment, which, if were not assumed to
be true, could materially alter the opinions or conclusions. [see 6.2.7, 7.9]
Extraordinary Assumptions presume uncertain information about or anticipated changes in:
the physical, legal or economic characteristics of the subject property; or about: conditions
external to the subject property such as market conditions or trends, or the integrity of
data used in an analysis to be fact.

1
Canadian Human Rights Commission. “Glossary.” Canadian Human Rights Commission, 27 May
2021, https://www.chrc-ccdp.gc.ca/en/resources/glossary

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

EXTRAORDINARY LIMITING CONDITION:

A necessary modification to, or exclusion of, a Standard Rule which may diminish the
reliability of the report. [see 6.2.7, 7.9]
FEASIBILITY ANALYSIS:
A study to assess whether a project will develop according to the expectations of the
Client and is economically feasible in accordance with the Client’s explicitly defined and
lawful financial objectives. [see 13.5]
FEE MEMBER APPRAISER:
A Member who renders Professional Services on a fee-for-service basis and/or where the
product of the service may be provided to any party external to the Member’s employer,
firm, partnership, or personal corporation. [see 3.59]
FIXTURE:
An improvement or Personal Property that is attached to the land or building in a permanent
manner, is essential to the property, and/or is an integral part of a structure.
FORCED SALE VALUE:
A Forced Sale Value occurs in a situation where:
 the seller is under compulsion to sell (and may be an unwilling seller);
 consummation of the sale is within a short period of time; and
 normal Marketing Time is not possible due to a brief Exposure Time.
A forced sale is a description of the situation under which a sale takes place, resulting in
a value that does not fully meet the definition of Market Value.
May also be referred to as: “liquidation value”, “distress sale” or “power of sale”.
HAZARDOUS SUBSTANCE:
Any material within, around, or near a property that has sufficient form or quantity and
exhibits any hazardous characteristics that could create a negative impact on value. Such
substances may include: solids, liquids, gaseous or thermal irritants, contaminants,
smoke, vapour, soot, fumes, acids, alkalis, chemicals, or waste materials.
HIGHEST AND BEST USE:
The reasonably probable use of Real Property, that is physically possible, legally permissible,
financially feasible, and maximally productive, and that results in the highest value. [see
8.2.6]
HYPOTHETICAL CONDITION:

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

Hypothetical Conditions are a specific type of an Extraordinary Assumption that presumes, as

fact, simulated but untrue information about physical, legal, or economic characteristics of
the
.
.
.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

subject property or external conditions, and are imposed for purposes of reasonable
analysis. [see 6.2.8, 7.10]
INSPECTION:
An observation, site visit, walk through, viewing, or non-invasive visual examination of
a property.
INTANGIBLE PROPERTY (INTANGIBLE ASSETS):
Non-physical assets, including: franchises, trademarks, patents, copyrights, goodwill,
equities, mineral rights, securities, and contracts, as distinguished from physical assets such
as facilities and equipment.
INTENDED USE:
The use of a Member’s Professional Services, as identified and authorized by the
Member based on communication between the Member and the Client. [see 6.2.2, 7.3]
INTENDED USER:
A party identified by name and authorized as a user of the Professional Services of the
Member, based on communication between the Member and the Client. [see 6.2.1, 7.2]
INTERNAL VALUER:
A Member who is employed by either an entity that owns the assets or the accounting firm
responsible for preparing the entity’s financial records and/or reports. A Member who is
an internal valuer may also be required to refer to the International Valuation Standards
(IVS).
Note: This is a term referred to in the IVS and used in valuation for financial reporting. It is
not related to AIC Fee Appraiser and Non-fee Appraiser categories, or a reference to Appraisal
for any purpose other than financial reporting.
INVESTMENT ANALYSIS:
A study that reflects the relationship between acquisition, price, and anticipated
future benefits of a Real Property investment. [see 13.4]
INVESTMENT ANALYSIS - RESERVE FUND STUDY:
For Reserve Fund Studies, an Investment Analysis consists of analyzing the rate of return
previously achieved by the Client with their Reserve Fund, along with estimating a rate of
return that might be achieved in the future in accordance with legislation (if applicable).
JURISDICTIONAL EXCEPTION:
An Assignment condition that permits the Member to disregard a part or parts of these
Standards that are determined to be contrary to law or public policy in a given jurisdiction;

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.
only that part or parts shall be disregarded and of no force or effect in that jurisdiction.
[see
5.3.9, 7.10.7, 19.4.1, 19.8]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

Jurisdiction relates to the legal authority to legislate, apply, or interpret law at either the
federal, provincial, or local levels of government. A Jurisdictional Exception must flow from
legislation (Acts, Bylaws, Procedures authorized and developed from Bylaws, or case law).
[see
19.8]
In a Report the Member must identify the part or parts of CUSPAP disregarded as well as
provide a reference to the law, regulation or legal authority that precludes compliance and
supports the Jurisdictional Exception. [see 19.8.3]
It is the responsibility of the Member, not the Client or other Intended User(s), to
determine whether the use of a Jurisdictional Exception is appropriate.
LEASE:
A legal agreement that grants right to use, occupy, or control all or part of a property for a
stated period of time based on the terms and covenants of the Lease including but not
limited to: the rental rate. [see 8.2.10]
LETTER OF RELIANCE (RELIANCE LETTER)
A Reliance Letter is used to authorize an additional or alternate Intended User to use and rely
on a report. A Reliance Letter details who may now rely on the report, for what Intended Use,
and upon what conditions. A Reliance Letter may only be issued with the prior Client’s written
authorization to release a copy of the report from the Client of the report, and the Member’s
agreement to permit an additional or alternate Intended User.
LETTER OF TRANSMITTAL
A cover letter that accompanies an assignment. A Letter of Transmittal typically accompanies
the delivery of a completed Report and typically uses past tense grammar (e.g., we have
appraised this property; this Report has been prepared). A Letter of Transmittal may also be
used to alert the Client to unusual or Extraordinary Assumptions or Conditions in the report,
or to further identify who may rely on the report.
LIMITING CONDITION:
A statement in an Assignment identifying conditions that impact the conclusion. [see 6.2.7,
7.9]
MACHINERY AND EQUIPMENT DEFINITIONS:
Machinery and Equipment: A term that describes the physical facilities available for
production, including: the installation and service facilities, together with all other equipment
designed or necessary for manufacturing purposes, regardless of the method of installation.
It also includes those items of furniture and fixtures necessary for the administration and
proper operation of the enterprise. [see 16]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

Equipment: includes all machinery and other apparatuses or implements used in an

operation or activity (all machinery is equipment, but all equipment is not necessarily
machinery). [see
16]
Equipment Classes: typical equipment classes include: production machinery; support
equipment; motor control centres and switchgear; power wiring; process piping; foundations
and structural supports; material handling and storage equipment; general plant equipment;
plant and motor vehicles; laboratory and test equipment; office furniture, fixtures, and
equipment; computer equipment; tools; special tooling; patterns and templates;
construction in progress; special classes; and inventory. [see 16]
Furniture: a particular type of equipment utilized in ancillary functions of an operation. It
is designed to provide a convenient and efficient work location for personnel or necessary
storage facilities. [see 16]
Machinery: the term encompassing man-made mechanical devices that are designed to create
a product or in some manner alter the state of a material or partial product. [see 16]
Trade Fixtures: Fixtures utilized for the purpose of carrying on a trade or business. In a
retail operation, they sometimes include specialized furniture or fixtures designed to
display products. [see 9.2.3.iv, 9.12.2]
MARKET ANALYSIS:
A study of Real Estate market conditions for a specific type of property. [see 13.3, 13.5.1]
MARKET VALUE:
The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in
other precisely revealed terms, for which the specified property rights should sell after
reasonable exposure in a competitive market under all conditions requisite to a fair sale,
with the buyer and the seller each acting prudently, knowledgeably, and for self-interest,
and assuming that neither is under undue duress 2.
MARKETING TIME:
Marketing Time is an opinion on the amount of time it might take to sell a property interest in
Real Estate at the concluded estimate of Market Value during the period immediately after
the Effective Date of an appraisal.
Marketing Time is forward-looking and predictive.

2
The Appraisal of Real Estate, Third Canadian Edition, ed. Dybvig, (University of British Columbia, Real Estate
Division, 2010), p. 2.8
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

MASS APPRAISAL:
The process of valuing a large group of properties as of a given date utilizing standard
methodology, employing common data, and allowing for statistical testing. [see 3.59, 3.62,
18,
19]
MASS APPRAISAL REPORT:
A Mass Appraisal Report may be in the form of:
 a Report with an opinion of value other than the Assessed Value;
 a Report in defence of an Assessed Value;
 sales ratios and other statistical studies used in the production of Assessed Values;
or
 market studies used in the production of the assessment value.
Notices of assessment are not considered Mass Appraisal Reports because they are produced
by an assessment jurisdiction, not an individual AIC Member; therefore, notices of
assessment are not bound by these Standards.
NON-FEE MEMBER APPRAISER:
A Member who renders Professional Services exclusively for the internal use of their
employer and whose Professional Services Reports are kept in-house and are not provided to
an outside party, even though a fee may be paid by an outside party to cover the cost of the
preparation of the Report.
Note 1: Notwithstanding the above, government and crown corporation employees may
register as Non-Fee Member Appraisers, (including those who are employed by one
government department but provide Professional Services to other governments,
government departments, or government-owned corporations), whether or not a fee is paid
for the services provided. [see 3.4, 3.17, 3.67, 18, 19]
NORMAL COURSE OF BUSINESS:
Common activities that are necessary and normal for completion of an Assignment. The basic
premise of “Normal Course of Business” aligns with concepts of member due diligence and
the “Reasonable Appraiser”, and as such is not measured by the actions of an individual
Member
in their practice, but by the actions of a Member’s peers, the expectations of Intended
Users, and the Scope of Work for the Assignment.
P. APP:
Professional Appraiser designation. [see 3.19]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

PERSONAL INFORMATION:
Information about an identifiable individual where there is a realistic possibility that the
individual could be identified through the use of that information, alone or in
combination with other information.
Personal information may be captured in: drawings, photographs, sound recordings
and/or video.
Personal Information can include: photographs of occupants and people, personal value
items, diplomas, cannabis plants, etc. Personal Information is most often found in: living
rooms, dining rooms, family rooms, bedrooms, and office spaces.
PERSONAL PROPERTY:
Identifiable portable, tangible or intangible objects considered or defined as being
"personal” and that are not classified as Real Property. Examples of classes of Personal
Property may include: furnishings, artwork, antiques, gems and jewelry, collectibles, and
Machinery and Equipment.
PROFESSIONAL ASSOCIATION/ORGANIZATION:
A Professional Association/Organization/Order that is generally accepted within Canada as
a reputable association and admits individuals on the basis of their academic qualifications,
experience and ethical fitness, and that requires compliance with a set of professional
standards for competence and ethics established or endorsed by the organization, and is
approved by the AIC.
PROFESSIONAL ASSISTANCE:
Support to the Member that has a direct and significant bearing on the outcome of an
Assignment including property Inspections, analysis of data, and development of opinions
and estimates. [see 3.71, 7.12]
PROFESSIONAL SERVICES:
Real Property Appraisal, Review, Consulting, Reserve Planning, Machinery and Equipment
Appraisal, and Mass Appraisal services which are rendered, or which should be rendered, by
a qualified, competent Member authorized under the Rules, By-laws, Regulations and
CUSPAP.
REAL ESTATE:
Land, buildings, and other affixed improvements, as a tangible entity.
REAL PROPERTY:
The interests, benefits, and rights inherent in the ownership of Real Estate. [see 9.2, 12.2.1]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

Note: In some jurisdictions, the terms “real estate” and “real property” have the same
legal meaning. The separate definitions recognize the traditional distinction between the
two concepts in appraisal theory.
REASONABLE APPRAISER:
A Member providing Professional Services within an acceptable standard of care and based
on rational assumptions. [see, 4.2.5, 7.1.2, 9.8]
Note: For the purposes of CUSPAP and the Professional Liability Insurance Program, the term
“appraiser”, when employed or referenced outside of the Real Property Appraisal Standard
and the Machinery and Equipment Appraisal Standard, is deemed to be generic and
synonymous to “AIC Member”, “the Member”, “the practitioner”, “the reviewer” (under the
Review Standard), “the consultant” (under the Consulting Standard), “the reserve fund
planner” (under the Reserve Planning Standard) and “the assessor” (under the Mass Appraisal
Standard).
RECERTIFICATION OF VALUE:
An inspection performed to confirm whether the Hypothetical Conditions applied in a
Report have occurred as assumed. [see 7.10.3]
REPORT:
Any communication, written or oral, of a Professional Service that is transmitted to a Client or
Intended User as a result of an Assignment. [see 7.1]
Note: Report types may include form reports, concise narrative reports, or
comprehensive reports in complete or draft form. A “letter of opinion” is not an
acceptable report type.
RESERVE FUND STUDY:
A budget planning tool that identifies the current status of a Reserve Fund and a Funding
Plan to offset the anticipated expenditures for the major repairs and replacement of
components, elements or assets, for which a corporation or association is responsible.
The Reserve Fund Study consists of two parts: the Physical Analysis and the Financial Analysis.
May also be referred to as “Depreciation Study”, “Depreciation Reports”, “Capital
Component
Report”, and “Contingency Reserves”. [see 14, 15]
RETAINER:
The engagement of a Member by a Client to provide Professional Services for an Intended Use.
REVIEW:
The act or process of developing and communicating an opinion about all or part of a
Report prepared by a Member or non-Member. [see 10, 11]
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 3.

