From time to time, the question arises, am I covered under REIA’s errors and omissions policy for performing an appraisal for a bank or other lending institution for lending purposes? Does it matter if I have charged a fee for this service?

To answer that question, one must refer to the errors and omissions insurance policy issued by Trisura Guarantee, which provides coverage for the members of the five sponsoring provincial associations.

The policy states that coverage is provided for insured members in the rendering or failure to render Professional Services for others.

It defines Professional Services in part as follows: Professional Services means the performance of services customary to a Licensed Real Estate Agent including Real Estate Appraisal Services, however Real Estate Appraisal Services does not include;

• An opinion provided for the purposes of financing, whether secured or unsecured or, 
• An opinion provided by anyone with an Appraisal Institute of Canada or Canadian National Association of Real Estate Appraisers designation or, 
• An opinion provided, other than for marketing purposes, in exchange for a fee or other form of remuneration 

In the final analysis, REALTORS® are limited by this coverage to provide only opinions of value for the purposes of establishing a listing price for properties they are marketing.

For more information about the REIA program, please visit

Real Estate Insurance Alliance

To view your insurance policy with Trisura 'Click Here'