APPLIED EXPERIENCE PROGRAM GUIDELINES

Transcription

1 APPLIED EXPERIENCE PROGRAM GUIDELINES (March, 2012) Applied Experience Committee Appraisal Institute of Canada 403 ~ 200 Catherine Street Ottawa, Ontario K2P 2K9

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3 INTRODUCTION... 3 Steps to Completion of the Experience Requirements of AEP... 3 GETTING STARTED... 3 Enrolment in the Applied Experience Program Eligibility... 3 AEP Duration - Minimum Time... 4 Fees & Enrolment Process... 5 AEP Progress Report (Appendix B)... 5 Terminating a Mentoring Agreement... 6 The Candidate Mentor Relationship (Appendix F)... 6 Mentor Definition... 6 Candidate Obligations:... 6 Mentor Obligations:... 7 First Principles of Value (Appendix C)... 7 Professional Competencies (Appendix D)... 8 Recognized Areas of Applied Experience... 9 AE Examinations - Eligibility... 9 Certification of Readiness THE EXAMINATION PROCESS Step One Applied Experience Written Examination Examination Design and Administration Pass Mark Time Allotment Locations Registration Rules and Regulations for Examinations Candidates with Disabilities Grading Marking Examination Results How to Prepare Designation Application Step Two Professional Competency Interview Applied Experience Program Guidelines Revised March,

4 About the CRA and AACI Professional Competency Interview APPENDICES: Appendix A Applied Experience Enrolment Agreement Appendix B AEP Progress Report Appendix C First Principles of Value Appendix D AIC s Professional Competencies Appendix E Professional Resume (template) Appendix F Mentor & Mentee Resources Appendix G BDI Resources Applied Experience Program Guidelines Revised March,

5 INTRODUCTION Members of the Appraisal Institute of Canada (AIC) aspiring to designated status must successfully complete: The AIC Professional Practice Seminar within the five-year period preceding his or her enrolling in the AEP; The requirements of the Applied Experience Program (AEP); These include: o Successful completion of required mentored experience; o Successful completion of the Applied Experience written examination; and o Successful completion of the oral Professional Competency Interview. All education and curriculum requirements leading to the designation of choice. The AEP ensures that all newly designated members, with the help of their mentor(s), have obtained relevant experience in the application of the First Principles of Value (Appendix C) in a professional setting, and have developed the professional competencies expected by the clients of AIC members. The mentoring process ensures that candidates are guided in their development and in the application of the first principles of value and professional competencies. Steps to Completion of the Experience Requirements of AEP 1. Formal enrolment in the AEP through the Applied Experience Enrolment Agreement (Appendix A) filed with the member s provincial affiliated association office. 2. Completion of a minimum of one year of mentored experience within the last two-year period preceding the application for sitting the CRA designation AEP written exam for the CRA designation or a minimum of two years within the last four-year period preceding the application for sitting the AACI designation AEP written exam for the AACI designation. 3. At the end of their mentored experience the candidate and his/her mentor are required to submit to the member s provincial affiliated association office, the certification of readiness report, professional resume (Appendix E) and the completed AEP Progress Report (Appendix B), mandatory for those enrolled after June 14, 2011 and optional for those enrolled prior to June 14, 2011, duly signed. The candidate will also be required to provide supporting documents confirming that they have successfully completed the AIC program of study and curriculum requirements to be eligible for the AEP examinations (written exam and Professional Competency Interview). GETTING STARTED Enrolment in the Applied Experience Program Eligibility Candidates must formally enroll in the AEP; to be eligible the member must: Applied Experience Program Guidelines Revised March,

6 1. Be a Candidate or CRA member of AIC in good standing, who has secured the agreement of a qualified mentor to guide them over the course of the program; and 2. Have successfully completed the AIC Professional Practice Seminar within the five (5) year period immediately preceding enrolment in the AEP. Documentation supporting completion of these requirements must be included with the AE Enrolment Agreement (if not already on file with the provincial affiliated association office). AEP Duration - Minimum Time The minimum experience requirement is counted from the day of acceptance into the AEP. Candidate shall be notified by the provincial affiliated association office of the date of acceptance. Candidates Proceeding to CRA or AACI Designation Commencing after the submission of the approved AE enrolment agreement (Appendix A) Candidates must attain no less than: one year of mentored applied experience within the last two-year period preceding his or her application for sitting the CRA AE written exam; or two years of mentored applied experience within the last four year period preceding his or her application for sitting the AACI AE written exam. Note: Candidates are reminded that the suggested time requirement is a minimum expectation. Only when the mentor has certified that the Candidate has acquired the necessary Professional Competencies and demonstrated knowledge of the First Principles of Value, and the Candidate has completed all other requirements for designation, and the necessary documentation and fee has been provided to the Candidate's provincial affiliate office, will the Candidate be ready to move on to the final written examination and Professional Competency Interview. CRAs Proceeding to the AACI Designation CRAs who wish to proceed to the AACI designation are required to complete a minimum of one (1) additional year of mentored experience which must immediately precede the date of application for sitting the AE examinations (written exam & Professional Competency Interview.)The additional year will commence after the submission and approval of the AE Enrolment Agreement (Appendix A) and any required fee or supporting documentation to the provincial affiliated office. Applied Experience Program Guidelines Revised March,

