New Appraisal Clause AIC
New Appraisal Clause # 17 & #18 added to appraisals. Appraisal Institute of Canada (AIC) in January 2018 requires appraisers to add these two clauses to reports or their E & O insurance will not cover them. All B-Lenders & Private Lenders can no longer rely on the report unless B-20 legislation has been applied to lending.
How Does The New AIC Clause Affect Private & B-Lenders
Since B-Lending & Private Lenders do not rely on B-20 legislation they no longer can rely on a transmittal letter from the appraiser. This puts a greater emphasis on the lender to do a through underwriting of the file.