Chapter 15 Key Terms & Definitions Flashcards
Accredited Appraiser Canadian Institute, Professional Appraiser (AACI, P.App)
The highest designation awarded to an appraiser of the Canadian Institute of Canada
Adjusted Value
The value of a comparable property after the appraiser has made adjustments by comparing the comparable property to the subject property
Adjustements
The amount, in dollars, of characteristics which differentiate between a comparable property and a subject property
Appraisal
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
Appraisal Institute of Canada (AIC)
A national professional organization that designates and represents professional real estate appraisers and valuation consultants nationwide
Appraiser
The accredited individual who completes the appraisal report. Only reports from accredited appraisers are acceptable in the mortgage industry.
Automated Valuation Model (AVM)
A computer program that typically uses public record data on residential properties to calculate the market value of a property
Canadian National Association of Real Estate Appraisers (CNAREA)
A national, not for profit, independent association that certifies and regulates real property appraisers in Canada
Canadian Real Estate Association (CREA)
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
Canadian Residential Appraiser (CRA)
A designation awarded to an appraiser by the Appraisal Institute of Canada
Cost approach
An approach to calculating the value of a property by determining the replacement value of a building, less depreciation plus the cost of land
Desktop appraisal
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
Direct comparison approach
An approach to calculating the value of a property by comparing it to similar properties that have recently sold
Drive-by appraisal
A type of appraisal report that combines MLS data as well as an inspection of the exterior of the subject property
Emili
CMHC’s automated underwriting system
Full appraisal
A type of appraisal report that combines MLS data with a full interior and exterior inspection of the subject property
Income approach
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
Market value
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
MySagen
Sagen’s automated underwriting system
Real Estate Institute of Canada (REIC)
An associate of professionals that has been providing advanced real estate education and certifying specialists in real estate since 1955
Risk assessment tool
An automated underwriting program