7 Fees & Enrolment Process The AIC provincial affiliated associations administer the AEP as defined in these guidelines. While the AE Enrolment Agreement is available in Appendix A, Candidates must contact their provincial affiliated associations to obtain fee information. The completed AE Enrolment Agreement MUST be submitted to the appropriate provincial affiliated association office. An enrolment agreement will be accepted only when the following documentation has been completed and submitted to the provincial affiliated association: The AE Enrolment Agreement (Appendix A) duly signed wherein both mentor(s) and candidate agree to comply with the terms and conditions of the AEP, Accompanying documentation which verifies the completion of the requirements as outlined in the above section entitled Eligibility. Payment of all applicable fees as established by the provincial affiliated associations ( The AE term will not start until the AE Enrolment Agreement (Appendix A) has been signed and registered with the appropriate provincial affiliated association, and approved by the Provincial Committee of Examiners (or equivalent body) when required. AEP Progress Report (Appendix B) All Candidates and Mentors who are entering into a mentoring agreement as of June 14, 2011 are required to complete and sign the AEP Progress Report part 1 & 2. The AEP - Progress Report has been developed as a mandatory Mentoring tool to guide Candidates and Mentors toward the completion of a successful AEP. Those who have enrolled prior to June 14, 2011, will not be required to complete and sign the AEP - Progress Report form but are encouraged to do so. Those not submitting the AEP Progress Report (Appendix B) must supply their provincial affiliated association with the following reports that confirm that the applied experience requirement has been satisfied: Mentor Report This report should briefly describe the candidate s experience, application and understanding of the First Principles of Value and Professional Competencies. The mentor will also recommend whether the Candidate is ready for designated member status based on their applied experience. Candidate Report This report must contain a high-level description of the applied experience acquired and the frequency and involvement of the First Principles of Value and Professional Competencies. It is recommended that this report not exceed six pages. Applied Experience Program Guidelines Revised March,

8 These reports along with the Applied Experience Enrolment Report and the candidate s professional resume (Appendix E) will be provided to the Professional Competency Interview panel in advance of the interview. Terminating a Mentoring Agreement Either candidate or mentor may terminate this agreement by advising the appropriate provincial affiliated association office in writing indicating the reason(s) for termination and termination date. The candidate is then responsible for identifying a new mentor, and filing a new AE Enrolment Agreement (Appendix A) with the provincial affiliated association. It is to be noted that credit for accumulated experience within the AEP is retained. In addition the AEP Progress Report (Appendix B) (if available) is transferred to the new mentor for completion. The Candidate Mentor Relationship (Appendix F) Mentor Definition The mentor must be a designated AIC member. It is preferable that the mentor has expertise in the same discipline as the candidate. In rare situations, a candidate may apply to AIC s Professional Qualification and Competency Committee (PQCC) for an exception to this requirement. Exceptions may be granted, for example, in situations where distance or specialization prohibits mentoring by a designated member. The mentor may be a retired member 1. In many instances, a candidate s employer will also serve as a mentor, but the mentor need not have any employment relationship with the candidate. In cases where the mentor is also the candidate s supervisor/ co-signer, a separate registration of the co-signing relationship is required, in accordance with the Institute s policies on co-signing. See for information on this requirement. Candidate Obligations: It is the obligation of the candidate to: select a mentor(s) that they judge best able to support their success in the AEP; complete and sign the AE Enrolment Agreement to be reviewed and filed with the candidate s provincial affiliated association office; schedule regular meetings with the mentor as required; submit any documentation requiring mentor review to the mentor in a timely fashion; keep the mentor informed of progress in academic pursuits and applied experience; complete the AEP - Progress Report throughout their AE with their mentor (see AEP Progress Report to determine if this is mandatory); strive to achieve the knowledge and experience that provides the capacity for a comprehensive understanding of a broad range of valuation topics and the resourcefulness to pursue that understanding. 1 A retired member may serve as a mentor; however they cannot act as co-signor. Applied Experience Program Guidelines Revised March,

