Chapter 15 Key Terms & Definitions

Question 1

Accredited Appraiser Canadian Institute, Professional Appraiser (AACI, P.App)

Answer 1

The highest designation awarded to an appraiser of the Canadian Institute of Canada

Question 2

Adjusted Value

Answer 2

The value of a comparable property after the appraiser has made adjustments by comparing the comparable property to the subject property

Question 3

Adjustements

Answer 3

The amount, in dollars, of characteristics which differentiate between a comparable property and a subject property

Question 4

Appraisal

Answer 4

A report produced by a designated appraiser that determines the market value of an interest in land using accepted valuation techniques based on the purpose of the appraisal for a specific client

Question 5

Appraisal Institute of Canada (AIC)

Answer 5

A national professional organization that designates and represents professional real estate appraisers and valuation consultants nationwide

Question 6

Appraiser

Answer 6

The accredited individual who completes the appraisal report. Only reports from accredited appraisers are acceptable in the mortgage industry.

Question 7

Automated Valuation Model (AVM)

Answer 7

A computer program that typically uses public record data on residential properties to calculate the market value of a property

Question 8

Canadian National Association of Real Estate Appraisers (CNAREA)

Answer 8

A national, not for profit, independent association that certifies and regulates real property appraisers in Canada

Question 9

Canadian Real Estate Association (CREA)

Answer 9

One of Canada’s largest single-industry trade associations, representing more than 92,000 real estate brokers and agents working through more than 100 real estate Boards and Associations

Question 10

Canadian Residential Appraiser (CRA)

Answer 10

A designation awarded to an appraiser by the Appraisal Institute of Canada

Question 11

Cost approach

Answer 11

An approach to calculating the value of a property by determining the replacement value of a building, less depreciation plus the cost of land

Question 12

Desktop appraisal

Answer 12

A type of appraisal report that determines a value for the subject property based on MLS reports, including data on recent sales and data on recent listings

Question 13

Direct comparison approach

Answer 13

An approach to calculating the value of a property by comparing it to similar properties that have recently sold

Question 14

Drive-by appraisal

Answer 14

A type of appraisal report that combines MLS data as well as an inspection of the exterior of the subject property

Question 15

Emili

Answer 15

CMHC’s automated underwriting system

Question 16

Full appraisal

Answer 16

A type of appraisal report that combines MLS data with a full interior and exterior inspection of the subject property

Question 17

Income approach

Answer 17

An approach to calculating the value of an income producing property through the usage of the net operating income and a capitalization rate typical for that type of property and the area in which it is located

Question 18

Market value

Answer 18

The amount, in Canadian funds, for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing, where the buyer and seller each have acted knowledgeably, prudently, and without pressure

Question 19

MySagen

Answer 19

Sagen’s automated underwriting system

Question 20

Real Estate Institute of Canada (REIC)

Answer 20

An associate of professionals that has been providing advanced real estate education and certifying specialists in real estate since 1955

Question 21

Risk assessment tool

Answer 21

An automated underwriting program