MORTGAGEBROKER mbabc.ca | 31
fraudprevention
(CUSPAP 2014), the intended user must be
identi ed by name; 'to be determined,' 'to be
con rmed,' and 'John Doe and his lenders' are
not acceptable forms of intended user.
Fraud prevention tips
To prevent valuation fraud, the Appraisal
Institute of Canada o ers the following tips:
• Look for signs of data alteration
such as: typed in data (value
conclusions in the Direct
Comparison Approach, Cost
Approach or Income Approach,
adjustments of comparable
sales), blank elds or elds where
information appears to have been
"whited-out";
• oroughly read the appraisal
report to understand the data,
the analysis and the comparable
properties relied upon to arrive at
the nal value;
• Engage a professional appraiser
to conduct an on-site inspection
or drive-by of the property to validate
information supplied as part of the mortgage
application;
• Ask the professional appraiser for a reliance
letter if you are not the original client or
intended user of an appraisal report. Reliance
letters are critical to the mortgage process.
ey are issued by the author of the report/
appraiser and provide a great cross-reference
tool to validate the value conclusion and
data from the original report.
• Contact the appraisal professional if you
suspect any fraudulent activity.
Addressing your
concerns?
Valuation fraud is a criminal activity
and should not be taken lightly. e
altering of an appraisal report for the
bene t of someone else's nancing needs
brings huge risk to the intended user who
is relying on the report to make an
important decision. For more information
please contact the Appraisal Institute
of Canada at directorprofessionalpractice@
aicanada.ca or (toll free) at 1.866.726.5996
to discuss and seek guidance.
Janice P. O'Brien is the executive director of the
Appraisal Institute of Canada-BC.
SHELL ALLOCATED
PERCENTAGE
PERCENTAGE
COMPLETE
Substructure
Foundation 5.0% 5.0%
Basement Excavation, Back Fill, Final Grade 1.4% 1.4%
Structure
Lowest Floor Construction 1.5% 0.0%
Upper Floor Construction 7.5% 7.5%
Roof Construction 2.0% 0.5%
Exterior Enclosure
Walls Below Grade 11.0% 11.0%
Walls Above Grade 15.0% 5.0%
Windows & Entrances 6.4% 0.0%
Roof Covering 2.0% 0.0%
Projections 4.2% 0.0%
INTERIORS
Partitions 6.6% 0.0%
Doors 2.4% 0.0%
Finishes
Floor Finishes 3.6% 0.0%
Ceiling Finishes 1.2% 0.0%
Wall Finishes 4.1% 0.0%
Fittings / Fixtures 3.4% 0.0%
SERVICES
Mechanical
Plumbing & Drainage 8.5% 0.0%
Heating & Cooling 4.0% 0.0%
Electrical
Service & Distribution 0.0%
Lighting & Miscellaneous Devices 2.6% 0.0%
GENERAL REQUIREMENTS & ALLOWANCES 6.6% 1.6%
100% 32.0%
TOTAL – Does not include site servicing (independent or municipal) 32.0%
CONSTRUCTION
IS
CONSTRUCTION
IS
CONSTRUCTION
IS
Partitions
CONSTRUCTION
IS
Partitions
Doors
CONSTRUCTION
IS
Doors
IN
PROGRESS
IN
PROGRESS
IN
PROGRESS
IN
PROGRESS
Floor Finishes
IN
PROGRESS
Floor Finishes
Ceiling Finishes
IN
PROGRESS
Ceiling Finishes