9 Mentor Obligations: It is the obligation of the Mentor to: complete and sign the AE Enrolment Agreement to be reviewed and filed at the member s provincial affiliated association office; help the candidate understand and demonstrate the importance of First Principles of Value as they relate to a wide scope of work; guide the candidate to achieve the knowledge and experience that provides the capacity for a comprehensive understanding of a broad range of valuation topics and the resourcefulness to pursue that understanding; advise the candidate on the development of Professional Competencies (Appendix D) as defined by AIC; complete the AEP - Progress Report throughout the AEP with the candidate (see AEP Progress Report to determine if this is mandatory); produce a Certification of Readiness and the completed AEP Progress Report duly signed at the end of the AEP; and recommend that the candidate be eligible for the appropriate designation and for the AEP examinations (written exam and Professional Competency Interview) as their final steps toward earning the designation. Candidates and their mentors MUST work together to ensure that the candidate is prepared to demonstrate, in the AE examinations (written and oral), their proficiency in the application of the First Principles of Value (Appendix C) and their development and acquisition of the necessary Professional Competencies (Appendix D). First Principles of Value (Appendix C) There are many aspects to a successful career in real property valuation and in meeting the needs of potential clients. However, the key to the accurate valuation of real property is a thorough understanding of the inter-relationship between the economy, the law and local market conditions. The First Principles of Value are critical concepts for the accurate valuation of real property and form the basis for the assumptions you, as an appraiser, will make in reporting to clients. In order to achieve either the CRA or AACI designation, candidates must have experience and be proficient in the application of these First Principles of Valuation, which include: Problem Identification Property Content/Property Rights Function/Purpose Highest & Best Use Land Use Regulations Economic Variables Legal Issues Research Applied Experience Program Guidelines Revised March,

10 Utilization of these principles will help ensure a focused and disciplined approach to your analysis and will facilitate communication with clients on the underlying factors that comprise the value of the real property in question. Professional Competencies (Appendix D) In addition to demonstrating knowledge and application of the First Principles of Value, candidates must acquire certain competencies that will be evaluated by a panel of examiners at the Professional Competency Interview (PCI). What is a Competency? A competency is defined as a skill, knowledge, ability or behavioural characteristic that is associated with superior performance. There are two basic levels of competencies: technical and behavioural. Technical competencies are predominantly about acquired knowledge and technical abilities and skills. Behavioural competencies, such as communication skills or critical thinking skills can be harder to see and develop but are key indicators of how an individual approaches his/her work. The PCI is the final step on the candidate s path to designation and a successful performance in the interview is testimony that an individual is now ready to be granted the status of designated member. All competencies identified as key competencies by AIC should be: Observable Measurable Linked to professional requirements for designated members of AIC Based on strong performance Candidates must be prepared to demonstrate that they have acquired AIC s five (5) critical professional competencies (Appendix D), using real life situations to illustrate their experiences. An AEP Progress Report (Appendix B) was developed as a mentoring tool for mentors and candidates. The AEP Progress Report is to be used by the mentor and candidate throughout their Applied Experience Program (AEP), to document real life situations where: the candidate has demonstrated the First Principles of Value; and the candidate has acquired the AIC s Five Professional Competencies. This document will provide structure to the AEP Mentoring Program and will assist in the preparation of the AE examinations -Written Exam and Professional Competency Interview (PCI). For more information on how to prepare for the PCI visit: Applied Experience Program Guidelines Revised March,

11 Recognized Areas of Applied Experience The AEP was designed to reflect the increasingly multidisciplinary scope of practice of professional appraisers. In dealing with real property and considering the First Principles of Value, candidates may choose to develop expertise and experience in one or more of the following recognized areas of applied experience: All Forms of Valuation Negotiation Arbitration/Alternative Dispute Resolution Strategic Advice Feasibility Highest and Best Use Studies Lease Administration Financing Consulting Site Selection Analysis Research Property Management Property Development Land Surveying Engineering Right-of-Way Agents Litigation Property Sales Due Diligence Professional Liability/Appraisals/Litigation (insurance) Appraisal Review Management of Valuation Related Organizations Native Land Claims Expropriation Project Management Environmental Specialization Land Agency Land Use Planning Quantity Surveying Accounting Law Forestry Security Issues AE Examinations - Eligibility In order to sit for the written examination or professional competency interview candidates must have successfully completed all requirements for the relevant designation and provided the required supporting documentation to his or her provincial affiliated association office. This includes the successful completion of: all curriculum and educational requirements; the Professional Practice Seminar (PPS) prior to taking the written exam and sitting the Professional Competency Interview (PCI); for both the written exam and the PCI no more than 5 years may elapse since the date of your last PPS otherwise the PPS must be completed again; the appropriate Guided Case Study (GCS) or equivalent; the minimum term of required mentored applied experience, along with a Certification of Readiness letter by the mentor accompanied by the completed mandatory AEP - Progress Report (Appendix B)( or for those who have started their AE prior to June 14, 2011 the required candidate report not to exceed six pages.) Applied Experience Program Guidelines Revised March,

