Borealis Appraisals Ltd.
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^{Your Top FAQs on Residential Property Appraisal Services}

During a residential appraisal site visit, expect the appraiser to inspect both the interior and exterior of the home, taking notes, photos, measurements. Depending on the size of your home, the inspection could take 30 minutes to an hour to complete.

Exterior Inspection:

• Condition – We will assess the condition of the roof, siding, windows, doors, foundation, and landscaping.
• Features – We will note any exterior amenities like garages, decks, pools, or sheds.
• Location – We will consider the property’s location, including its proximity to amenities, schools, and other factors that impact value.
• Neighborhood – We will assess the neighborhood features and how they impact the property’s value.

Interior Inspection:

• Condition – We will evaluate the condition of the interior, including flooring, walls, ceilings, and fixtures.
• Layout and Functionality – We will look at the layout and functionality of the rooms, including bedrooms, bathrooms, and living areas.
• Square Footage – We willl measure the square footage of the home and note the number of rooms, bedrooms, and bathrooms.
• Features – We will note any interior features like fireplaces, basements, or attics, and their condition.
• Upgrades and Renovations – We will take note of any upgrades or renovations that have been made to the home.

Documentation:

• After confirming the permission from the occupant, we will take photos of both the interior and exterior of the home.
• We will take detailed notes on observations and findings.
• We will measure the exterior of the dwelling and draw a sketch, confirming any inaccessible points from interior measurements.

Tips for a Smooth Appraisal:

• Clean and declutter – Make sure the home is clean and tidy, and all areas are accessible including any suites, crawlspaces, garages, and outbuildings.
• Open any blinds and turn on lights – This will allow the appraiser to take quality photographs.
• Contain any aggressive pets while the appraiser conducts the inspection.
• Prepare Important Documents – Have any relevant documents readily available, such as the most recent property tax bill, strata/condo fees, or floor plans if it is a newer home.
• Be Available – It’s helpful to be present during the appraisal to answer any questions the appraiser may have and point out any unique features.
• Highlight Upgrades – If you have done any upgrades or renovations, make sure to point them out to the appraiser.
• Be Aware of Curb Appeal – A well-maintained exterior can positively impact the appraisal, so make sure the landscaping is neat and the property looks well-maintained.

An appraisal report is a confidential document. The appraiser must ensure that confidentiality is maintained and that reports are only shared with authorized parties. The scope of who can receive an appraisal may depend on the agreement between the appraiser and the client, as well as any legal or regulatory requirements that apply to the situation.

According to the Appraisal Institute of Canada (AIC), an appraisal report is typically provided to the client who ordered the appraisal, as they are the party that has contracted the appraiser for the service. The AIC outlines that the appraisal report is intended for the use of the client and may be shared with other parties only with the client’s consent.

Who is the client?
The Authorized Client of the appraisal is the individual or organization who ordered and contracted the appraisal. The appraisal request or contract establishes the appraisal / client relationship.

• If you are working directly with a lender and they ordered the appraisal, they are the authorized client.
• If you are working with a mortgage broker and they ordered the appraisal, they are the authorized client.

In order to release a copy of the appraisal report to anyone else, the appraiser would need the client’s authorization. Lenders typically do not permit appraisers to send a copy of the report to anyone outside of the appraiser / client relationship.

The term “first mortgage financing” refers to the primary or initial loan taken out on a property, typically the first in priority for repayment in case of default. Here’s why it’s called “first mortgage financing”:

• Priority of Repayment: A first mortgage has the highest priority in terms of repayment. If the borrower defaults on the loan, the lender holding the first mortgage is the first to be paid from the proceeds of the property’s sale or foreclosure, before any other creditors.
• Position in the Loan Structure: It is called “first” because it is the primary lien on the property. In the event of multiple mortgages or loans, the “first” mortgage takes precedence over any subsequent mortgages or second liens, such as a second mortgage or home equity line of credit (HELOC).
• Risk and Interest Rates: Since the first mortgage is the first in line to be repaid, it generally carries less risk for the lender compared to second or third mortgages. Because of this lower risk, first mortgages often come with lower interest rates compared to secondary loans.

In summary, first mortgage financing is the initial loan that secures the property, and its name comes from its position as the most senior lien, offering the lender priority in repayment.

Your appraisal will be ready within 1-2 business days after the date of inspection.

A reliance letter for an appraisal is a document that allows a third party, other than the client who ordered the appraisal, to rely on the appraisal report. This letter essentially extends the appraiser’s responsibility for the accuracy of the report to include the third party, under specific conditions. It is often used in situations where the appraisal might be needed by other stakeholders, such as lenders, legal representatives, or financial advisors.

