Two major real estate valuation organizations, the Appraisal Institute of Canada (AIC) and RICS (Royal Institution of Chartered Surveyors), are pleased to announce the release of a joint Guidance Note for Canadian valuation professionals whose work is required to comply with both RICS’ Red Book 2013 and AIC’s Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) 2014.
Both AIC and RICS lauded the Guidance Note as an important example of how two valuation organizations can work together for the mutual benefit of their members and more broadly.
“RICS was pleased to have this chance to work with the Appraisal Institute of Canada to develop a document that will be useful for appraisers with dual memberships,” said Neil Shah, Americas managing director for RICS. "Collaborative efforts such as this one help our industry address challenges and take advantage of opportunities presented by our rapidly changing business environment.”
The Guidance Note highlights the differences between the two Standards of practice, with the intent of guiding practitioners with dual memberships to ensure that all appraisal assignments they conduct meet the highest possible standards. CUSPAP sets out the rules and content requirements that all AIC members are expected to adhere to in conducting their work, similar to the Red Book for all RICS members. AIC and RICS intend to regularly update the Guidance Note to reflect any changes to CUSPAP and the Red Book, respectively.
“This Guidance Note reflects the hard work of the Canadian Jurisdiction Application Working Group, as well as the oversight of AIC’s Professional Practice Committee, Standards Sub-Committee and leaders, as well as their RICS counterparts in London, New York and Toronto,” said AIC President Daniel Doucet, AACI, P.App, MRICS. “AIC welcomed this opportunity to collaborate with RICS in the best interest of members of both organizations and the public we both serve, and to promote our mutual commitment to the highest degree of professionalism.”
One industry player – Colin Johnston – emphasized the importance of the joint Guidance Note and effort.
“As the commercial real estate market continues to grow in its significance as a global asset class, the imperative for standardization has never been greater. By promoting a set of comprehensive standards for use in Canada, this document will help emphasize and endorse the need for increased consistency, transparency and comparability,” said Johnston, President, Research, Valuation and Advisory, Canada, Altus Group. “While advising clients on both national and international investments, we depend on accurate market data and transparency, which can differ from country to country. Working towards universal standards will help level the playing field and ultimately, improve the overall quality of information across a broader marketplace.”
The announcement of a joint Guidance Note for Canadian valuation professionals brings together two standards of practice that have traditionally run parallel to one another.