12 Supporting documentation verifying the successful completion of these requirements must be submitted in order to be eligible for the AE examinations (written exam and PCI), if not already on file at the provincial affiliated association office. Certification of Readiness At the completion of the AE term and prior to the candidate attending the AE examinations, the candidate and mentor must provide the member s provincial affiliated association with the following reports confirming that ALL of the Applied Experience requirements have been satisfied: Mentor s Certification of Readiness This report/letter should briefly describe the candidate s experience, application and understanding of the First Principles of Value and Professional Competencies. In his report, the mentor will also recommend whether the candidate is ready for the designated member status based on the candidate s applied experience. AEP - Progress Report Part 1 & 2 This completed report signed by the candidate and his/her mentor(s) must be submitted with the Mentor s Certification of Readiness to the provincial affiliated association office for all candidates enrolled in the AEP on June 14, 2011 or after. Those who registered in the AEP prior to June 14, 2011, may either: submit the AEP Progress Report, or provide a report containing a high-level description of the applied experience acquired in the application of the First Principles of Value and the AIC five (5) Professional Competencies during the AE. Résumé (Appendix E) Candidate s professional résumé Note: These reports along with the applicable AE Enrolment Agreement will be provided to the Provincial Committee of Examiners in advance of the interview. THE EXAMINATION PROCESS Step One Applied Experience Written Examination This is a written examination that assesses the candidate s understanding of the First Principles of Value as they relate to experiential knowledge. Experiential knowledge refers to the wisdom gained from experience and insight in applying academic knowledge to actual or simulated situations. Applied Experience Program Guidelines Revised March,

13 The examination consists of: One case study question (40% of the mark) selected by the candidate from at least four options provided. Three short answer questions (60% of the mark) based on work experience (remunerate or not) selected from a set of at least seven options. Examination Design and Administration The examination questions were developed by the AIC in consultation with AIC s education partner, the Real Estate Division (RED) of the Sauder School of Business at the University of British Columbia, the AIC s agent for delivery of the written exam. The examination content and marking guidelines are determined by AIC. The administration of the examination is the responsibility of the RED. Pass Mark The passing grade for the written examination is set at 70 percent. Candidates meeting this standard will be able to move on to the PCI, the final step leading to either the AACI or the CRA designation. Those candidates who do not achieve a passing grade must rewrite the written exam at a future date. A candidate, who fails to pass the examination after three attempts, must apply to the Applied Experience Committee for permission to rewrite a fourth time. Candidates may be required to complete additional education and/or experience before being permitted to sit the examination the fourth time. Time Allotment Candidates have three hours to complete the exam. Locations The Examination is offered in accordance with the RED examination schedule, and will be available at examination centres across the country. Click here for a list of dates and locations. Registration Candidates who have completed all curriculum and designation requirements should register online with the RED 30 days prior to the scheduled exam date.. Examination registrations will not be accepted by RED until the candidate's exam eligibility has been confirmed by the AIC provincial affiliate. To register for the examination visit al_development_courses/appraisal_institute_of_canada Rules and Regulations for Examinations The RED sets regulations in place to ensure a secure environment for students writing examinations and to assure the integrity of the entire process is maintained. The regulations also include policy on the rewriting and deferral policies and penalties for failure to comply. Click Applied Experience Program Guidelines Revised March,

