Expropriation appraisal review.

ABSTRACT

This article discusses appraisal review in general and as it relates to expropriation or condemnation appraisals. Scope of work obligates an appraiser to fashion a solution and plan of action consistent with the intended use of the appraisal and to produce credible results, This flexibility makes appraisal format problem specific, and more narrowly defines the review appraiser's task. However, in the area of expropriation, there are statutory requirements that form an integral part of the appraisal development process, and these must be considered in the review of an expropriation-related appraisal. Like the initial appraiser, the expropriation appraisal reviewer is obligated to prepare a scope of work as an integral part of the review process.

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Appraisal review is an important auditing and quality control function. Appraisal review procedures vary with the nature of the assignment, the requirements of the client, and the complexity of the issues surrounding the property appraised. Appraisal review in the area of expropriation or condemnation presents unique challenges due to the legislative requirements surrounding valuation and the potential for divergent opinions of value.

Expropriation is a specialized field, where both the initial appraiser whose appraisal is under review and the review appraiser have a professional obligation to understand the regulatory and statutory requirements that may apply within the specific jurisdiction. Expropriation can be defined as

 
   the right of an authorized agency to take an interest in property 
   in return for compensation. Usually it is found in the right of 
   government to lake private property for public use, without the 
   consent of the owner, subject to reimbursement. In the United 
   Slates, this right is known as condemnation. (1) 

Appraisal review requirements under the Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP) (2) apply to members of the Appraisal Institute of Canada, a self-regulating body. Although CUSPAP is not enshrined in federal legislation, it is the de facto standard in Canada.