Scope| What Type of properties can a CRA P. App Appraise? (Pre Qualification)
Under the Canadian Uniform Standards of Professional Practice (CUSPAP), CRA members must use that designation in connection with the appraisal, review, or consulting on individual undeveloped residential dwelling sites and of dwellings containing not more than four (4) self-contained family housing units.
The determining factor as to whether a property is in-scope for a CRA to value is the actual "Highest and Best Use" or the "HBU" assumed for the purposes of the assignment. If the HBU, actual or assumed, is residential, then it is within scope for a CRA to value.
Also, if the property is considered a residential HBU and within the scope of a CRA, the appraiser must consider whether or not they have the competency necessary to undertake the assignment (CUSPAP Ethics Rule 4.2.7). If they feel that they do not have the requisite competency for the property in question, then it is incumbent on the appraiser to obtain the competency so that they can value the property on their own, or seek a co-signer who does have the necessary competency (CUSPAP Ethics Comment 5.10.1).
After we receive your appraisal inquiry, we will evaluate the appraisal assignment based on CUSPAP to determine whether the assignment is in-scope for a CRA to evaluate.
Scope of Work- In the Appraisal Report
As per CUSPAP 2022, scope of work in a Report describes the amount and type of information researched and the analysis applied to complete an Assignment and includes:
1.Inspection (Inspection of the subject property is mandatory, subject to any Extraordinary Limiting Condition);
2.research into physical, legal, social, political, economic and/or other factors that could affect the property;
3.data research and verification, and Inspection of comparable data;
4.documents relied upon and their availability for review by the Client or an Intended User;
5.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.