14 al_development_courses/appraisal_institute_of_canada for the regulations for the written examination. Candidates with Disabilities Any student who identifies a disability that requires a modified examination setting will be referred directly to the UBC Disability Resource Centre (DRC). They are the experts in this area and are able to both assess and accommodate students with disabilities. Students in this situation should contact the RED Examinations department for a referral. Grading The written examinations will be graded by trained markers who are designated members of the AIC who hold matching designations to the designation the candidate is seeking. There are no appeals for the written exam, however, candidates may request a Post Examination Review (PER) through RED. The written exam is blind marked to ensure objectivity in the marking process. Marking If there is a problem verifying the location of the property identified on the exam, UBC will approach the student for verification. If the student cannot provide proof of the existence of the property the issue will be referred to the AIC Director of Professional Practice for review. CUSPAP violations encountered on the written exam will be forwarded by UBC to the AIC Director of Professional Practice. Examination Results You can expect to receive exam results by mail in 4-6 weeks. Once a candidate has successfully completed the written examination, the candidate will be ready to register for the PCI. How to Prepare For information on how to prepare for the written examination please visit: Sample examination questions are provided in this section of the Website. Designation Application Following the successful completion of the AE written exam the member must contact his or her provincial affiliated association office with confirmation of successful completion of the written exam. The provincial affiliated association office will: Provide the member with an application for designation; The member will return, to the provincial affiliated association, the completed application along with the required supporting documents and fees; Applied Experience Program Guidelines Revised March,

15 Following AIC s verification of the in good standing status of the member, the provincial affiliated association office will schedule the Professional Competency Interview. Step Two Professional Competency Interview The PCI is the final step on the path to designation. It is based on Behavioural Descriptive Interview (BDI) techniques, and is carried out by trained examiners. In order to be successful at the PCI, candidates are required to satisfactorily answer a behavioural type question for each of the five AIC professional competencies. For information on how to prepare for the PCI visit: About the CRA and AACI Professional Competency Interview Interviews will be scheduled by the provincial affiliated association offices as required. The PCI will be conducted by panels of examiners who have been trained by AIC in BDI techniques. The panel will be provided with a copy of your professional résumé, and the AEP Progress Report, part 1 & 2 (Appendix B) prepared by you and your mentor so that examiners have an understanding of your experience. More information on BDI techniques (Appendix G) and a template for the Résumé (Appendix E) are provided as appendices to these Guidelines. The interview is approximately one hour in length. The purpose of the PCI is to provide a formal face to face meeting where panel members will assess the candidate s qualities and competencies in areas considered critical for success in the profession. The five professional competencies on which candidates are tested are described in Appendix D. Candidates are advised to keep a diary of experiences (AEP Progress Report) related to the acquisition of these competencies, to assist them in preparing for the interview. It would be useful to review your AEP Progress Report submitted to the Provincial Committee of Examiners in preparation for the interview. The interview will be conducted in private, with no interruptions from phones, pagers, communications devices or other people. Examiners will take notes, and may ask follow up questions that will prompt you to expand on your answer. Competencies being tested include market analysis, integrity, critical thinking, relationship building and communications, and self development. A guide to PCI preparation is provided at Applied Experience Program Guidelines Revised March,

16 APPENDICES: Appendix A Applied Experience Enrolment Agreement Appendix B AEP Progress Report Appendix C First Principles of Value Appendix D AIC s Professional Competencies Appendix E Professional Resume (template) Appendix F Mentor & Mentee Resources Appendix G BDI Resources Applied Experience Program Guidelines Revised March,

17 APPLIED EXPERIENCE ENROLMENT AGREEMENT The completed AE Enrolment Agreement must be submitted to the appropriate Provincial Affiliate Association office Applied Experience Agreement: In order to achieve use of the Canadian Residential Appraiser (CRA) or Accredited Appraiser Canadian Institute (AACI) designation, a candidate must have experience and be proficient in the First Principles of Value. Candidates must also demonstrate they have acquired five professional competencies in the Professional Competency Interview (PCI) using real life situations to illustrate their experiences. In executing the Applied Experience Agreement the undersigned, agree to comply with the Applied Experience Program (AEP) as set out in the Applied Experience Program Guidelines published by the Appraisal Institute of Canada ( The undersigned Candidate is entering the AEP working towards (check one only): OR AACI designation of the Appraisal Institute of Canada. The mentorship period is a minimum of two years to obtain the AACI designation. CRA designation of the Appraisal Institute of Canada. The mentorship period is a minimum of one year to obtain the CRA designation. This Applied Experience Agreement is made between (the Mentor) and (the Candidate), the day of, 20. Candidate s Statement: I support the objectives of the AEP and agree to obtain real life experience in the First Principles of Value and Professional Competencies as outlined in the AEP Guidelines. I am committed to work diligently towards my designation and to attain qualification as soon as is practicable. I will: Complete the AEP Progress Report throughout the AEP. An electronic copy of the AEP Progress Report will be provided by your provincial AIC office upon enrolment in the AEP. Arrange periodic reviews with my Mentor to assess experience attained. Strive to achieve the necessary knowledge and experience required for the designation sought. At the end of the AEP I will produce a Certification of Readiness and the AEP - Progress Report duly completed and signed. Candidate s Name: Member Number: Address: Signature of Candidate: Mentor s Statement: As a Mentor I am committed to assisting the Candidate in the understanding of the First Principles of Value and Professional Competencies of the AEP as outlined in the AEP Guidelines. I will: Instruct and guide the candidate in First Principles and Professional Competencies of the AEP. Complete the AEP - Progress Report throughout the AEP. Arrange periodic reviews with the Candidate to review the work and provide guidance for improvement where necessary. Provide the Candidate reasonable and necessary assistance as requested to qualify to be designated by the Appraisal Institute of Canada. Guide the Candidate to achieve knowledge and experience required for the designation sought. At the end of the AEP I will produce a Certification of Readiness and the AEP - Progress Report duly completed and signed. Mentor s Name: Member Number: Mentor s Designation: Address: Signature of Mentor: AEP Enrolment Agreement Revised: May 3, 2012

