August 9, 2022
Notification to All Members:
The following proposed amendments to the CNAREA By-laws are to be voted on at the upcoming AGM, on Tuesday September 13, 2022. If you have any questions, please forward them by email to either Kevin Lonsdale (Executive Director) at executivedirector@cnarea.ca or Rob MacDonald (Chief Executive Director) at ceo@cnarea.ca.
The following are the sections that are listed below:
Section 3-4
Section 4-4
Article 5
Section 5-5
Section 6-6
Section 7-10
SECTION 3-4
Current:
A quorum for the board of directors shall be a minimum of five (5) elected directors. Elected directors must be designated appraiser members of the association, must be members in good standing, must be individuals, must have power under law to contract. The elected directors must be an active independent fee appraiser member. Retired designated members may serve on the board of directors if they have been properly elected in accordance with these bylaws. The elected members of the board of directors shall be nominated and elected by the voting members of the association each year at the annual general meeting of the association.
The board of directors of the association shall perform the duties prescribed by these bylaws.
Any director may, at any time, be removed from the board, by a majority vote of membership at the Annual General Meeting or a Special Meeting of the membership.
Proposed:
A quorum for the board of directors shall be a minimum of five (5) elected directors. Elected directors must be designated appraiser members of the association, must be members in good standing, must be individuals, must have power under law to contract. The elected directors must be an active independent fee appraiser member. Retired designated members may serve on the board of directors if they have been properly elected in accordance with these bylaws. The elected members of the board of directors shall be nominated and elected by the voting members of the association each year at the annual general meeting of the association.
To be eligible to run for the Board of Directors a nominee must be present at the Annual General Meeting (AGM) either in person or in attendance virtually.
The board of directors of the association shall perform the duties prescribed by these bylaws.
Any director may, at any time, be removed from the board, by a majority vote of membership at the Annual General Meeting or a Special Meeting of the membership.
SECTION 4-4
Current:
When performing appraisal services, all members shall comply with the current Uniform Standards of Professional Appraisal practice (USPAP) as promulgated by the Appraisal Foundation of the United States of America.
Proposed:
When performing appraisal services, all members shall comply with the current Uniform Standards of Professional Appraisal practice (USPAP) as promulgated by the Appraisal Foundation.
ARTICLE 5 – CONDITIONS OF MEMBERSHIP: DEFINITION OF MEMBER IN GOOD STANDING
Current:
“Member in good standing” means any member who has paid the appropriate membership dues and is current with the respective mandatory continuing education requirements.
Proposed:
“Member in good standing” refers to any member that meets all requirements for membership, education, and continuing education.
SECTION 5-5
Current:
All designated appraiser members, including all Candidate members, of the association must provide proof of current errors and omissions insurance coverage.
Proposed:
All designated appraiser members, including all Candidate members, of the association must provide proof of current errors and omissions insurance coverage from a licensed Canadian Insurance company and Brokerage.
SECTION 6-6
As announced to the membership on February 3, 2022, the Board approved the change to Section 6-6 (Non-Complex Commercial Properties)
Previously Section 6-6 of CNAREA By-Law stated:
DAR members are permitted to perform appraisal and consultation assignments of residential properties consisting of no more than four (4) housing units.
DAR members are also permitted to perform appraisal and consultation assignments of non-complex commercial properties in accordance with CNAREA policies and procedures and acting in compliance with the competency rule as stated in the current Uniform Standards of Professional Appraisal Practice (USPAP).
As stated in previous By-Laws and current Policies and Procedures,
Non-complex is defined as a property that does not have any atypical form of ownership or where the property value is not affected by any atypical market conditions. Characteristics similar to the following may suggest that an appraisal assignment is non-complex (this list is not intended to be all inclusive):
- ownership rights are typical
- there is no unusual zoning, deed restrictions, easements, encroachments, and other similar factors
- there are no abnormal changes in the neighbourhood characteristics which might suggest that the highest and best use is not the present use
- there are no actual or suspected environmental hazards
- the present market is relatively stable
The long-standing definition of “Non-Complex Commercial properties” fails to clarify the types of properties that have a commercial component, and what properties of this nature residential appraisers are competent (or able to the acquire the necessary competence) to complete. As mixed-use properties are becoming more popular in markets across the country it is necessary that we define and clarify what it is DARs can do. As such the Board of Directors has approved to change the wording in Section 6-6 of the By-Laws to specify Mixed-Use Properties.
The revised By-Law – Section 6-6 states the following:
DAR members are permitted to perform appraisal and consultation assignments of residential properties consisting of no more than four (4) housing units.
DAR members are also permitted to perform appraisal and consultation assignments of “Mixed-use Properties” in accordance with CNAREA policies and procedures and acting in compliance with the competency rule as stated in the current Uniform Standards of Professional Appraisal Practice (USPAP).
Included in CNAREA Policies and Procedures:
Mixed-Use properties are defined as those properties that meet all the following criteria:
- The property must be primarily residential in nature.
- The owner of the property must also be the owner and the operator of the business.
- The property is occupied by the owner as a principal residence.
- The structure has not been modified in a manner that has an adverse impact on its marketability as a residential property.
According to Section 10-1 of the CNAREA By-Laws the Board of Directors may amend the By-Laws and the change “shall be effective from the date of the resolution of directors until the next meeting of members where it may be confirmed, rejected or amended by the members by ordinary resolution”. Although effective immediately the amendment to Section 6-6 will presented to members for ratification at the next Annual General Meeting September 13th, 2022.
NEW: SECTION 7 – 10 TO ARTICLE 7 – COMPLAINTS AGAINST MEMBERS, REPRIMAND, SUSPENSION, AND EXPULSION
Proposed:
In every step of the disciplinary process all dialogue and communication between the member and the association must be recorded either by email, audio, video, or another format, as determined by CNAREA’s authorized personnel, committees, and other bodies in the disciplinary process, that is time stamped and will be stored for retrieval. Refusal to cooperate with these bodies in the disciplinary process is a breach of the CNAREA Code of Ethics.
Should you have any questions please do not hesitate to contact Rob MacDonald at 888.399.3366 Ext 2 or Kevin Lonsdale at 888.399.3366 Ext 3.