SALES RATIO:
The ratio of the assessment value to the sale price of a property.
SCOPE OF PRACTICE:
The extent of work that a Member can complete based on their designation and qualifications
[see 5.4]; scope of practice is also limited by competence. [see 3.16]
SCOPE OF WORK:
The type and extent of an Inspection, research and analysis required, any limitations, or
other terms to fulfill the Intended Use of an Assignment. The Scope of Work for an
Assignment is determined by the Client’s lawful terms of reference, the Member’s
compliance to CUSPAP, and any applicable legislation. [see 6.2.4, 7.5, 7.6]
SIGNATURE OR CO-SIGNATURE:
The name of a Member or Members represented by a hand-written mark, a secured digitized
image, or other media indicating authentication of the work performed and accepting
responsibility for content, analyses, and the conclusions in the Report or Assignment. [see
6.2.9, 7.11, 7.12]
WORK-FILE:
Documentation necessary to support a Member’s analyses, opinions and conclusions.
Documentation may be in paper format, digital records, software programs, or a
combination of these formats. [see 4.2.9, 5.7]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 4. Ethics Standard -

ETHICS STANDARD - RULES

Requirements of Members
Members of the Institute pledge to conduct themselves in a manner that is not
detrimental to the public, the Institute, CUSPAP, or the appraisal profession. A
Member’s relationships with other Members, the Institute, and the public shall
portray courtesy, respect, and good faith. [see 4.2.2]
A Member is required to use due diligence and due care and must not render
Professional Services in a careless, biased, discriminatory, or negligent manner.
The fact that the carelessness, bias, discrimination, or negligence of a Member does
not result in an error that significantly affects a Report’s opinions or conclusions,
and thereby does not cause serious harm, does not excuse such carelessness, bias,
discrimination, or negligence.
Rules
It is unethical for a Member [see 5.1]:
to knowingly fail to comply with the Bylaws, Regulations, Standards, policies, and
Professional Liability Insurance Program of the Institute;
to knowingly engage in conduct that would prejudice their professional status,
the reputation of the Institute, CUSPAP, or any other Member; [see 5.1]
to knowingly act in a manner that is misleading; [see 5.2, 5.3]
to act in a manner that is fraudulent; [see 5.1.5, 5.1.6]
to knowingly complete an Assignment a reasonable Member could not support; [see
3.62]
to claim qualifications and Continuing Professional Development credits,
improperly; [see 5.6]
to undertake an Assignment lacking the necessary competence; [see 5.10]
to refuse to co-operate with the Institute; [see 5.5]
to fail to create a work-file for each Assignment; [see 3.72, 5.7]
to disclose results of an Assignment to anyone but the Client, except with the Client’s
permission; [see 5.8]
to fail to reveal any known conflict of interest; and [see 5.9]
to accept an Assignment that is contingent on the result or outcome. [see 5.11]

Canadian Uniform Standards of Professional Appraisal Practice

©Appraisal Institute of Canada, Ottawa, Ontario
Effective January 1, 2022
Page 15 of 74
 5. Ethics Standard -

ETHICS STANDARD – COMMENTS

Conduct [see 4.2.2]
A Member must perform Assignments ethically, objectively, competently, and
without bias or discrimination in a meaningful manner in accordance with these
Standards.
A Member must not engage in activities within a group or organization that these
Standards would prohibit them from doing as an individual.
A Member must not circumvent CUSPAP by doing indirectly what they cannot
do directly.
A Member acting as a Co-signer must provide the Member seeking designation
with adequate and reasonable supervision and advisory services.
Conduct by a Member that results in criminal charges may be subject to sanctions
in accordance with AIC Consolidated Regulations.
A Member must immediately inform the Institute upon any criminal convictions
or indictments.
Misleading Report [see 4.2.3, 4.2.4]
It is unethical for a Member to develop, use or permit others to use, for any
purpose, any Report which the Member knows, or ought to know, is defective,
erroneous, and/or misleading.
A misleading Report can be caused by omission or commission and may result from
a single large error or a series of small errors that, when taken in aggregate, lead to a
Report that is deemed to be misleading.
Misleading Advertising [see 4.2.3]
A Member must maintain the highest standards of objectivity and impartiality when
advertising their Professional Services, or referring to the Institute for promotional
or solicitation purposes and using advertising media including: print advertisements,
leaflets, pamphlets, brochures; electronic media, and corporate, business, personal
web sites, and/or social media. (e.g., LinkedIn, Facebook, Twitter, Instagram)
A Member may advertise:
to solicit Clients and business in a manner that does not offend the interests of
the public and the Profession;
to inform prospective Clients and the public of the availability of their
Professional Services;
to advise as to the range, nature and cost of their Professional Services;
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

their competence to perform, either directly or indirectly, in any Report

or advertising media; and
jointly with another Member.
When advertising a Member may:

include a University degree or other professional designations; and

include their AIC designation and refer to their affiliation with the Institute.
A Member must not [see 4.2.3, 4.2.4]:
advertise in a false, misleading, or exaggerated manner;
use laudatory statements or superlatives to describe their services;
advertise in a manner that is contrary to the public interest or the Institute;
refer to or make use of the name of the Institute or its
professional designations and trademarks in a:
 misleading or deceptive manner; or
 manner that suggests that a business organization is a Member of the
Institute and/or holds any professional designation.
use the Institute logos, trademarks, or identity in contravention of the AIC Logo
and Usage Guidelines.
A Member must identify their designation (AACI or CRA) or Membership status
(AIC Candidate Member) in any advertising for Professional Services.
A business entity that is wholly or partially owned or controlled by a Member must
not solicit Professional Services in a manner that is misleading or otherwise contrary
to the public interest, the Institute, the profession, or the Standards.
Candidate Members must not [see 4.2.3, 4.2.4, 4.2.6]:
identify themselves with any term/title that might be misinterpreted as an AIC
designation, (e.g. “accredited appraiser” or a “Designated appraiser”);
use initials or abbreviations that might be misinterpreted as an AIC designation;
or
promote the Candidate Membership in such a way that it might be perceived
as a valuation designation (e.g., “CRA [or AACI] Candidate” or “Candidate CRA
[or AACI]” or any combination or variation thereof).
AIC Candidates Members must identify themselves as:
“Candidate Member of the Appraisal Institute of Canada”; or
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

“Candidate Member of the AIC”; or

“AIC Candidate Member”. [see 4.2.6]
A Jurisdictional Exception may require AIC Candidate Members to identify
themselves in an alternative manner.
In any Report or advertising media an AIC Candidate Member must identify:
that they are working under the supervision of a Designated Member of the
AIC; and
the name of the supervisor and their designation. [see 3.19]
Qualifications [see 4.2.6, 7.11]
A Member must identify their designation (CRA or AACI) or Membership status (AIC
Candidate Member) wherever their name appears in any CUSPAP Professional Service
and related correspondence including Letters of Transmittal, Reliance Letters, Progress
Reports, and/or email correspondence. [see 3.19]
Only a Member holding the AACI designation is entitled to use of the term
“accredited appraiser.”
Only a Member holding the AACI or CRA designations is entitled to use the term
“Designated Member” and the P. App designation.
An Associate, Retired, Honorary AACI, or Student Member shall not:
hold themselves out in any way as a practicing Member of the Institute; or
undertake to perform any type of Report associated with the Professional
Services defined in CUSPAP.
A resigned, suspended, or expelled Member:
shall not hold themselves out in any way as a practicing Member of the Institute;
and
is not authorized to affix the designation or Member status they held prior to
their change in Member status to their name in any type of document.
A CRA Member must use that designation in connection with the Real Property
Appraisal, Review, Consulting, or Mass Appraisal of:
an individual, undeveloped site for not more than four (4) self-contained family
housing units, or
a dwelling or property containing not more than four (4) self-contained family
housing units.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

An exception is made for:

Reserve Planning Assignments whereby a competent CRA Member can use the
CRA designation to undertake Reserve Planning Assignments on any building size
or type. Additional limitations may be imposed by Provincial Legislation;
Machinery and Equipment Appraisal Assignments whereby a competent CRA
Member can use the CRA designation to undertake standalone Machinery and
Equipment Appraisal Assignments on any property only if the Real Property is
not being appraised; and
Where an appropriate provincial license allows, a competent CRA Member
can undertake Mass Appraisal Assignments. Where licensing exists in a
particular jurisdiction, refer to the specific provincial Act and associated
Regulations for details concerning the scope of practice of this licensing for
that jurisdiction.
Where a CRA Member signs a Report beyond the Scope of Practice set out in 5.4.6
and which does not fall within the exceptions outlined in 5.4.7, the Report must be
co- signed by an AACI Member.
Holding a designation from another valuation organization does not allow a CRA
Member to complete an assignment that is beyond the Scope of Practice as set
out in 5.4.6 and which does not fall within the exceptions outlined in 5.4.7.
The Highest and Best Use of the property that is the subject of the Assignment will
determine whether an Assignment falls within the Scope of Practice for a CRA
Member. [see 8.2.6, 9.5]
An AACI or CRA Member cannot co-sign a Report with a(n):
Student Member;
Associate Member;
Retired Member; (retired status)
Honorary AACI;

Candidate Member unless properly registered in the Candidate Registry; or

non-member unless properly registered in AIC’s Quebec Registry or Non-
Member Registry.
An AACI or CRA Member registered in the Non-Fee category shall not co-sign for any
Professional Services completed by a Fee Member.
An AACI or CRA Member registered in the Fee category may co-sign a Professional
Services Report completed by a Non-Fee Member only if the Report is an internal or in-
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

house Report, and is not provided to any outside party.

Co-operate [see 4.2.8, 5.7]
A Member must not fail or refuse to provide, and must not unreasonably delay the
submission of: a written Report, Work-file or other material that is or should be in
their possession or control if requested by the Institute.
A Member having custody of a Work-file, must allow authorized committees of the
Institute with obligations related to the Assignment, appropriate access and
retrieval. [see 5.8.2.iii]
A Member must not submit false or misleading information to the Institute.
Continuing Professional Development
A Member must comply with the Continuing Professional Development (CPD)
Policy and must not claim CPD credit improperly.
Records [see 4.2.9, 5.5]
A Work-file must be in existence prior to and contemporaneous with the issuance of
a written or oral Report.
A written summary of an oral Report must be added to the Work-file within a
reasonable time.
A Member must prepare a Work-file in hard copy or electronic format, for each
Assignment. The Work-file must include:
the name of the Client and Intended Users;
true copies of any written Reports including drafts in any format;
summaries of any oral Reports (or court transcripts) sufficient to meet the
requirements of the Reporting Standard, the assignment-specific Standard and
the “Reasonable Appraiser” test;
a signed and dated certification; and
all other data, information and documentation necessary to support the
Member’s opinions, analysis, and conclusions and to show compliance with
this rule and all other applicable Standards, or references to the location(s) of
such other documentation.
A photocopy or an electronic copy of the entire written Professional Services sent
or delivered to a Client satisfies the requirement of a true copy. The industry
standard medium for electronic storage is a PDF or equivalent and not by office or
on-line appraisal software.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -
Care should be exercised in the selection of the form, style, and type of medium for

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

written records, which may be handwritten and informal, to ensure they are
retrievable by the Member throughout the prescribed record retention
period.
A Work-file must be retained for a period of at least:
seven (7) years after preparation or
two (2) years after final disposition of any judicial proceeding in which
testimony was given or any professional liability insurance proceeding has taken
place.
Whichever period expires last.
A Member must (subject to 5.7.8):
retain the Work-file and have custody of the Work-file; or
make appropriate arrangements for Work-file retention, access, and retrieval
with the party having custody of the Work-file.
If a Member is unable to retain a copy of the Work-file, whether by reason of an
employer’s internal rules or by change of employer, all reasonable steps must be
taken by the Member to ensure the availability of such Reports and Work-files when
requested.
A Member should obtain written commitment from employers that Reports and
Work- files will be made available when required.
Disclosure [see 4.2.10]
A Member pledges to uphold the confidential nature of the
Member/Client relationship.
A Member must not disclose the analyses, opinions or conclusions in an Assignment
to anyone other than:
the Client and those parties specifically authorized by the Member and Client to
receive such information;
third parties, when the Member is legally required to do so by due process of law
(i.e. the Courts or Legislation); or
an authorized Committee or Committee member of the
Institute.
A Member must not disclose information provided by a Client on a confidential basis
to anyone other than:

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -
those parties specifically authorized by the Client to receive such information;
third parties, when the Member is required to do so by due process of law; or
an authorized Committee or Committee member of the Institute.
If the conditions of an Assignment require that the performance of that Assignment is

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

to be kept confidential, a Member must decline a new Assignment on the same

property, with a condition requiring disclosure of any prior Assignment.
The Office of the Privacy Commissioner has determined that taking photographs of
an individual’s dwelling unit is a collection of personal information and is a violation
of statute without the occupant's consent.
A Member is strongly cautioned on the use of confidential and/or personal
information and must obtain meaningful consent from an occupant (e.g., tenant,
property owner if occupant, occupant of office space, etc.) before taking photographs
of a property.
Meaningful consent must state its purposes in such a manner that the occupant
can reasonably understand how the information will be used or disclosed.
The Member must obtain an occupant’s consent to photograph their personal area of
occupancy and notify them that photographs may be included in the Report. The
Member should include Limiting Conditions to the effect that they are not
responsible for the misuse of the photographs by third parties.
A copy of any written consent to take and use photographs must be kept in the
work- file. A sample Consent Form is found here
https://www.aicanada.ca/members- home/professional-practice-resources/forms-
templates/ .
If written consent cannot be obtained, verbal consent may be relied upon however,
a detailed written record of when and how the verbal consent was obtained and
from whom, must be kept in the work-file.
If no form of consent can be obtained, a Member should record that efforts were made
to obtain consent but no form of consent could be obtained and provide an
explanation in the report, i.e.:
an occupant, or one of multiple occupants refused to consent;
the occupant was not present at time of inspection or could not be reached
(e.g., out of town, out of the country);
a language barrier existed where the occupant did not understand a language
well enough to provide meaningful consent; or
the occupant at the time of the inspection was not of legal age to provide
meaningful consent.
If no form of consent can be obtained, photos with personal information cannot
be taken.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -
Notwithstanding consent, a Member must take reasonable steps to ensure that images
of personal information, occupants, and any other person are not captured in
photographs.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

If a property is vacant and has no identifiable personal information, consent is not

required.
Conflict [see 4.2.11]
A Member pledges to develop, support and communicate each analysis, opinion
and conclusion without regard to:
any personal interest in the subject matter;
any party related to the Assignment; or
the outcome of the Assignment.
It is unethical for a Member to accept an Assignment if the Member has any
direct, indirect, current, or potential personal interest in the subject or outcome of
the Assignment, unless:
the personal interest is revealed to the Client in writing:
 prior to acceptance of the Assignment, or
 as soon as the conflict is revealed or perceived.
the Client acknowledges and accepts the conflict in writing; and
the personal interest is fully and accurately revealed in the
Report.
The payment and/or receipt of a concealed fee, a commission, or a thing of value or
of non-value in connection with the procurement of any Assignment is unethical.
Disclosure of fees, commissions, or things of value connected to the procurement of
an Assignment must appear in the certification of the written Report and in any Letter
of Transmittal in which conclusions are stated.
The Client must be made aware of, and consent to, any fees, commissions or things
of value, including referral fees, connected to the procurement or referral of an
Assignment prior to accepting the Assignment.
Referral fees do not have to be disclosed in the Report if:
the referral is because of the competency and ability of a Member to undertake
the Assignment;
the referral fee does not increase the total fee charged to the Client;
the Client is informed in writing of the referral and referral fee arrangements;
and
the Client consents.
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -
Members must take all steps necessary to ensure that they are not in conflict
when they have previously completed an appraisal on a property and are
requested to

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

reappraise the property. (i.e. “successive representation”)

Competence [see 4.2.7]
Prior to accepting an Assignment or entering into an agreement to perform any
Assignment, the Member must properly identify the problem to be addressed and have
the knowledge and/or experience to complete the Assignment competently or
alternatively:
disclose the lack of knowledge and/or experience to the Client in writing
before accepting the Assignment; and
take all steps necessary or appropriate to complete the Assignment
competently; and
if the Member lacks experience and/or knowledge to undertake an
Assignment, the Member must describe in the Report, the steps taken to
complete the Assignment competently.
The steps necessary and appropriate to complete an Assignment competently include:
personal study of relevant educational offerings from accredited educational sources,
association with another Member or professional with the necessary knowledge or
experience, or retention of others who possess the required knowledge and
experience.
When a Member lacks the required knowledge of and experience in a market area,
they must acquire an understanding of local market conditions beyond hard data such
as: demographics, costs, sales, and rentals. A Member must spend the necessary
amount of time in a market area to gain geographic competency or affiliate with a local
qualified Member or third-party professional.
Competency, including geographical competency, is a requirement for co-signing. [see
3.16, 3.71]
Contingent [see 4.2.12]
It is unethical for a Member to accept a Professional Service Assignment, excluding a
Consulting Assignment, if compensation for the Assignment is contingent upon:
reporting a predetermined value;
a direction in value that favours the Client as a result of bias;
the amount of the value opinion (i.e. ad valorem);
the attainment of a stipulated result; or

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -
the occurrence of a subsequent event directly related to the value opinion.
When a Member is asked to undertake an Assignment to perform both a Real
Property

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 5. Ethics Standard -

Appraisal Assignment and a Consulting Assignment, compensation for the Real

Property Appraisal Assignment cannot be on a contingent fee basis but
compensation for the Consulting Assignment may be on a contingent fee basis.
In these circumstances, the Member must:
make arrangements with the Client such that compensation for providing the
Real Property Appraisal is not on a contingent fee basis; and
include a disclosure of the separate compensation arrangements for the Real
Property Appraisal portion and the Consulting portion of the Assignment in the
certification; or
retain (or suggest that the Client retain) another Member to perform the Real
Property Appraisal under compensation that is not on a contingent basis.
A Member must follow legislation in their jurisdiction governing advocacy and
Professional Services completed on a contingency basis.
Where a Member also works as a real estate professional or a real estate broker;
appropriate disclosures must be made so that a Client understands when the Member
is acting in their capacity of a real estate professional or real estate broker and when
the Member is acting as an appraiser, consultant or reserve fund planner.
An agency relationship implies that the individual will maximize the position
of their Client. Professional Services are provided on an objective, unbiased
and impartial basis, when the Member is acting as an appraiser, consultant or
reserve fund planner.
Care must be taken to ensure the Client understands this difference, in order
to properly understand the opinion or advice offered.
Disclosures must be in writing, and a Member will disclose that insurance
coverage under the AIC program is not applicable to their activities as a real
estate professional or a broker with a statement similar to: “This opinion
should not be considered a formal appraisal of market value and is not covered
under the Professional Liability Insurance Program of the Appraisal Institute of
Canada.”
A Member may recommend a sale/listing price for a Client when acting as a real estate
professional or a real estate broker provided no Report [see 3.64] is prepared and the
Member clearly informs the Client that the recommendation for sale/listing is not a
formal Appraisal Report. [see 5.11.7]
A Member acting as a broker or sales/listing agent is not covered by the Professional
Liability Insurance Program of the Institute for claims arising from a
recommendation of a sale/listing price.
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
Effective January 1,
 6. Reporting Standard -

REPORTING STANDARD - RULES

Preamble
This Standard provides the reporting rules common to all Reports.
Members cannot complete Reports in compliance with only the Reporting Standard.
Members must complete Reports in compliance with the Reporting Standard and with
the Standard appropriate to the type of Assignment being undertaken:
a Real Property Appraisal Assignment must be prepared in compliance with the
Reporting Standard and the Real Property Appraisal Standard. [see 8]
a Review Assignment must be prepared in compliance with the Reporting
Standard and the Review Standard. [see 10]
a Consulting Assignment must be prepared in compliance with the Reporting
Standard and the Consulting Standard. [see 12]
a Reserve Planning Assignment must be prepared in compliance with the
Reporting Standard and the Reserve Planning Standard. [see 14]
a Machinery and Equipment Assignment must be prepared in compliance with
the Reporting Standard and the Machinery and Equipment Standard. [see 16]
a Mass Appraisal Assignment must be prepared in compliance with the
Reporting Standard and the Mass Appraisal Standard. [see 18]
Rules
In a Report [see 7.1] the Member must:
identify the Client by name and Intended User by name; [see 7.2]
identify the Intended Use of the Member’s opinions and conclusions; [see 7.3]
identify the purpose of the Assignment, including a relevant definition of value
if applicable; [see 7.4]
define the Scope of Work necessary to complete the Assignment; [see 7.5, 7.6, 7.9.4,
9.16]
identify the Effective Date of the Member’s analyses, opinions and conclusions, and
identify whether the opinion is current, retrospective, prospective, or an update;
[see
7.7]
identify the Date of the Report; [see 7.8]
identify all Assumptions and Limiting Conditions (including Extraordinary
Assumptions and Extraordinary Limiting Conditions); [see 7.9]
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
Effective January 1,
 6. Reporting Standard -

identify any Hypothetical Conditions; [see 7.10]

and include a signed Certification. [see 3.71, 7.11]
Note: A Member who signs a Certification accepts responsibility for the Report and
the contents of the Report. [see 7.1, 7.12]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

REPORTING STANDARD – COMMENTS

Report [see 3.64, 6.2]
A Report transmitted through any medium must comply with this Standard and the
Standard appropriate to the type of Assignment being undertaken.
A Member must take steps to meet the “Reasonable Appraiser” test in order to
protect and secure the integrity of transmitted Reports, including Reports transmitted
electronically.
Members must have sole control of affixing their analog and digital signatures or
where affixing of an electronic signature has been delegated, written confirmation of
the delegation must be kept in the work-file. Delegation must be on an Assignment
basis only and not a blanket delegation.
A Drive-by or Desktop Report is only permitted for Real Property Assignments and
must comply with the Reporting Standard and the Real Property Appraisal Standard.
A Drive-by or Desktop Report may not be performed for a Reserve Fund Study or
a Machinery and Equipment Assignment.
A Drive-by or Desktop Assignment being prepared for mortgage financing must
meet the following criteria:
the authorized Intended Use is first mortgage financing;
reliable data is available on the subject property through either public and
private sources that are less than three (3) years old; and
the Report includes appropriate Assumptions and Limiting Conditions; [see
7.9]
A Drive-by or Desktop mortgage financing Assignment may only be prepared under
the assumptions that:
the lender has determined that the borrower has the capacity and willingness to
repay; and
the loan-to-value ratio is in accordance with lending institution policies and
federal lending regulations.
Desktop or Drive-by assignments shall be prepared only on existing properties
where construction is believed to be one hundred percent complete.
Desktop or Drive-by assignments shall not be performed on new construction
or partially constructed improvements.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

When using a residential form report, a member must use the most recent form
approved by the Institute. (https://www.aicanada.ca/members-home/professional-
practice-resources/forms-templates/ )
Client and Intended User [see 3.15, 3.37, 6.2.1]
The Client is the individual or organization for whom the Member renders or agrees
to render Professional Services.
Except as indicated in 7.2.3.ii, The Client and/or Intended User must be identified
by name in the Report.
Terms including: “To be determined”, “To be confirmed”, “John Doe and his
lenders”, “Lender ABC and its subsidiaries”, “Jane Smith and her assignees” are
not acceptable.
The use of vague or undefined Client or Intended User names and Client or
Intended User types is not permitted.
The Client/Member relationship lasts at least until the completion of the Intended
Use of the original Report, or until release from the Client is granted.
A party receiving a copy of a Report does not become an Intended User or Client
unless authorized and identified by name and in writing, by the Member and
the Client.
Where a Report is prepared by the Member for consideration by a tribunal or
court, an Intended User, including a judge, mediator, arbitrator, or other trier
of fact, does not need to be identified by name.
Intended Use [see 3.36, 6.2.2]
Before accepting an Assignment, a Member must communicate with the Client
to identify and consider the Client's Intended Use in order to:
properly define the problem under study; and
understand their development and reporting responsibilities for the Assignment.
The Intended Use of the opinions and conclusions, as established with the Client, must
be stated in a Report.
The use of vague or undefined Intended Use types is not permitted.
Purpose [see 6.2.3]
The purpose of a Report states the mandate resulting from the Client's Intended Use
or objective.
The purpose of a Report must be clearly stated.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