18 APPLIED EXPERIENCE PROGRAM - PROGRESS REPORT First Principles - Introduction Real property consulting may include valuation, use strategies, feasibility studies, litigation strategies, academic pursuits, and forecasting and strategic implementations. A common thread in each real property discipline is the need to understand the interrelationships between forces of economics, law and the marketplace on real property. The reliance on the First Principles of Value as developed by the Appraisal Institute of Canada (AIC), provides a focused and disciplined approach to the requisite analyses and interactions between the various disciplines that real property consultants may pursue. In order to achieve use of the CRA or AACI designation, the candidate must have experience and be proficient in the First Principles of Value. It is mandatory that Candidates utilize this AEP - Progress Report throughout their Applied Experience Program, to document situations where they have demonstrated the First Principles of Value. The completed document must be forwarded to your provincial AIC office along with the Certification of Readiness by the mentor in order to move on to the AEP examinations (AE written exam and Professional Competency Interview). Candidate Criteria for Completeness: (while each Principle may be utilized in each report the candidate should NOT use the same example on the form). The examples are to demonstrate to the committee of examiners a broad range of knowledge and experience. Each section must have a minimum of 4 examples Each section must be initialed and dated Progress report must be signed & dated Mentor Criteria for Completeness: Each section must have an example or remark on the application of the principle and competency Each section must be initialed & dated Progress report must be signed & dated AIC FIRST PRINCIPLES OF VALUE PROBLEM IDENTIFICATION PROPERTY CONTENT/PROPERTY RIGHTS FUNCTION/PURPOSE HIGHEST & BEST USE LAND USE REGULATIONS ECONOMIC VARIABLES LEGAL ISSUES RESEARCH Mentor: I acknowledge that each AIC First Principles of Value was examined during the Applied Experience Program and that is proficient in the First Principles of Value. Candidate s Name Mentor s Signature: ID: Designation: Candidate: I feel confident that I have acquired all of AIC First principles of Value during my Applied Experience Program. Date: Program completed: Candidate s Signature: ID: Designation sought: Date: Program completed: 1 Appendix B Revised: March, 2012

19 PROBLEM IDENTIFICATION The initial step in any valuation or consulting assignment is to understand the objective of the assignment. (i) If the assignment is to opine on "market value", it is imperative to understand what is being valued and when is the value opinion to be effective. (ii) If the assignment is for a reason other than "market value" or extends beyond the issue of "market value" it remains imperative to understand the specifics of the issue being addressed in the analyses, opinions or initiative. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 2 Appendix B Revised: March, 2012

20 PROPERTY CONTENT/PROPERTY RIGHTS Property Content In order to begin any assignment, the subject property(s) must be identified under four basic heading (i) Physical understanding, to include size, shape and topography of land; size, shape and utility of improvements (as this is only the initial step, further detail will be learned during the course of the investigations); (ii) Legal understanding, to include the type of ownership (fee simple, leased fee, leasehold condominium, life estate etc.) (iii) Financial understanding, to include debt and equity elements (the exact measurement will not be understood until completion of a valuation analysis if this is the focus of the assignment, but the existence of these characteristics will help direct the requisite research or facilitate a consulting assignment), and; (iv) Location understanding, to understand the socio-economic and geographic context of the assignment. Regardless of the type of assignment/project the real estate consultant is engaged in, this fundamental knowledge is critical. For example, it may be that the issue of debt is of no consequence in a particular decision, but without the knowledge of the impact of debt on the property markets even a decision about its lack of importance in a particular assignment is unachievable. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 3 Appendix B Revised: March, 2012

