DISCLAIMER: The opinions set forth herein reflect the viewpoint of the Appraisal Institute and Appraisal

Institute of Canada at the time of publication but do not necessarily reflect the viewpoint of each individual
member. While a great deal of care has been taken to provide accurate and current information, neither the
Appraisal Institute, the Appraisal Institute of Canada, the UBC Real Estate Division, nor its editors and staff
assume responsibility for the accuracy of the data contained herein. Further, the general principles and
conclusions presented in this text are subject to local, provincial, and federal laws and regulations, court cases,
and any revisions of the same. This publication is sold for educational purposes with the understanding that the
publisher is not engaged in rendering legal, accounting, or other professional advice.

© Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved. No part
of this book may be reproduced in any form without written permission from the Appraisal Institute of Canada.
Published by the UBC Real Estate Division. Printed in Vancouver, Canada.
 CHAPTER 10

LAND AND SITE ANALYSIS

—ȱ Š™™›Š’œŽ›ȱ –Š¢ȱ ž—Ž›Š”Žȱ Š™™›Š’œŠ•ȱ Šœœ’—–Ž—œȱ ˜ȱ ŽŸŽ•˜™ȱ Š—ȱ ˜™’—’˜—ȱ ˜ȱ
‘Žȱ ŸŠ•žŽȱ ˜ȱ •Š—ȱ ˜—•¢ȱ ˜›ȱ ˜ȱ ŸŠ•žŽȱ ‹˜‘ȱ •Š—ȱ Š—ȱ ’–™›˜ŸŽ–Ž—œǯȱ —ȱ Ž’‘Ž›ȱ ŒŠœŽǰȱ ‘Žȱ
Š™™›Š’œŽ›ȱ –žœȱ ™›˜Ÿ’Žȱ Šȱ ŽŠ’•Žȱ ŽœŒ›’™’˜—ȱ Š—ȱ Š—Š•¢œ’œȱ ˜ȱ ‘Žȱ •Š—ǯȱ Š—ȱ ŒŠ—ȱ ‹Žȱ
›Š ȱ ˜›ȱ ’–™›˜ŸŽDzȱ ›Š ȱ •Š—ȱ ŒŠ—ȱ ‹Žȱ ž—ŽŸŽ•˜™Žȱ ˜›ȱ ™žȱ ˜ȱ Š—ȱ Š›’Œž•ž›Š•ȱ žœŽǯȱ Š—ȱ