Value definition(s), if applicable, must be included in a Report together with the

source of the definition.
Scope of Work [see 3.70, 6.2.4]
Scope of Work in a Report describes the amount and type of information
researched and the analysis applied to complete an Assignment and includes:
Inspection (Inspection of the subject property is mandatory, subject to any
Extraordinary Limiting Condition);
research into physical, legal, social, political, economic and/or other factors
that could affect the property;
data research and verification, and Inspection of comparable data;
documents relied upon and their availability for review by the Client or an
Intended User;
analysis applied; and
any limitations to the Assignment.
The Scope of Work must be sufficient to result in analyses, opinions, and
conclusions that are credible in the context of the Intended Use of the Report.
The Member has the burden of proof to support the Scope of Work decision and
the level of information included in a Report.
Scope of Work – Appraisal Review [see 10, 11]
A Member must define the Scope of Work and indicate the extent of the
Review process.
Scope of Work refers to the amount and type of information reviewed and
researched, and the analysis applied.
The Scope of Work applied must be sufficient to result in opinions and/or
conclusions that are credible in the context of the Intended Use of the Review.
Scope of Work in a Review Report may include one or more of the following:
Inspection - in a Review Assignment, an Inspection of the property subject to the
Report under review is not mandatory; it is subject to the terms and Intended
Use of the Assignment as well as reliance on third party information, and any
Hypothetical Conditions, Extraordinary Assumptions and/or Extraordinary
Limiting Condition; [see 3.9, 3.25, 3.26, 3.32]
the research into physical, legal, social, political, economic, or other factors
that could affect the property;

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

data research and verification, and Inspection of comparable

data; analysis applied (e.g. application of the valuation
methodologies); validation of the arithmetic;

any limitations to the Assignment arising from the terms of the

Assignment, per the Client’s instructions or other; and
completing a Review without an opinion of value; or
completing a Review with an opinion of value.
The Member has the burden of proof to support the Scope of Work decision and
the level of information included in a Review Report.
Effective Date [see 3.22, 6.2.5]
Establishes the context for the value opinion; the date of the value.
Current Value Opinion refers to an Effective Date contemporaneous with the date of
the Report, at the time of Inspection or, at some other date within a reasonably short
period of time from the date of Inspection when market conditions have not, or are
not expected to have, changed.
Retrospective Value Opinion refers to an Effective Date prior to the date of the Report.
The use of clear language and consistent terminology in a retrospective report (i.e.
past tense throughout) is necessary to avoid producing a misleading Report.
Extraordinary Assumptions and/or Extraordinary Limiting Conditions must be
clearly stated in the Report and cite the conditions under which the
retrospective value opinion was developed.
Prospective Value Opinion is a forecasted value opinion and refers to an Effective Date
after the date of the Report. The use of clear language and consistent terminology in
a prospective report (i.e. future tense throughout) is necessary to avoid producing a
misleading Report.
A prospective value opinion is intended to provide an opinion of value occurring
on a future date, based upon current market forecasts of future market
conditions. This opinion should be based on the market data for the forecasts
when made, not whether in hindsight they, in fact, occurred.
An Extraordinary Assumption must be clearly stated in the Report citing the
market conditions from which the prospective value opinion was developed,
and limiting the Member’s responsibility for unforeseeable events that may alter
market conditions prior to the Effective Date.
An Update Report refers to an extension of an original Report, changing the Effective

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

Date. In the update Report, any changes in the status of the subject, in market
conditions, or in any aspect affecting the analysis, opinions and conclusion since
the original Report, or any subsequent Report, must be identified, with analyses of
the effect these changes had in developing the update opinion.
Two conditions must be met before an update Assignment is accepted:
 the original Member, or firm, and Client are involved; and
 the time between the effective date of the original Report and the update
Report is not unreasonably long for the type of Real Estate involved.
The update Report must reference the Effective Date, the date of the Report,
and the estimated value in the original Report.
The original Report must be updated with new data if new data is
available. An update that is not a self-contained Report must make clear
that it:
 is an update of the specified original Report;
 details changes to the property and analyses since the original Report; and
 must be read in conjunction with the original Report, a copy of which is
either attached to the update Report or available to the Client on request.
Re-inspection is mandatory only if it is identified as part of the Scope of Work
for the update Report.
An update is not a Recertification of Value.
Date of Report [see 6.2.6]
The date of the Report refers to the date of completion of the Report. If a Report is
retrospective or prospective, the date of the Report and the Effective Date of the
Report must be included in tandem throughout the Report, to clarify any distinction
between conditions on the date of the Report and conditions on the Effective Date.
Assumptions and Limiting Conditions (including Extraordinary Assumptions and
Extraordinary Limiting Conditions) [see 6.2.7]
If an Extraordinary Assumption is invoked, wherever an opinion or conclusion is
stated within a Report, the Extraordinary Assumption must be stated in its entirety or
a reference to its exact location in the Report must be provided.
When referencing the subject matter of an Extraordinary Assumption in a Report,
it must be clearly indicated that the opinions or conclusions are based on the
Extraordinary Assumption.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -
Wherever an Extraordinary Assumption is referenced in a Report, it must be
clearly identified as an Extraordinary Assumption.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

Before invoking an Extraordinary Limiting Condition, the Member must determine

that the Scope of Work applied will result in analyses, opinions and conclusions that
are credible and will not be misleading.
The Member must include an explanation and justification of Extraordinary Limiting
Conditions in the Report.
Extraordinary Assumptions and Extraordinary Limiting Conditions do not require a
Hypothetical Condition.
A Member must include in every Report as a minimum all of the Assumptions and
Limiting Conditions found here https://www.aicanada.ca/forms-templates/
unless clearly not appropriate and clearly not relevant to the Assignment.
A Member working outside of Canada must:
prior to accepting the Assignment, clearly inform the Client in writing that the
Assignment is not covered by the AIC Professional Liability Insurance Program;
and
include an Extraordinary Limiting Condition to this effect in the Certification and
Letter of Transmittal.
Hypothetical Conditions [see 3.33, 6.2.8]
Hypothetical Conditions may be used when they are required for legal purposes, for
purposes of reasonable analysis, or for purposes of comparison.
With respect to proposed improvements or modifications, the Member shall examine
and have available for future examination:
plans, specifications, and/or other documents sufficient to identify the scope
and character;
evidence indicating the probable time of completion; and
reasonably clear and appropriate evidence supporting development costs,
anticipated earnings, occupancy projections, and the anticipated competition
at the time of completion.
A Recertification of Value does not change the Effective Date of the Report.
[see 3.63]
A Hypothetical Condition requires an Extraordinary Assumption.
Hypothetical Conditions can apply whether the Assignment is for the purpose of
developing a retrospective, current, prospective, or update value opinion. The
Member must avoid making unsupported Assumptions.
The Report must be clear that:

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

the condition does not in fact exist as at the Effective Date;

the analysis performed to develop the opinion of value is based on a
hypothesis, specifically that the condition is assumed to exist when, in fact,
it does not;
certain events need to occur, as disclosed in the Report, before the condition
will in fact exist;
the Report does not consider unforeseeable events that could alter the value
conclusion; and
the absence of the hypothesis would likely result in a different value
conclusion.
Reports for expropriation can require Hypothetical Conditions and may require the
Member to invoke a Jurisdictional Exception. [see 3.41]
The Hypothetical Condition must be clearly disclosed in the Report, with a
description of the hypothesis, the rationale for its use, and its effect on the result of
the Assignment.
An analysis based on a Hypothetical Condition must result in a credible analysis
and must not result in a Report that is misleading.
Certification [see 6.2.9]
Each written Report must contain a signed Certification that is substantially similar to
that found at https://www.aicanada.ca/forms-templates/ .
Responsibility [see 6.2.9]
By signing a Report, a Member assumes responsibility for the Report, including any
Professional Assistance, unless limitations to responsibility have been outlined in
the Certification.
A Designated Member may rely on any manner of Professional Assistance provided by
a Member who is:
a Member in good standing with the AIC; and
competent to perform the Professional Assistance according to the definition
of the Reasonable Appraiser [see 3.62]; and
not a Student, Associate, Honorary, or Retired Member; and
if a Candidate Member, properly registered with the Member in
the
Candidate Co-signing Registry.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -
A Designated Member may rely on Professional Assistance provided by a non-member
in two instances:

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

Inspections which the Member would be qualified and competent to

perform themselves; and
services (e.g. Land Planning, Engineering, Surveying, Accounting) not included
in Definition 3.59.
The Professional Assistance of Inspection may be received only from a non-member
who is:
An individual employed to perform property inspections by a Corporation that
is properly registered with the AIC as a provider of inspection services and
whose requirements for employees performing property inspections include:
 membership in good standing in a Professional Association approved by the
AIC or employment by an Organization approved by the AIC; and
 if required by provincial and/or national legislation/regulation, a license
or certification and approval to perform inspections; and
 a reputation as a credible professional/tradesperson who is competent
to perform property inspections; and
 a minimum of ten years of experience relevant to inspection; or the
educational equivalent to, or greater than: UBC BUSI 400 Residential
Property Analysis, Laval GUI-2103: Real estate and sustainable development,
or Seneca RPA 306: Construction and Cost Techniques; and
 liability insurance for errors and omissions that is appropriate and adequate
for property inspection.
An individual who:
 is a member in good standing of a Professional
Association/Organization approved by the AIC; and
 if required by provincial and/or national legislation/regulation
is licensed/certified to perform inspections; and
 is a reputable and credible professional/tradesperson and competent to
perform the Inspection; and
 has a minimum of ten years of experience relevant to inspection; or has
education equivalent to or greater than UBC BUSI 400 Residential Property
Analysis, Laval GUI-2103: Real estate and sustainable development, or
Seneca RPA 306: Construction and Cost Techniques, and
 carries liability insurance for errors and omissions that is appropriate
and adequate for Inspection; and

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

 is properly registered with the Member in the AIC’s Non-Member Registry.

Professional Assistance for services (e.g. Land Planning, Engineering, Surveying,
Accounting) not included in Definition 3.59 may only be received from a non-
member who is a member in good standing of a Professional
Association/Organization; and
if required by provincial and/or national legislation/regulation is
licensed/certified to perform the Professional Assistance being provided;
and
is a reputable and credible professional/tradesperson and competent to
perform the Professional Assistance being provided; and
carries liability insurance for errors and omissions that is appropriate and
adequate for the scope and type of the Professional Assistance being provided.
A Designated Member is responsible for ensuring that any individual providing
Professional Assistance, including Inspections, in the preparation of a Report meets
the requirements outlined in sections 7.12.2 and 7.12.3.
A Designated Member must disclose in the Certification of the Report:
all individuals who provided Professional Assistance; and
the extent of the Professional Assistance.
An Extraordinary Assumption and/or a Limiting Condition regarding the Designated
Member’s reliance upon Professional Assistance provided by a non-member must
be included in the Certification of a Report.
A Member may rely on Clerical Assistance from Members and/or non-members and is
not required to disclose Clerical Assistance in the Certification of a Report.
If the Certification bears the signature of one or more Members as joint authors,
then all signatories assume responsibility for the entire contents of the Report unless
limitations have been outlined in the Certification. A Member may only co-sign a
Report with an AIC Member who is in good standing and properly insured under the
Professional Liability Insurance Program.
Candidate Members must be properly registered in the Candidate Registry by a
Designated Member prior to co-signing Reports or providing Professional Assistance.
A CRA-designated Member working toward the achievement of the AACI
designation is not required to be registered in AIC’s Candidate Co-signing Registry.
Co-signing Members must include both signatures for Reports, progress
inspection Reports, Reliance Letters or any related Assignment Report that would
require a co- signature.
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -
If one signature is not included, there must be prior written authorization

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 7. Reporting Standard -

from a co-signer on a per Assignment basis only and not a blanket delegation.
Another person with authorization may sign the certifying Member's name,
unless contrary to the law of the relevant jurisdiction.
Delegation must be provided in writing on a per Assignment basis only
and not a blanket delegation.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 8. Real Property Appraisal Standard -

REAL PROPERTY APPRAISAL STANDARD RULES

Preamble
This Standard outlines the procedures for the development and communication of a
formal opinion of value for Real Property [see 8.2] and in conjunction with the
Reporting Standard [see 6, 7], incorporates the minimum content necessary to
produce a credible Report that is not misleading.
A stand-alone Market Rent Report on an identifiable property must be prepared
in accordance with the Real Property Appraisal Standard and in conjunction with
the Reporting Standard.
Rules
When completing a Real Property Appraisal Report, a Member must comply with the
Reporting Standard [see sections 6, 7], and must:
provide an analysis of reasonable exposure time linked to a market value opinion; [see
3.23, 9.1]
identify the interest appraised;
identify the property and describe its location and characteristics; [see 9.2]
identify and analyze land use controls; [see 9.3]
state the existing use and the use reflected in the Report; [see 9.4]
define, analyze and resolve the Highest and Best Use as of the Effective Date of the
Report; [see 3.32, 9.5]
describe and analyze all data relevant to the Assignment; [see 9.6]
describe and apply the appraisal procedures relevant to the Assignment and
provide reasoning for the exclusion of any of the relevant valuation procedures;
[see 9.7]
detail the reasoning supporting the analyses, opinions and conclusions of
each valuation approach; [see 9.8]
analyze the effect on value, if any, of the terms and conditions of the lease(s) when
developing an opinion of the value of a leased fee, leasehold interest; [see 9.9]
analyze the effect on value of an assemblage; [see 9.10]
analyze the effect on value of anticipated public or private improvements; [see 9.11]
analyze the effect on value of any personal property; [see 3.56, 9.12]
analyze and comment on:
all Agreements for Sale, Options, or Listings of the property, subject to 9.13,
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 8. Real Property Appraisal Standard -

and
all prior sales of the property, subject to 9.13;
review and reconcile the data, analyses and conclusions of each valuation approach
into a final value estimate; [see 9.14] and
report the final value estimate. [see 9.15]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -

REAL PROPERTY APPRAISAL STANDARD – COMMENTS

Exposure Time [see 3.23, 8.2.1]
Exposure Time is a retrospective estimate of a length of time based upon an analysis
of past events assuming a competitive and open market within which, a property
would have sold.
Exposure Time is always presumed to have preceded the Effective Date of the
Report. Exposure Time is different for various types of Real Estate and under various
market
conditions. Rather than appearing as an isolated estimate of time, it must refer to the
property appraised, at the value estimated.
The overall concept of reasonable Exposure Time encompasses not only adequate,
sufficient and reasonable time, but also adequate, sufficient and reasonable marketing
effort.
The distinction between Exposure Time and Marketing Time must be made clear if
both are referred to in the Report.
Characteristics of the Property [see 3.46, 8.2.2, 8.2.3, 16.2.2]
A Member’s inspection should, at the minimum, be thorough enough to:
adequately describe the property in the Report;
develop an opinion of highest and best use, when such an opinion is necessary
and appropriate; and,
make meaningful comparisons in the valuation of the property.
A Member must personally inspect the subject property or identify an Extraordinary
Limiting Condition if they did not.
The characteristics of the property must be adequately described and analyzed. The
Report must include:
the property identification by civic address and/or legal description or other such
specific reference to describe the location of the property and the property type
with certainty;
the interest to be valued;
physical, legal, and economic attributes;
any personal property, chattel, trade fixtures, and/or intangible items
if included in the value estimate;

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -
any known or apparent restrictions, easements, encumbrances, leases,
reservations, covenants, contracts, declarations judgments, special
assessments,

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -

ordinances, liens, and/or other item of a similar nature if relevant to the

Assignment;
consideration of known detrimental conditions; [see 3.20, 3.30]
whether the subject property is a fractional interest or a partial holding; and
the extent of Inspection of the subject property.
Land Use Controls [see 8.2.4]
Land Use Controls, including zoning, must be identified and their effect on use and
value analyzed, together with any reasonably probable modifications of the Land
Use Controls in light of economic demand, the physical adaptability of the property,
and market area trends.
A Member must reasonably support the probability and imminence of a change in
Land Use Controls where the Highest and Best Use indicates a change in Land Use
Controls (e.g., rezoning or redevelopment).
Use [see 8.2.5, 16.2.3]
The existing use of the property as of the Effective Date of the Report must be
included in the Report.
If the existing use is a non-conforming use, the Member must discuss and analyze
the implications of this use.
Highest and Best Use [see 3.32, 8.2.6]
The Report must contain an opinion as to the Highest and Best Use of the
property, unless an opinion as to Highest and Best Use is not relevant.
If the Purpose of the Assignment is to provide a Market Value, support and
rationale for the opinion of Highest and Best Use is required in the Report.
The analysis of the Highest and Best Use (as if vacant and as improved) and
reasoning in support of the opinion and conclusion must be:
provided with the depth and level of detail required in relation to its significance
to the Report; and
based on the relevant legal, physical and economic factors. [see 9.5.4]
Opinions on the Highest and Best Use of a property are required on both:
the land, as if vacant; and
the property, as improved.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -

Describe and Analyze All Data Relevant to the Assignment [see 8.2.7, 16.2.5]
The information and analyses provided in a Report must be sufficient to explain
and support the rationale for the opinion and conclusions.
The processes of collecting and verifying relevant information must be performed in
a manner consistent with the “Reasonable Appraiser” test.
All three approaches to value require the collection of comparable data. The
decision to inspect the comparable data and the extent of verification of data will be
determined by the Scope of the Assignment and must conform to the “Reasonable
Appraiser” test. [see 3.62]
Appraisal Procedures [see 8.2.8, 16.2.6]
Excluding an approach to value that is relevant under the “Reasonable Appraiser”
test requires:
an Extraordinary Limiting Condition, and
supporting reasons.
Excluding an approach to value that is not relevant under the “Reasonable Appraiser”
test requires:
supporting reasons only.
When a Direct Comparison Approach is applicable, the Member must:
analyze such comparable data as are available to indicate a reasonable value
conclusion.
When a Cost Approach is applicable, a Member must:
develop an opinion of site value by an appropriate appraisal method;
analyze such comparable cost data as are available to estimate the cost new of
the improvements (if any); and
analyze such comparable data as are available to estimate the
difference between cost new and the present worth of the improvements
(accrued depreciation) if applicable.
When an Income Approach is applicable, a Member must:
analyze clear and relevant market evidence to estimate the income realized by
the property;
analyze such comparable operating expense data as are available to estimate the
operating expenses of the property;
analyze such comparable data as are available to estimate rates of
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -

capitalization and/or rates of discount; and

base projections of future income and expenses on reasonably clear
and relevant market evidence.
When a Discounted Cash Flow Analysis is applicable, in addition to the requirements in
9.7.5, the Member must:
analyze such data as are available from the Real Estate and capital markets and
surveys of investor opinions;
ensure that input data is specific to the type of property being appraised and the
market conditions prevailing and forecasted as of the Effective Date of value;
clearly display all relevant data, cash flow projections, and assumptions
on which the analyses are based; and
identify and describe any computer software used in the analyses.
A Report that includes the results of a Discounted Cash Flow analysis must clearly
state the assumptions on which the analysis is based and must set forth the relevant
data used in the analysis.
Market Value Discounted Cash Flow analyses must be supported by market-
derived data and any assumptions should be both market and property specific.
When an Automated Valuation Model (AVM) [see 3.11] is applicable, a Member must:
determine if use of the AVM is appropriate for the Assignment;
ensure that the AVM does not exclude relevant data necessary for a credible
result;
disclose or invoke relevant Assumptions and Limiting Conditions;
and identify and describe the AVM or AVM output used in the
analyses.
The output of an AVM is not a “value”.
Reasoning [see 3.62, 8.2.9, 12.2.4, 16.2.7]
Reasoning requires the logical review, analysis, and interpretation of data in a
manner that will support the value conclusion, not be misleading, and conform with
the “Reasonable Appraiser” test.
Leased Fee/Leasehold Interest [see 8.2.10, 16.2.8]
Legal aspects such as the effect of existing leases can directly impact property
value and need to be considered.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -
If a lease is to be disregarded and the Assignment is of the fee simple interest
and not the leased fee, an Extraordinary Assumption (Hypothetical Condition)
is

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -

required.
A Leased Fee/Leasehold Interest may be less than, equal to, or greater than the
value of all interests in the property.
A Leased Fee/Leasehold Interest may be omitted when not relevant to the Assignment.
Assemblage [see 8.2.11, 16.2.10]
The value of the whole property may be less than, equal to, or more than the sum of
the components of the various estates or parcels.
Assemblage establishes the effect, if any, on value of the “larger parcel”.
When relevant to the Assignment, the effect on value of an assemblage must be
considered and analyzed in the Report.
Anticipated Improvements [see 8.2.12, 16.2.11]
When relevant to the Assignment, the effect on value of anticipated public or private
improvements must be considered and analyzed in the Report.
Personal Property [see 3.46, 3.56, 8.2.13, 16, 17]
When relevant to the Assignment, the effect on value of personal property must be
referenced, considered, and analyzed in the Report.
A Member must have the competence to ascertain whether a fixture is an
improvement, personal property, or a trade fixture.
Agreement for Sale/Option/Listing [see 8.2.14, 16.2.12]
Any agreement for sale, option, or listing of the property that occurred within one
year prior to the Effective Date of the Report, including any pending/current Contract
of Purchase and Sale or lease, must be analyzed and reported if such information is
available to the Member in the Normal Course of Business.
Any sale of the subject property that occurred within three years prior to the Effective
Date of the Report must be analyzed and reported if such information is available to
the Member as at the date of valuation and in the Normal Course of Business.
Any impact on the price paid for the subject property or any effect on value under
known undue stimulus must be reported.
Review and Reconcile [see 8.2.15, 16.2.13]
The Member must review, discuss, and reconcile in the Report the quality and quantity
of data available and analyzed within the approaches used, and the applicability and
reliability of those approaches in the context of the scope of the Assignment.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 9. Real Property Appraisal Standard -

Final Value [see 8.2.16, 16.2.14]

May be a single point value, a range of values, or an indication of value (e.g. “not less
than” or “not greater than” a specified amount).
Scope of Work for Valuation for Financial Reporting [see 7.5, 9.7]
A Member must understand the applicable standard and ensure their work is in
compliance.
In order not to mislead an Intended User of an external appraisal for financial
reporting, all four items listed below must be conducted independently by an
External Valuer. If all four items are not carried out, the resultant opinions cannot be
regarded as an external appraisal:
An Inspection of the subject property sufficient enough to estimate its Highest
and Best Use, adequately describe the Real Estate, and make meaningful
comparisons.
A test of a reasonable sample of major tenant lease documents to ensure
rental terms match the landlord’s rent roll and to check for renewal
options, termination options, etc.
The utilization of independent market-based assumptions in the development
of cash flow, not simply acceptance of the management cash flow and the
implicit Assumptions therein. [see 9.7.6]
The reliance on market data/yields that have been independently developed
in a manner that is consistent with the development of the subject property
cash flow. Meaningful comparisons are critical for consistency, accuracy and
transparency. [see 9.7.5]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 10. Review Standard -

REVIEW STANDARD - RULES

Preamble
This Standard outlines the procedures for the development and communication of a
formal Review opinion of a Report [see 10.2] and in conjunction with the Reporting
Standard, incorporates the minimum content necessary to produce a credible
Review Report that is not misleading.
In performing a Review [see 3.67] Assignment, a Member must develop and report a
credible opinion as to the quality of the work of another Member and must clearly
disclose the Scope of Work performed in the Review Assignment.
The Review must be done to determine compliance with the CUSPAP Standard to
which the Member of the reviewed Report was required to comply.
The Review may also be done to determine compliance with another recognized
Standard (USPAP, Red Book, EVS/Blue Book, les Normes, IVS, etc.).
A Member can complete a review of a report prepared by a non-Member
whose work is required to comply with standards of practice other than
CUSPAP.
An AIC Member must be competent in the standard(s) of practice to which
the report under review is subject.
This Standard is applicable to reviews also known as “technical reviews” and
“compliance reviews”.
This Standard is not applicable to:
AIC Peer Review;

Supervisory co-signing; and

Administrative Review.
 An external reviewer may be engaged by individuals or organizations to
conduct an Administrative Review. When an external reviewer conducts
such Administrative Review Assignments, the Review conducted must follow
this Standard.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 10. Review Standard -

Rules
When completing a Review Report, a Member must comply with the Reporting Standard [see
6, 7], and must:
identify the Report under Review, the author(s) of the Report under Review, the
Machinery and Equipment and/or real estate and real property interest involved,
and the Effective Date of the opinion in the Report under Review; [see 3.22, 7.7]
provide an opinion as to whether the Scope of Work employed in the Report under
Review is appropriate and reasonable for its intended use and whether the Scope
of Work employed has been met; [see 7.6, 11.1.2, 11.1.4, 11.5]
provide an opinion as to the adequacy and relevance of the data and the propriety of
any adjustments to the data; [see 10.2.2, 11.6]
provide an opinion as to the appropriateness and proper application of the
methodologies (valuation or other) and techniques used; [see 11.1.1]
provide an opinion as to whether the analyses, opinions and conclusions in the Report
under Review are appropriate and reasonable; [see 11.1.2] and
provide reasons for any disagreement or agreement with the Report being reviewed.
[see 11.3]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 11. Review Standard -

REVIEW STANDARD – COMMENTS

Review [see 10.2]
A Review Report is a critique intended for use in conjunction with the Report under
Review. The reviewer must develop a Review using a professional tone and
professional language.
A Review of a Report is performed by an independent and competent Member for the
purpose of forming an opinion as to whether the analysis, opinions, and conclusions
in the Report under Review are appropriate and reasonable.
The reviewer does not sign/co-sign the Report that is under Review.
The reviewer goes beyond checking for a level of completeness and consistency in
the Report under Review by providing comment on the content and conclusions of
the Report.
Purpose of Review [see 7.4]
A reviewer must ascertain whether the purpose of the Review Assignment includes:
a Review without an opinion of value of the subject property of the Report
under Review; or
a Review with an opinion of value of the subject property of the Report under
Review. [see 11.2.2]
If the purpose of the Assignment includes the development of an opinion of value, that
opinion is an Appraisal Assignment that must comply with the Real Property Appraisal
Standard. The reviewer is required to:
complete the Review in accordance with this Review Standard, and
develop their opinion of value in accordance with the Real Property Appraisal
Standard.
If including an opinion of value, the reviewer must identify and state:
any new information relied upon,
the reasoning and basis for the opinion of value, and
all Assumptions and Limiting Conditions (if different from or in addition
to those in the Report under Review).
If including an opinion of value, those items in the Report under Review that the
reviewer concludes are in compliance with CUSPAP can be used in the reviewer’s
development process.
If including an opinion of value, those items in the Report under Review that the