Here are some key aspects of a reliance letter:

• Purpose: The reliance letter allows the third party to use the appraisal report in their own decision-making process (for example, in a loan application, litigation, or financial planning). Without this letter, the report is generally considered confidential and only intended for the party who commissioned the appraisal.
• Authorization: The letter grants the appraiser’s permission for the third party to rely on the appraisal, typically under the condition that the appraisal was performed correctly and in good faith.
• Conditions: The letter often includes terms and conditions regarding the use of the appraisal. It will typically clarify that the third party can rely on the appraisal for specific purposes but may not use it beyond the defined scope, and they may not hold the appraiser liable for any consequences outside the agreed-upon use.
• Liability: The reliance letter can sometimes outline the extent to which the appraiser is liable for any decisions or actions the third party takes based on the appraisal.

A reliance letter is commonly used in real estate transactions where multiple parties need to reference the same appraisal, ensuring that the report is legally valid for all authorized users.

Our appraisers are affiliated with the Appraisal Institute of Canada (AIC) as designated members or candidate members.

AIC-designated appraisers are recognized as the leading professionals in real estate appraisal in Canada. The Appraisal Institute of Canada is the largest and most recognized appraisal organization in the country, and its designations, such as the AACI (Accredited Appraiser Canadian Institute), are considered highly prestigious and widely respected within the industry.

AIC appraisers undergo rigorous education and training, which includes advanced courses, exams, and years of experience under supervision to achieve AACI or CRA (Canadian Residential Appraiser) designations. The AIC also provides continuing education to ensure that appraisers stay current with industry trends and regulations.

AIC appraisers are bound by a strict code of ethics and Canadian-based professional standards. These standards are among the highest in the industry and are regularly updated to reflect changes in real estate markets and appraisal practices.

AIC-designated appraisers are known for their expertise across a variety of property types, including residential, commercial, industrial, and specialized properties. They are often preferred for high-value properties, estate planning, litigation, and complex valuation assignments.

AIC members are subject to the AIC’s Professional Liability Insurance requirements, which provides added assurance to clients about the appraiser’s commitment to professional conduct and ethical responsibility. This can provide an additional layer of protection in case of disputes.

The AIC is widely recognized by government authorities, financial institutions, and courts in Canada. It has a strong regulatory oversight system in place, ensuring that members comply with established standards.

The AIC’s AACI designation is recognized internationally, which is beneficial if you are dealing with cross-border transactions or seeking appraisals for international purposes.

AIC-designated appraisers tend to offer broader expertise, higher industry recognition, and a more rigorous professional standard that can be particularly beneficial for complex, high-value, or legal matters. If you are seeking a comprehensive, high-profile, and internationally recognized appraisal, especially in cases involving complicated valuation scenarios, an AIC-designated appraiser is your best choice.

A conflict of interest arises when the circumstances are such as would undermine the ability of an appraiser to exercise the required professional judgment. In order to avoid the perception of bias or conflict of interest, it is recommended that an appraiser disclose to the client any professional services relative to the subject property if appropriate. If a new assignment will cause them to disclose a prior professional service relative to the subject property that is to remain confidential, they can simply decline the new assignment.

Two Types of Conflict of Interest 

Conflict of obligation – The appraiser cannot satisfy one obligation without sacrificing another.

In dealing with a “conflict of obligation,” the most obvious problem is when an appraiser has two or more clients whose interests at first glance appear to be in harmony, but subsequent events or a closer analysis prove to be in conflict. This has been termed “simultaneous representation.”

e.g. The appraiser received joint instructions from parties involved in a matrimonial dispute that commences in a civilized manner, but subsequently escalates. The appraiser may find themselves caught between. In such instances, the appraiser may advise the parties to get separate appraisals or should consider declining the instructions.

e.g. The appraiser receives a second appraisal instruction on the same property, but from a different client. This instance can be termed “successive representation”.

Conflicting interest – The self-interest of the appraiser, or some other person to whom the appraiser is obligated, cannot be satisfied without failing to satisfy the client’s interest. 

A Member cannot accept an assignment if they have any direct or indirect, current or contemplated, personal interest in the subject matter, the parties related to the assignment or the outcome of the assignment, unless such personal interest:

• is revealed to the client in writing and acknowledged by the client in writing;
• prior to acceptance of the assignment;
• as soon as the conflict is revealed or perceived; or
• is fully and accurately revealed in the report.