21 PROPERTY CONTENT/PROPERTY RIGHTS Property Rights Real property can only be valued, manipulated or otherwise used or discussed based on two legal criteria. Firstly, the consultant must identify what use permissions are available. Secondly, the consultant must identify what uses are not permissible, or the limitations (i.e. extent) on the permissible uses. It is important to recognize that influences on property rights emanate from a variety of laws (federal, provincial/territorial, municipal, criminal, civil) and also include private agreements. Some are direct (i.e. zoning) and some indirect (i.e. capital gains taxation). The consultant must understand the property rights on the subject(s) and marketplace in general in order to conduct meaningful analyses. It is incumbent on the valuer/consultant to understand what definition of "value" is appropriate to any principles of value assignments, and clearly identify the definition in any conclusions. The traditional real estate valuation definition of fair market value (typically relied upon in appraisals completed for financing, etc.) may note the appropriate definition for an expropriation, assessment, site selection or other applications of our knowledge of principles of value. The definition relied upon provides a definable benchmark against which decisions affecting the property can be measured and presented to a third party within an appropriate context. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 4 Appendix B Revised: March, 2012

22 FUNCTION/PURPOSE The Function of the assignment may be to inform an educated client, assist a judicial body in a determination, or give guidance to a lender (with many other possibilities additional to this list). The Function of the assignment will also help guide the valuer/consultant suggesting the type of report to be prepared, estimate a reasonable fee and be assured of a reasonable time to complete the necessary tasks. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 5 Appendix B Revised: March, 2012

23 HIGHEST & BEST USE The principle enjoys a specific definition in accordance with the Appraisal Institute of Canada, as follows: "that use which, at the time of appraisal, is most likely to produce the greatest net return, in money or amenities, over a given period of time" A practical review of the concept necessitates an understanding of (i) legal permissions and limitations (see Property Rights), the permissions that are available to real property, (ii) information about what permissions may practicably be available to real property, and (iii) what uses are not and would likely remain unavailable to real property. Without this knowledge the consultant /user cannot assess the various uses achievable. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 6 Appendix B Revised: March, 2012

24 LAND USE REGULATIONS Land use regulations are considered a subset of Property Rights and Highest and Best Use, they provide: (i) the permissions that are available to real property (ii) information about what permissions may practicably be available to real property and (iii) what uses are not and would likely remain unavailable to real property. Without this knowledge, the consultant/user cannot assess the various uses achievable. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 7 Appendix B Revised: March, 2012

25 ECONOMIC VARIABLES Economic Variables is an all-encompassing term that catches tangible and intangible inputs to the real property market. (i) Tangible examples might be the supply of land in an identifiable area, or the availability of labour. (ii) Intangible examples might be the cost of money (interest) or inflation rates. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 8 Appendix B Revised: March, 2012

26 LEGAL ISSUES The concept is broad in its scope but inescapable in all valuation/consulting assignments. Law affects all real matters. It may be limited to Property Rights or Land Use Regulations matters. It may be the focus of the project, such as litigation strategy assignments. It may be direct such as having knowledge of an Expropriation Act, or indirect such as taxation policies or in recognizing the contingent liability when an opinion is delivered. Law may be Municipal, Provincial/Territorial, Federal or International. It is not necessary for the consultant to be an expert in all aspects of law. But it is incumbent on the consultant to be aware of changes in law and have a basic knowledge of those aspects of law having a direct bearing on a particular assignment (i.e. Expropriation/Assessment Acts). Furthermore, each consultant should establish relationships with lawyers expert in a variety of aspects of law, so that they can be made aware of changes that could impact on real estate consulting matters. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 9 Appendix B Revised: March, 2012

27 RESEARCH Valuation and consulting assignments are typically a mixture of fact and opinion. Presumably the later is predicated on the interpretation of the former. Without appropriate facts, opinions are without foundation. Research is typically divided between (i) gathering knowledge of the subject(s) and (ii) appropriate market evidence. Without adequate knowledge of the subject the consultant is unable to offer any constructive comment on the real property. For example, a site may be 43,560 square feet (one acre). This could mean a site with dimensions 66 feet x 660 feet, perhaps inappropriate for a residential home, but ideal for a roadway. Alternatively, the site could be about 208 feet wide, with the opposite appropriate uses. Thus, adequate knowledge of the subject property, coupled with knowledge of the problem is necessary The real estate consultant cannot operate in isolation of the marketplace. Once the inputs necessary to the solution of a problem are identified they can be reached. The accuracy of the evidence is of vital importance. Depending once again on the Problem, the research surrounding the market evidence may be as detailed as the research conducted on the subject property. Local standards and purpose of the assignment may dictate otherwise. But in all circumstances there must be at least a reasonable amount of research in order for the consultant to rely reasonably on such data. The information confirmation process is often referred to as due diligence. CANDIDATE Examples of situations where I have applied this Principle I feel confident that I can demonstrate having acquired this Principle using personal work experience. Candidate initial: Date: MENTOR 1.Example of situations 2.REMARKS on Candidate s applications I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 10 Appendix B Revised: March, 2012