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 11. Review Standard -

reviewer concludes are not in compliance with CUSPAP must be replaced with
information or analysis developed in accordance with the Real Property
Appraisal Standard in order to produce a credible value opinion.
If the Review is to determine compliance with the version of CUSPAP in effect as of the
date of the Report under Review, the reviewer may be required to reference two
different versions of the Standards, those being:
the version applicable as at the date of the Report under Review; and
the version to be complied with, by the reviewer, for the writing of
the
Review, that being the version of the day.
Review with an Opinion of Value [see 6, 7, 8, 9]
When the purpose of a Review includes the development of an opinion of value, the
Member may use additional information that was not available in the development of
the value opinion in the Report under Review.
The Member may conclude that their opinion:
concurs with the opinion of value in the Report under Review;
differs from the opinion of value in the Report under Review; or
does not need to be set forth in a separate Report; however, that it must be
prepared and reported in accordance with CUSPAP.
External/Internal Review [see 3.24, 9.16.2, 10.1.6.iii]
For the purposes of financial reporting, an “internal” Report may be supported by an
“external review” under the Review Standard.
The function of an “external review” is not to appraise the subject property but to
examine the contents of the management (internal) valuation and form opinions as to
its adequacy and appropriateness, its suitability, and its Intended Use and User.
An “external review” judges the reasoning and logic of the original Report but the
reviewer does not substitute their own judgment.
An “external review” does not lead to an alternate value conclusion.
Given the function of an “external review”, an “internal” valuation supported by an
“external review” must still be considered an internal Report.
Completeness of the Report under Review [see 6.2.3, 6.2.4, 7.4, 7.5, 10.2.2]
The reviewer must form an opinion as to the completeness of the Report under
Review. This requires the reviewer to determine whether or not the Report under

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 11. Review Standard -
Review met the requirements set by its stated Purpose and Scope of Work (e.g.: the
“Reasonable Appraiser” test, the relevant Standard, Rules and Comments).

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 11. Review Standard -

Adequacy and Relevancy of the Data [see 8.2.1, 8.2.7, 9.1, 9.6, 10.2.3]
The Review must be conducted in the context of market conditions as of the Effective
Date of the opinion in the Report being reviewed.
Data that could not have been available for the Report under Review on the date of
that Report:
must not be used by a reviewer in the development of a Review; but
may be used when the purpose of the Review includes the requirement
to
develop an opinion of value. [see 11.3]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 12. Consulting Standard - Rules

CONSULTING STANDARD - RULES

Preamble
This Standard outlines the procedures for the development and communication of a
formal Consulting Report [see 12.2] and in conjunction with the Reporting Standard
[see 6, 7], incorporates the minimum content necessary to produce a credible
Consulting Report that is not misleading.
Rules
When completing a Consulting Report, a Member must comply with the Reporting Standard
[see sections 6, 7], and must:
identify the Real Estate/property under consideration, if any; [see 13.2]
collect, verify, reconcile, and report all pertinent data as may be required to complete
the Consulting service;
describe and apply the Consulting procedures relevant to the Assignment; [see 13.2,
13.3, 13.4, 13.5, 13.6, 13.7, 13.8]
detail the reasoning that supports the analyses, opinions, and conclusions; [see 9.8]
and
report the Member’s final conclusions/recommendations, if any.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 13 Consulting Standard -

CONSULTING STANDARD – COMMENTS

Consulting
Consulting is a broad term that is applied to Assignments other than estimating value.
Market Rent Reports on a general type of property are considered Consulting
Assignments.
If a formal opinion of value or rent on a specific, identifiable property is required
within the Consulting Assignment, that portion of the Consulting Report must be
developed in compliance with the Real Property Appraisal Standard. [see 6, 7, 8, 9]
The Report must disclose that this component is completed within the Real
Property Appraisal Standard. [see 12.2.2]
Real Property Consulting [see 3.61]
In performing a Consulting Assignment involving Real Estate or Real Property services, a
Member must:
identify and analyze alternative courses of action to achieve the Client’s lawful
objective, and analyze their implications;
identify both known and anticipated constraints to each alternative and
consider their probable impact;
identify the resources actually, or expected to be, available to each alternative
and consider their probable impact; and
reconcile the data and identify the optimum course of action to achieve the
Client’s lawful objective.
Market Analysis
In performing a market analysis, a Member must:
define and delineate the market area;
identify and analyze the current supply and demand conditions that make up
the specific Real Estate market;
identify, measure, and forecast the effect of anticipated development, or
other changes, and future supply;
identify, measure, and forecast the effect of anticipated economic, or other,
changes and future demand; and
reconcile the data into a final recommendation, opinion and/or conclusion.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 13 Consulting Standard -

Cash Flow/Investment Analysis

In developing a cash flow and/or investment analysis, a Member must:
analyze the quantity and quality of the income stream;
analyze the history of expenses and reserves;

analyze financing availability and terms;

select and support the appropriate method of processing the income stream;
and
analyze the cash flow return(s) and reversion(s) to the specified investment
position over a projected time period(s).
Feasibility Analysis [see 13.3]
In developing a feasibility analysis, a Member must:
prepare a complete market analysis; [see 13.3]
apply the results of the market analysis to alternative courses of action to
achieve the Client’s lawful objective;
consider and analyze the probable costs of each alternative;
consider and analyze the probability of altering any constraints to each
alternative;
consider and analyse the probable outcome of each alternative; and
reconcile the data into a final recommendation, opinion and/or
conclusion.

Property Condition Assessment

In performing a property condition assessment Assignment of Real Estate and/or Real
Property improvements within a Real Estate parcel, a Member must:
review documentation and interview those who are knowledgeable with the
operation and physical condition of the subject property;
complete an inspection of the subject property;
observe and report on the physical condition of the subject property;
and prepare an estimated opinion of costs to remedy observed and
apparent
physical deficiencies if required within the Assignment scope.
Progress Report

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 13 Consulting Standard -
A progress Report prepared to estimate percentage complete without reference to
value, as part of an original Report, is an extension of the original Report. [see 6, 7, 8,
9]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 13 Consulting Standard -

A stand-alone progress Report, prepared to estimate percentage complete without

reference to value, without an original appraisal Report, is considered to be a
Consulting Assignment and must be prepared in compliance with the Consulting
Standard.
In performing a stand-alone progress Report, prepared to estimate percentage
complete without reference to value and without an original appraisal Report,
a Member must:
complete a walk-through survey of the subject property; and
observe and report on the physical condition of the subject property.
AVM Output Validation
An AVM Output Validation is undertaken to determine if an Intended User’s particular
course of action is or is not supported by market evidence.
This section [13.8] does not apply to assessment or other Mass Appraisal uses
that are considered Appraiser-Assisted, where a Member reviews the AVM
output and arrives at a value opinion by applying judgment and experience. [see
8, 9]
A Member undertaking an AVM Output Validation will not:
perform any research;
provide a value or an opinion of value;
prepare a Report; or
sign a certificate of
value.
A Member undertaking an AVM Output Validation may:
comment on criteria used to reach the AVM value; and
comment on the AVM generated value.

A Member undertaking an AVM Output Validation may be exempt from the following
Reporting Standard Rules:
 6.2.3 In a Report a Member must identify the purpose of the Assignment,
including a relevant definition of value;
 6.2.5 In a Report a Member must identify the Effective Date of the Member’s
analyses, opinions and conclusions, and identify whether the opinion is
current, retrospective, prospective, or an update;
 6.2.6 In a Report a Member must identify the date of the Report;
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 13 Consulting Standard -
 6.2.9 In a Report a Member must include a signed certification;

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 13 Consulting Standard -

A Member is required to maintain a Work-file for AVM Output Validation Assignments.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 14. Reserve Planning Standard- Rules

RESERVE PLANNING STANDARD - RULES

Preamble
This Standard outlines the procedures for the development and communication of a
formal Reserve Fund Study [see 14.2] and in conjunction with the Reporting Standard
[see 6, 7], incorporates the minimum content necessary to produce a credible Report
that is not misleading.
The purpose of a Reserve Fund Study [see 3.65] is to provide cost estimates for the
required period of various reserve components for which major repairs and/or
replacement are required over the lifetime of the subject of the Reserve Fund
Study, and to estimate funding required for such major repairs and replacement.
The higher standard of practice shall apply, whether it be the applicable legislated
requirements governing the preparation of Reserve Fund Studies/Depreciation
Reports or CUSPAP.
Rules
When completing a Reserve Planning Report, a Member must comply with the Reporting
Standard [see sections 6, 7], and must:
identify the characteristics of the property; [see 9.2]
identify the legislation that applies to the Assignment; [see 15.1.1]
describe and analyze all relevant data to complete the Reserve Fund Study; [see 9.6]
define and delineate the pertinent components the Reserve Fund Study is to cover;
[see 15.2]
provide a benchmark analysis; [see 15.2.1.i]
provide at least one cash flow projection; [see 15.2.1.ii]
provide an opinion on the adequacy of reserve fund contributions; [see 15.2.1.iii]
provide at least one reserve fund funding model; [see 15.2.1.iv]
detail the reasoning that supports the analyses, opinions, and conclusions; [see 9.8]
report the final conclusions/recommendations; [see 15.3] and
identify whether the Report is an update (if applicable). [see
7.7.5]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 15. Reserve Planning Standard -

RESERVE PLANNING STANDARD – COMMENTS

Preamble
Legislation that applies to Reserve Fund Studies exists in a number of provinces. The
Member is required to be familiar with and comply with the requirements of applicable
legislation for such studies, including the qualification criteria set out in such
legislation.
The higher standard of practice shall apply, whether it be the legislated requirements
governing the preparation of Reserve Fund Studies/Depreciation Reports or CUSPAP.
The output of a Reserve Fund Study is not a “value”; it is primarily a cash flow forecast
and budget planning tool.
The investment analysis of a Reserve Fund Study must be conveyed in such a manner
so as not to be construed as the Member providing “investment advice”.
Components of the Reserve Fund Study [see 14.2.4]
Benchmark analysis, cash flow projections, an analysis of the adequacy of the reserve
fund contributions, and preparing a reserve fund funding model are compulsory
components of a reserve fund planning Assignment.
A benchmark analysis usually contains summary information about the age
and expected life of a component and an estimate of the amount that should be
set aside in order to accumulate the appropriate amount at the time that major
repair or replacement of the component will be required.
Cash flow projections must cover a minimum 25 years, unless legislated
otherwise,
The contingency reserve and the recommended annual contributions are
inter-related and must be discussed in terms of their adequacy, as well as the
recommended actions required to achieve the recommended level of funding.
In preparing a reserve fund funding model, the Report must clearly state the
objectives under which it is prepared. Options include: fully funded models,
special levies, financing, legislated requirements, or other options to make up
shortfalls between the existing fund balance and what is considered to be
prudent and/or legislated.
Review, Reconciliation and Final Conclusions/Recommendations [see 14.2.9, 14.2.10]
The Report must discuss the quality and quantity of data available and analyzed, along
with the applicability and reliability of the data in context of the scope of the
Assignment.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 16. Machinery & Equipment Appraisal Standard –

MACHINERY AND EQUIPMENT APPRAISAL STANDARD - RULES

Preamble
This Standard outlines the procedures for the development and communication of a
formal opinion of value for Machinery and Equipment [see 3.46] (a category of
personal property) [see 16.2] and in conjunction with the Reporting Standard[see 6,
7], incorporates the minimum content necessary to produce a credible Report that is
not misleading.
Rules
When completing a Machinery and Equipment Report, a Member must comply with the
Reporting Standard [see sections 6, 7], and must:
provide an analysis of reasonable Exposure Time linked to a market value opinion; [see
9.1]
identify the property type and classification, inspect the property, and describe the
characteristics of the property including applicable component parts, that are
relevant to the type of Machinery and Equipment (personal property) and the
ownership interest to be valued; [see 9.2]
define and analyze the property’s current use and alternative uses, as relevant to the
type and definition of value; [see 9.4]
define and analyze the appropriate market consistent with the type and definition of
value;
describe and analyze all data relevant to the Assignment, including the relevant
economic conditions that exist on the Effective Date of the valuation, including
market acceptability of the property and supply, demand, scarcity or rarity; [see 9.6]
describe and apply the appraisal procedures relevant to the Assignment and provide
reasoning for the exclusion of any of the relevant valuation procedures; [see 9.7]
detail the reasoning supporting the analyses, opinions and conclusions of
each valuation approach; [see 9.8]
analyze the effect on value, if any, of the terms and conditions of the lease(s) or
encumbrances; [see 9.8]
Legal aspects such as the effect of existing leases can directly impact property
value and need to be considered.
If a lease is to be disregarded and the assignment is of the fee simple interest
and not the leased fee, an Extraordinary Assumption (Hypothetical Condition) is
required.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 16. Machinery & Equipment Appraisal Standard –

analyze the significance of the value of individual assets to the Assignment results
when appraising multiple objects. Those objects which are more significant to the
Assignment results should be the focus of the analysis and analyzed in
appropriate detail; [see 9.12]
analyze the effect on value, if any, of an assemblage of various component parts of
a property. The Member must refrain from valuing the whole solely by adding
together the individual values of the various component parts; [see 9.10, 17.2]
analyze the effect on value, if any, of any anticipated modifications of the property,
to the extent they are reflected in market actions; [see 9.11]
analyze all agreements for sale, validated offers or third-party offers to sell, options,
and listings, as well as all prior sales of the property within a reasonable and
applicable time period given the Intended Use of the appraisal and property type;
review and reconcile the data, analyses and conclusions of each valuation
approach into a final value estimate; [see 9.14] and
report the final value estimate. [see 9.15]

