Standards of Conduct for all Real Estate Appraisal Professionals

RECA developed the Industry Professional Standards of Conduct to assist consumers with understanding the conduct expected of industry professionals.

The Standards of Conduct are plain-language summaries of Part 2 of the Real Estate Act Rules, Industry Standards of Practice. Should any discrepancy occur between these Standards of Conduct and the Real Estate Act Rules, the Rules take precedence.


Sections 76-80: Real Estate Appraisers




Real estate appraiser responsibilities and prohibitions

Real estate appraisers must be active members in good standing of one of the three appraisal associations in Alberta: the Appraisal Institute of Canada, the Alberta Assessors’ Association, or the Canadian National Association of Real Estate Appraisers.
Real estate appraisers must:

  • use the appraisal standard their association follows
  • use appropriate comparables to the subject property
  • maintain a record of the process they used to find comparables and any relevant comparables they did not use in the appraisal report
  • ensure their work is verifiable through data
  • not ignore comparables that are close to the subject property

Appraisers must have professional liability insurance coverage with a minimum limit of $1 million.
Appraisers must perform appraisals impartially and objectively. They cannot accept any appraisal assignment if payment for the assignment is dependent on the resulting appraised value.
Appraisers cannot accept appraisal assignments if:

  • the assignment is outside their designation and/or qualifications
  • they believe the appraisal will be used for different purposes than those indicated in the assignment (e.g. assignment says the appraisal is for a mortgage application, but it is actually for a divorcing spouse who is documenting assets)
  • they have a conflict of interest with the assignment (e.g. they are appraising their own property)
  • the client asks the appraiser to prepare a report for fraudulent or unlawful purposes, or tries to influence the appraiser’s report

Additional Resources
Sections 77, 78, 79 of the Real Estate Act Rules
Information Bulletin: Responsibilities – Real Estate Appraisers
Information Bulletin: Prohibitions – Real Estate Appraisers
Information Bulletin: Prohibition – Discourage Legal Advice
Information Bulletin: Prohibition – Fraudulent Unlawful Activity
Consumer Information: Protecting Your Information
Information Bulletin: Protection of Client Information
Personal Information and Privacy Act
Personal Information Protection and Electronic Documents Act
Information Bulletin: Referrals – Industry Member Requirements
Information Bulletin: Recommending Service Providers
Information Bulletin: Employees
Information Bulletin: Advertising – Licensed Name


Appraisal report requirements

Every appraisal report must have:

  • the name of the client or intended user, the location and characteristics of the property, any land use issues (e.g. zoning issues), the existing use of the property (residence, rental property, commercial, etc.) and detail about the property’s best use
  • the appraiser’s name, signature, and licence class
  • the appraisal standard they follow
  • the date of the appraisal opinion, and identify whether it’s current, historical, future, or an update
  • the purpose of the report (e.g. for a mortgage, for tax purposes, for bankruptcy proceedings) and currency of the report (i.e. is it current, past, or prospective)
  • any assumptions they make about a property, or any property conditions that limit the appraisal (e.g. access to certain areas was unavailable)
  • all reasons for coming to a certain conclusion
  • a final value estimate

If a candidate appraiser prepared the report, an authorized appraiser must supervise their work and sign the finished appraisal report.

Additional Resources
Section 80 of the Real Estate Act Rules
Consumer Information: What to Expect from an Appraisal