28 AIC APPLIED EXPERIENCE PROGRAM PROGRESS REPORT Competencies- Introduction Candidates must demonstrate they have acquired five professional competencies in the Professional Competency Interview (PCI) using real life situations to illustrate their experiences. It is mandatory that Candidates utilize this AEP - Progress Report throughout their Applied Experience Program, to document situations where they have demonstrated the required professional competencies. A review of this checklist in advance of the PCI will assist the Candidates to prepare for the PCI. The completed document must be forwarded to your provincial AIC office along with the Certification of Readiness by the Mentor in order to move on to the AEP examinations (AEP written exam and Professional Competency Interview). Candidate Criteria for Completeness: Each section must have a minimum of 2 examples Each section must be initialed and dated Progress report must be signed & dated Mentor Criteria for Completeness: Each section must have an example or remark on the application of the principle and competency Each section must be initialed & dated Progress report must be signed & dated AIC PROFESSIONAL COMPETENCIES Mentor: I acknowledge that each AIC Professional Competency was examined during the Applied Experience Program and that is proficient in each competency. Candidate s Name Mentor s Signature: ID: Designation: Date: Program completed: Candidate: I feel confident that I have acquired all of AIC Professional Competencies during my Applied Experience Program and I can demonstrate proficiency. Candidate s Signature: ID: Designation sought: Date: Program completed: 11 Appendix B Revised: March, 2012

29 Competency -1 - Market Analysis The professional duties of an appraiser require the ability to collect and analyze information and statistics regarding the market characteristics of the area that one practices in. People with this competency demonstrate an understanding of administrative aspects related to real property transactions and property development and are aware of the unique economic variables within their areas of practice. They use this knowledge to effectively complete assignments. Responses in the Professional Competency Interview will be evaluated on the demonstration of the following key actions: Understands how land transactions are recorded within their province Understands the role that provincial & local government play in relation to the use & development of real property Aware of planning and zoning by-laws Aware of emerging trends and transitional areas relative to real property within their local area. Recognizes, verifies and utilizes various methods of obtaining market data, and statistical information relative to the type of valuation or consulting assignments that the Candidate is involved in. CANDIDATE Examples of situations where I have demonstrated using this competency I feel confident that I can demonstrate having acquired this Competency using personal work experience. Candidate initial: Date: MENTOR 1) Example of situations 2) REMARKS on Candidate s uses of this competency I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 12 Appendix B Revised: March, 2012

30 Competency -2 - Integrity The professional duties of an appraiser require the ability to consistently take actions that match stated values and standards. A professional appraiser is seen to have integrity, walk the talk, follow through on commitments, and welcome frankness and honesty from others even if sometimes difficult. Responses in the Professional Competency Interview will be evaluated on demonstration of the following key actions: Admits mistakes Takes a stand based on values and what is best for the organization Challenges others to live values Concerned for professional standards of practice CANDIDATE Examples of situations where I have demonstrated using this competency I feel confident that I can demonstrate having acquired this Competency using personal work experience. Candidate initial: Date: MENTOR 1) Example of situations 2) REMARKS on Candidate s uses of this competency I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 13 Appendix B Revised: March, 2012

31 Competency -3 - Critical Thinking The professional duties of an appraiser require the ability to analyze problems systematically, organize information, identify key symptoms and causes and apply solutions. This involves a demonstrated ability to use one s knowledge and experience to effectively solve problems through logical and careful analysis. Responses will be evaluated on the demonstration of the following key actions: Looks beyond apparent facts Thinks laterally to develop solutions Analyses relationships among many parts (e.g., symptoms/causes) Uses Contingency planning to anticipate obstacles and plan ahead Makes confident decisions even if controversial or challenging Provides support to projects as needed CANDIDATE Examples of situations where I have demonstrated using this competency I feel confident that I can demonstrate having acquired this Competency using personal work experience. Candidate initial: Date: MENTOR 1) Example of situations 2) REMARKS on Candidate s uses of this competency I am confident that has acquired this Competency and is able to demonstrate it in his/her work experience. Mentor initial: Date: 14 Appendix B Revised: March, 2012