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 17. Machinery & Equipment Appraisal Standard –

MACHINERY AND EQUIPMENT APPRAISAL STANDARD – COMMENTS

Characteristics of Property [see 16.2.2]
Relevant to the Purpose and Intended Use of the Report, these characteristics along
with those listed in 9.2 must be described, analyzed and included in the Report:
the property identification by serial number or other specific identifying
features; and
physical, legal and economic attributes including condition, style, size, quality,
manufacture, author, materials, origin, age, providence, alterations,
restorations, and obsolescence.
Information used to identify the Personal Property characteristics must be from
sources the Member reasonably believes to be reliable. The Member is permitted to
use a combination of a property inspection and documents or other resources to
identify the relevant characteristics of the subject property.
Assemblage [see 16.2.10]
When appraising multiple objects, those objects that are more significant to the
Assignment results should be subject to an appropriately greater depth of analysis.
Where applicable, the value of the whole of an assembled facility must be tested by
reference to appropriate data and supported by an appropriate analysis of such data.
A similar procedure must be followed when the value of the whole has been
established and the Member seeks to value a part. The value of any such part must
be tested by reference to appropriate data and supported by an appropriate analysis
of such data.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 18. Mass Appraisal Standard -

MASS APPRAISAL STANDARD - RULES

Preamble
This Standard outlines the procedures for the development and communication of
a formal Mass Appraisal Report [see 18.2] and in conjunction with the Reporting
Standard [see 6, 7], incorporates the minimum content necessary to produce a credible
Report that is not misleading.
Rules
When completing a Mass Appraisal Report, a Member must comply with the Reporting
Standard [see sections 6, 7], and must:
identify the prevailing Act or Regulation granting authority for the assessment and
standards thereof; and
adhere to the relevant provincial or jurisdictional Mass Appraisal standards and
procedures as determined through provincial statutes and municipal bylaws.
[see
19.4.1].

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 19. Mass Appraisal Standard -

MASS APPRAISAL STANDARD – COMMENTS

Mass Appraisal Principles
Mass Appraisal is a broad term that is applied to the production of property values for
a group of properties on a ‘mass’ level by using standard methods, common data, and
allowing for statistical testing.
Values produced on a mass level differ from those produced under the other Standards
in CUSPAP in that they are not completed on an individual property basis but rather as
a group based on the individual characteristics of a property in comparison to a
group of properties.
This process is often referred to as assessment modelling.
Mass Appraisal is usually completed by a number of individuals, many of whom may
not be Members of the Institute. The role of the Member is therefore only to deal
with a specific issue or aspect of the Mass Appraisal exercise they produced or
contributed to.
This Standard does not apply to AVM Output Validation [see 13.8] where a Member
does not:
perform research;
provide a value opinion;
prepare a report; or
sign a certificate of value.

Documentation for the development of a Mass Appraisal may be in the form of:
property records;
sales ratios and other statistical studies;
appraisal manuals and documentation;
market studies;
model building documentation;
regulations;
statutes; and
other acceptable forms.
All of these elements together may make up a Mass Appraisal.
Mass Appraisal

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 19. Mass Appraisal Standard -
In addition, stand-alone (individual) Mass Appraisal Reports covered under this

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 19. Mass Appraisal Standard -

standard include only:

Mass Appraisal Reports with a formal opinion of value;
Mass Appraisal Reports in defence of an assessed
value;
sales ratios and other statistical studies used in the production of assessed
values; and
market studies used in the production of the assessed values.
In developing a Mass Appraisal Report, a Member must be aware of, understand, and
correctly apply those recognized methods and techniques to produce and
communicate credible results.
If the Member is responsible for only a component of the Mass Appraisal
Report, their responsibility is limited to those components that they completed.
Mass Appraisal Report with a Formal Opinion of Value
If a formal opinion of value other than the assessed value for an identifiable property
is required for the purpose of adjudicating/hearing an assessment appeal, a Member
must:
develop the Mass Appraisal Report in compliance with the Real Property
Appraisal Standard. [See 6, 7, 8, 9]
Mass Appraisal Report in Defence of an Assessed Value
If a Mass Appraisal Report is developed for the purpose of adjudicating/hearing an
assessment appeal and the assessed value is being argued, a Member must:
identify the assessed value of the property, where relevant;
identify the property and describe its location, use, and other characteristics;
state any information relied upon in the production of the assessed value;
state the reasoning and basis for the assessed value; and

state any assumptions, limiting conditions and/or if any Jurisdictional

Exceptions have been made in the assessment process.
If a Mass Appraisal report is developed for the purpose of adjudicating/hearing an
assessment appeal and a revised assessed value resulting from a correction to
property characteristic(s) is being argued, in addition to the above, a Member must
also:
state the correction to the property characteristic(s) on the assessment
record, including the reason and support for the correction; and
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 19. Mass Appraisal Standard -
provide the corrected assessed value.
In assessment jurisdictions where the assessed value is not appealed but the

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 19. Mass Appraisal Standard -

characteristics of the property and the elements of the assessment model are
appealed, the Member does not need to identify the assessed value in the appeal
Report.
Negotiations or Mediation
With or without prejudice discussions, negotiations, or mediations for the purpose of
resolving a disputed assessment or conclusion of an assessment inquiry, whether part
of an appeal process or outside an appeal process, are not bound by this Standard.
No Report is required. These resolutions do not constitute a Mass Appraisal Report
covered under this Standard.
Sales Ratios and other Statistical Studies used in the Production of Assessed Values
In producing sales ratios or other statistical studies as part of the assessment value
production, a Member must:
identify the Real Estate/property under consideration, if any;
collect, verify, and report all pertinent data;
define and delineate the market area and data set;
identify the supply and demand conditions that make up the specific data set;
detail the reasoning that supports the analyses, opinions, and conclusions;
and
reconcile the data into a final recommendation, opinion, and/or conclusion.
Market Studies and Analysis used in the Production of the Assessment Value
In performing a market analysis as part of the assessment value production, a Member
must:
identify the Real Estate/property under consideration, if any
collect, verify, and report all pertinent data;

define and delineate the market area;

identify the supply and demand conditions that make up the specific real
estate market;
identify and measure the effect of anticipated development or other changes;
identify and measure the effect of anticipated economic or other changes;
detail the reasoning that supports the analyses, opinions, and conclusions;
and
reconcile the data into a final recommendation, opinion,
and/or conclusion.
Canadian Uniform Standards of Professional Appraisal
Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 19. Mass Appraisal Standard -

Jurisdictional Exception
Every assessment jurisdiction across Canada is governed by its own provincial,
territorial, municipal, or local legislation, rules, or procedures.
As such, a Jurisdictional Exception may apply to sections of CUSPAP where an
assessment administration is subject to provincial/territorial laws and
assessment case law [see 3.41].
A Member may claim a Jurisdictional Exception where:
legislative requirements override CUSPAP; or
procedural rules of the assessment appeal process prohibit the Member from
providing information required by CUSPAP.
When a Jurisdictional Exception is being claimed, a Member must be able to
explain and justify why the exception is being claimed and provide the legislative or
other authoritative reference supporting the Jurisdictional Exception.
The assessment appeal process varies across Canada according to prevailing legislation
and assessment jurisdiction.
Depending on location, the value defence process may be based on the
assessment value as determined through the Mass Appraisal process or it may
be open to argument based on the fee simple valuation of the subject property
as of the assessment date.
It is the procedural rules or legislative requirements of the assessment
jurisdiction that prevail over this Standard and must be adhered to in the
adjudication of the appeal process, which will ultimately determine which
Standard applies: the Mass Appraisal Standard, the Real Property Appraisal
Standard, or the Consulting Standard.

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix A -

APPENDIX A - INDEX
Each entry in the index includes a reference code. The codes refer to the corresponding
sections of the Standards. Each item in the index references the section(s) where they
appear.

Introduction [section 1] Consulting Standard – Rules [section 12]

Foreword [section 2] Consulting Standard – Comments [section
Definitions [section 3] 13]
Reserve Planning Standard – Rules [section
Ethics Standard – Rules [section 4]
14]
Ethics Standard – Comments [section 5]
Reserve Planning Standard – Comments
Reporting Standard – Rules [section 6] [section 15]
Reporting Standard – Comments [section 7] Machinery and Equipment Appraisal
Real Property Appraisal Standard – Rules Standard – Rules [section 16]
[section 8] Machinery and Equipment Appraisal
Real Property Appraisal Standard – Standard – Comments [section 17]
Comments [section 9] Mass Appraisal Standard – Rules [section
Review Standard – Rules [section 10] 18]

Review Standard – Comments [section 11] Mass Appraisal Standard – Comments

[section 19]

A Appraisal Procedures 6.1.2, 6.1.3, 8.1.1,

Adjustments 10.2.3 8.2.8, 9.7, 12.1.1, 12.2.3, 14.1.1, 16.1.1,
16.2.6, 18.1.1, 18.2.2
Advertising 5.3
Appraiser, Reasonable (see Reasonable
Ad Valorem, 5.11.1.iii Appraiser) 3.62, 4.2.5, 7.1.2, 9.8
Agreement 10.2.6, 11.5, 11.6 Assemblage 8.2.11, 16.2.10, 17.2
Agreement for Sale, Options, Lease or Assessment 3.4, 3.59, 13.1, 18, 19
Listing 8.2.14, 9.13
Assumptions and Limiting Conditions 3.25,
Analyze 8.2.4, 8.2.6, 8.2.7, 8.2.10, 8.2.11, 6.2.7, 7.8.1
8.2.12, 8.2.13, 8.2.14, 9.6, 9.7, 13.2, 13.3,
13.4, 13.5, 14.2.3, 15.3, 16.2.3, 16.2.4, Automated Valuation Model 3.11, 9.7.9
16.2.5, 16.2.8, 16.2.9, 16.2.10, 16.2.11, B
16.2.12
Bias 3.13 4.2.12, 5.11
Appraisal 3.4, 3.59

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix A -

Broker 5.11.5, 5.11.7 Detrimental Conditions 3.20, 9.2.3.vi

C Disagreement 10.2.6, 11.5, 11.6
Cash Flow 9.7.6, 9.16, 13.4 Disclosure 4.2.10, 5.8
Certification 5.7.1, 6.2.9, 7.11, 7.12 Discounted Cash Flow 9.7.6
Characteristics of Property 8.2.2, 9.2, E
16.2.2
Effective Date 3.22, 6.2.5, 7.7
Clerical Assistance 3.14, 7.12.9
Exclusion 8.2.8, 16.2.6
Client 3.15, 6.2.1, 7.2
Expropriation 7.10.7
Commission 5.9
Exposure Time 3.23, 8.2.1, 9.1
Competence 3.16, 4.2.7, 5.10
External Valuer 3.24, 9.16.2
Completeness 11.5
Extraordinary Assumptions 3.25, 6.2.7, 7.9
Conduct 4.2.2, 5.1
Extraordinary Limiting Conditions 3.26,
Confidential 5.8 6.2.7, 7.9
Conflict 4.2.11, 5.9 F
Consulting 3.17, 3.58, 12, 13, 14, 15 Feasibility Analysis 3.27, 13.5
Contingent 4.2.12, 5.11 Final Value 8.2.16, 9.15, 16.2.13, 16.2.14
Continuing Professional Development Fixture 3.29, 3.45, 9.2.3.iv, 9.12.2
4.2.6, 5.6
Fractional Interest 9.2.3.vii
Co-operate 4.2.8, 5.5
Fraudulent 4.2.4
Co-signature 3.71, 6.2.9, 7.11, 7.12
G
Co-signing 5.10.4, 6.2.9, 7.11, 7.12
Geographic Competency 5.10.3, 5.10.4
Current 6.2.5, 7.7
H
D
Highest and Best Use 3.32, 8.2.6, 9.5
Data 5.7.1, 7.5.1.iii, 7.6.4.iii, 8.2.7, 8.2.15,
Hypothetical Conditions 3.33, 6.2.8, 7.10
9.6, 9.14, 10.2.3, 11.6, 12.2.2, 13.2.1.iv,
13.3.1.v, 13.5.1.v, 14.2.3, 15.3.1, 16.2.5, I
16.2.13, 17.2.2 Improvements (anticipated) 8.2.12, 9.11,
Date of Report 6.2.6, 7.8 16.2.11

Date of Review 10.2.1 Improvements (proposed) 7.10.2

Date of Sale 8.2.14, 9.13, 16.2.12 Inspection of Comparable Data 3.34, 6.2.4,
7.6
Desktop/Drive-by Report 7.1.4, 7.1.5

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix A -

Inspection of Subject Property 3.34, 6.2.4, N

7.6
O
Insurance, Professional Liability 4.2.1,
Option 8.2.14, 9.13, 9.16.2.ii, 16.2.12
5.11.7, 7.9.8
Oral Report 5.7.1
Intended Use 3.36, 6.2.2, 7.3
P
Intended User 3.37, 6.2.1, 7.2
P. App 3.19, 3.53, 5.4.3
Interest Appraised 8.2.2
Personal Property 3.56, 8.2.13, 9.2.3.iv,
Investment Analysis 3.39, 3.39, 13.4
9.12, 16, 17
J
Prior Sale 8.2.14, 16.2.12
Jurisdictional Exception 3.41, 5.3.9, 7.10.7,
Professional Assistance 3.58, 7.12
19.4.1.v, 19.8
Prospective 7.7.4, 7.8.1, 7.10.5
K
Purpose 6.2.3, 7.4
L
Q
Land Use Controls 8.2.4, 9.3
Qualifications 4.2.6, 5.4
Larger Parcel 9.10.2
R
Lease 3.41, 8.2.10, 9.2.3.v, 9.9, 16.2.8
Reasonable Appraiser 3.62, 4.2.5, 7.1.2,
Leased Fee 8.2.10, 9.9
9.6.2, 9.7, 9.8, 11.5.1
Leasehold Interest 8.2.10, 9.9
Reasoning 8.2.8, 8.2.9, 9.8, 11.2.3, 12.2.4,
Limiting Condition 3.45, 6.2.7, 7.5.1, 7.6.4, 14.2.9, 16.2.6, 16.2.7, 19.4.1.iv, 19.6.1.v
7.7.3.i, 7.9, 7.12.8, 9.7.1, 9.7.9.iii, 11.2.3,
Recertification of Value 3.63, 7.10.3
19.4.1.v
Recommendations 12.2.5, 14.2.10, 15.3
Listing of Property 8.2.14, 9.13
Reconcile 8.2.15, 9.14, 12.2.2, 13.2.1.iv,
Location 8.2.3, 9.2.3.i, 19.4.1.ii
13.3.1.v, 13.5.1.vi, 16.2.13, 19.6.1.vi,
M 19.7.1.viii
Machinery and Equipment, 3.46, 3.56, Records 3.72, 4.2.9, 5.7
3.59, 5.4.7, 6.1.3.v, 10.2.1, 16, 17
Report 3.64, 7.1
Market Analysis 3.47, 13.3, 13.5.1, 19.7.1
Reserve Fund Study 3.65, 14, 15
Market Rent 8.1.2, 9.7.5.i, 13.1.2
Responsibility 3.71, 7.12
Market Value 8.2.1, 9.5.2, 16.2.1
Retrospective 6.2.5, 7.7.3, 7.8.1, 9.1.1
Mass Appraisal 3.50, 3.59, 5.4.7.iii, 18, 19
Review 3.67, 7.6, 10, 11
Misleading 4.2.3, 5.2, 5.3

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix A -

S V
Scope of Work 3.70, 6.2.4, 7.5, 7.6, 9.16, Value 6.2.3, 7.4.1, 7.4.3, 7.7.2, 7.7.3,
10.1.1, 10.2.2, 11.5.1 7.7.4,
7.7.5, 8.1.1, 8.2.15, 8.2.16, 9.15,
Signature 3.71, 7.1.3, 7.12.10
16.2.13,
T 16.2.14
Title 9.2.3.v W
U Work-file 3.72, 4.2.9, 5.5, 5.7
Update 6.2.5, 7.7.5, 7.10.5 X
Use 8.2.5, 9.4, 16.2.3 Y
Z

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix B: Changes to CUSPAP from 2020

APPENDIX B - CHANGES TO CUSPAP FROM 2020 EDITION

The following table highlights the changes implemented by the Appraisal Institute of Canada
for the 2020 edition of the Canadian Uniform Standards of Professional Appraisal Practice
(CUSPAP).
CUSPAP 2022 Section: CUSPAP 2020 Section: Change
Moved from Section 2: Authority for interpretation and
application of these Standards is found in the AIC
1: Introduction 1: Introduction Consolidated Regulations and terms of reference of
appropriate Committees and Sub-Committees of the
Institute. (“Committees”.)
2: Organization and Compliance 2: Foreword Title changed
Text revised to plainer language.
Removed: Authority for interpretation…and Sub-Committees
of the Institute. (“Committees”.)
3: Definitions 3: Definitions Change
3.2 Administrative Review n/a added
3.7 Assessed Value 3.6 revised
3.10 Assumption 3.9 revised
3.13 Bias 3.12 revised
3.14 Clerical Assistance 3.13 revised
3.20 Detrimental Condition 3.19 revised
3.21 Discrimination added
3.23 Exposure Time 3.21 revised
3.25 Extraordinary Assumption 3.23 revised
3.28 Fee Member Appraiser 3.26 revised
3.30 Forced Sale Value 3.28 revised
3.36 Intended Use 3.34 revised
3.37 Intended User 3.35 revised
3.43 Letter of Reliance n/a added
3.44 Letter of Transmittal n/a added
3.49 Marketing Time 3.45 revised
3.52 Non-fee Member Appraiser 3.48 revised
3.53 Normal Course of Business 3.49 revised
3.55 Personal Information 3.51 revised
3.58 Professional Assistance 3.54 revised
3.62 Reasonable Appraiser 3.58 revised
3.67 Review 3.64 revised
3.71 Signature or Co-signature 3.68 revised
4: Ethics Standard Rule 4: Ethics Standard Rule Change
4.1 Requirements of Members 4.1 Revised to plainer language
5: Ethics Standard Comment 5: Ethics Standard Comment Change
5.1.2, 5.1.3 and 5.1.6 5.1.2, 5.1.3 and 5.1.6 Revised to plainer language
5.3 Misleading Advertising 5.3 Revisions to plainer language throughout section
5.4.1 5.4.1 Revised to plainer language
5.4.6 5.4.6 Added “or Mass Appraisal”
5.4.7.iii 5.4.7.iii revised
5.4.9 n/a Added

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix B: Changes to CUSPAP from 2020

Added: “only if the Report is an internal or in-house Report, and is

5.4.13 5.4.12
not provided to any outside party.”
5.7.1 5.7.7 moved
5.7.2.iii 5.7.1.iii Added: “Reporting Standard, the applicable assignment-specific”
5.7.3 5.7.5 revised
5.7.6 5.7.2 Revised to plainer language
5.8.9 5.8.9 Added “detailed written record”
5.10.3 5.10.3 Revised to plainer language
5.11.5 5.11.5 Revised to plainer language
5.11.6 5.11.6 Revised to plainer language
7. Reporting Standard Comments 7. Reporting Standard Comments Change
7.1.1 7.1.1 Revised
7.1.2 7.1.2 Added: “to protect and secure the integrity”
Revised: “their analog and digital signatures… affixing of an
7.1.3 7.1.3
electronic signature”
7.1.5 7.1.5 Revised to plainer language
Revised: “lending institution policies and federal lending
7.1.6.ii 7.1.6.ii
regulations”
7.1.7 & 7.1.8 7.1.7
7.1.9 n/a Added
7.2.3.ii 7.2.3.ii Removed: “such as assisting in resolving a formal dispute”
7.4.1 7.4.1 Revised
7.5.1 7.5.1 Revised
7.6.4 and 7.6.4.i 7.6.4 and 7.6.4.i Revised to plainer language
7.7.3 and 7.7.4 7.7.3 and 7.7.4 Revised to plainer language
7.7.4.i 7.7.4.i Revised: “based upon current market forecasts of future”
7.7.5 7.7.5 Revised to plainer language
7.8.1 7.8.1 Revised to plainer language
7.10.6 7.10.5 Revised to plainer language
7.12.2, 7.12.3, 7.12.6, 7.12.7, and 7.12.2, 7.12.3, 7.12.6, 7.12.7, and
Added: “A Designated Member”
7.12.8 7.12.8
8. Real Property Appraisal 8. Real Property Appraisal
Change
Standard Rules Standard Rules
8.1 Preamble 8.1 Revised to conform with other Preambles
8.1.2 8.1.2 Added: “and in conjunction with the Reporting Standard"
9. Real Property Appraisal 9. Real Property Appraisal
Change
Standard Comments Standard Comments
9.1.1 9.1.1 Added: “within which, a property would have sold.”
9.2.1 and 9.2.2 n/a Added
9.2.3.i 9.2.1 Added: “and the property type”
9.3.2 9.3.2 Revised
9.4.1 9.4.1 Removed: “to distinguish it from the Highest and Best Use.”
9.4.2 9.4.2 Revised: “If the existing use…”
9.5.1 – 9.5.3 9.5.1 – 9.5.3 Revised to plainer language
9.6.1 9.6.1 Revised
9.6.2 & 9.6.3 9.6.2 & 9.6.3 Revised to plainer language
9.7.5.i 9.7.5.i Revised: “to estimate the income realized”
9.7.5.iv 9.7.5.iv Revised: “projections of future income
9.7.7. & 9.7.8 n/a Added
9.7.9 9.7.7 Renumbered
9.7.10 9.7.8 Renumbered
9.8.1 9.8.1 Revised: “Reasonable Appraiser test”

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario
 Appendix B: Changes to CUSPAP from 2020

9.9.1 and 9.9.2 9.9.1 Revised

9.9.3 9.9.2 Renumbered
9.10.3, 9.11.1, 9.12.1 9.10.3, 9.11.1, 9.12.1 Revised for conformity of language
10 Review Standard Rules 10 Review Standard Rules Change
10.1 Preamble 10.1 Revised for conformity of language
10.1.6.iii 10.1.4.iii Definition moved to 3. Definitions
11 Review Standard Comments 11 Review Standard Comments Change
11.2.1 11.2.1 Revised: “of the Review Assignment”
11.2.2 11.2.2 Revised: “If the purpose of the Assignment”
Removed: “in this instance, two Standards apply for the same
11.2.2.i 11.2.2.i
Assignment”
11.2.3 11.2.3 Revised to plainer language
11.2.4 & 11.2.5 11.2.4
11.2.6 11.2.5 Revised to plainer language
12 Consulting Standard Rules 12 Consulting Standard Rules Change
12.1 Preamble 12.1 Revised for conformity of language
13 Consulting Standard 13 Consulting Standard
Change
Comment Comment
13.1.1 13.1.1 Revised: examples removed.
14. Reserve Planning Standard - 14. Reserve Planning Standard -
Change
Rules Rules
14.1 Preamble 14.1 Revised for conformity of language
14.1.2 Removed
16. Machinery & Equipment 16. Machinery & Equipment
Change
Appraisal Standard - Rules Appraisal Standard - Rules
16.1 Preamble 16.1 Revised for conformity of language
15.2 Removed
16.2.8.i & 16.2.8.ii n/a Added
18. Mass Appraisal Standard - 18. Mass Appraisal Standard -
Change
Rules Rules
18.1.1 Preamble 18.1.1 Revised for conformity of language
19. Mass Appraisal Standard - 19. Mass Appraisal Standard -
Change
Comments Comments
19.1.1, 19.1.2, 19.1.3 19.1.1 Reformatted
19.1.4 n/a Added
19.1.5 19.1.1.i Reformatted
19.1.6 19.1.2 Reformatted
19.1.7 19.1.3 Renumbered
19.2 n/a Reformatted into a separate section
19.2.1 19.1.4 Renumbered
19.2.2 19.1.5 Renumbered
19.2.2.i n/a Added
19.3.1 19.2.1 Revised: “on the assessment value”
19.6.1 19.5.1 Revised: “part of the assessment “value”
Revised: “Market Studies and Analysis used in the Production of
19.7 19.6
the Assessment Value”
19.7.1 19.6.1 Revised: “part of the assessment value production”
19.8.4.i 19.7.4.ii Revised: “based on the assessment value as determined through”

Canadian Uniform Standards of Professional Appraisal

Practice
©Appraisal Institute of Canada, Ottawa,
Ontario