–Š¢ȱ ‹Žȱ •˜ŒŠŽȱ ’—ȱ ›ž›Š•ǰȱ œž‹ž›‹Š—ǰȱ ˜›ȱ ž›‹Š—ȱ Š›ŽŠœȱ Š—ȱ –Š¢ȱ ‘ŠŸŽȱ ‘Žȱ ™˜Ž—’Š•ȱ ˜ȱ ‹Žȱ
ŽŸŽ•˜™Žȱ˜›ȱ›Žœ’Ž—’Š•ǰȱŒ˜––Ž›Œ’Š•ǰȱ’—žœ›’Š•ǰȱŠ›’Œž•ž›Š•ǰȱ˜›ȱœ™ŽŒ’Š•Ȭ™ž›™˜œŽȱžœŽǯ
‘’œȱ Œ‘Š™Ž›ȱ ˜ŒžœŽœȱ ˜—ȱ ‘Žȱ ŽœŒ›’™’˜—ȱ Š—ȱ Š—Š•¢œ’œȱ ˜ȱ ‘Žȱ •Š—ȱ Œ˜–™˜—Ž—ȱ ˜ȱ
›ŽŠ•ȱ ™›˜™Ž›¢ǯȱ ’—ŒŽȱ Š™™›Š’œŽ›œȱ ¢™’ŒŠ••¢ȱ ŽŠ•ȱ  ’‘ȱ •Š—ȱ ‘Šȱ ‘Šœȱ ‹ŽŽ—ȱ ’–™›˜ŸŽȱ ˜ȱ
œ˜–Žȱ Ž›ŽŽǰȱ ‘Žȱ Ž›–ȱ œ’Žȱ ’œȱ ˜Ž—ȱ –˜›Žȱ ™›ŽŒ’œŽȱ ‘Š—ȱ •Š—Dzȱ ‘Ž›Ž˜›Žǰȱ ‘Žȱ Ž›–ȱ œ’Žȱ
’œȱ žœŽȱ ™›Ž˜–’—Š—•¢ȱ ’—ȱ ‘’œȱ Œ‘Š™Ž›ǯȱ ‘Žȱ ’—˜›–Š’˜—ȱ —ŽŽŽȱ ˜ȱ Œ˜–™•ŽŽȱ Šȱ ž••ȱ
œ’Žȱ ŽœŒ›’™’˜—ȱ Š—ȱ Š—Š•¢œ’œȱ ’œȱ —˜Žȱ Š—ȱ Ž¡™•Š’—Žȱ Š—ȱ œ˜ž›ŒŽœȱ ˜›ȱ ˜‹Š’—’—ȱ ‘’œȱ
’—˜›–Š’˜—ȱŠ›Žȱ™›ŽœŽ—Žǯȱ•‘˜ž‘ȱ‘’œȱ’œŒžœœ’˜—ȱ›Ž•ŠŽœȱ™›’–Š›’•¢ȱ˜ȱ‘Žȱ™›˜™Ž›¢ȱ
‹Ž’—ȱ Š™™›Š’œŽǰȱ ‘Žȱ œŠ–Žȱ ¢™Žȱ ˜ȱ ŠŠȱ ’œȱ Œ˜••ŽŒŽȱ Š—ȱ Ž¡Š–’—Žȱ ’—ȱ Š—Š•¢£’—ȱ ‘Žȱ
Œ˜–™Š›Š‹•Žȱ™›˜™Ž›’ŽœȱžœŽȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ǯ
ȱ ™Š›ŒŽ•ȱ ˜ȱ •Š—ȱ ŒŠ—ȱ ‘ŠŸŽȱ ŸŠ›’˜žœȱ œ’Žȱ
’–™›˜ŸŽ–Ž—œȱ ‘Šȱ Ž—Š‹•Žȱ ‘Žȱ ŸŠŒŠ—ȱ ™Š›ŒŽ•ȱ ˜ȱ site description
A comprehensive listing of site data,
œž™™˜›ȱŠȱœ™ŽŒ’ęŒȱ™ž›™˜œŽǯȱȱœ’ŽȱŒŠ—ȱ‘ŠŸŽȱ‹˜‘ȱ
including a legal description, other title and
˜—Ȭœ’Žȱ Š—ȱ ˜ěȬœ’Žȱ ’–™›˜ŸŽ–Ž—œȱ ‘Šȱ –Š”Žȱ ’ȱ
record data, and information on the site's
œž’Š‹•Žȱ ˜›ȱ ’œȱ ’—Ž—Žȱ žœŽȱ ˜›ȱ ŽŸŽ•˜™–Ž—ǯȱ physical characteristics.
ěȬœ’Žȱ’–™›˜ŸŽ–Ž—œȱ–Š¢ȱ’—Œ•žŽȱž’•’¢ȱ•’—Žœǰȱ
ŠŒŒŽœœȱ˜ȱ›˜ŠœǰȱŠ—ȱ ŠŽ›ǰȱ›Š’—ŠŽǰȱŠ—ȱœŽ Ž›ȱ
œ¢œŽ–œǯȱ —Ȭœ’Žȱ ’–™›˜ŸŽ–Ž—œȱ –Š¢ȱ ’—Œ•žŽȱ •Š—œŒŠ™’—ǰȱ œ’Žȱ ›Š’—ǰȱ ŠŒŒŽœœȱ ›’ŸŽȬ
 Š¢œǰȱ›Š’—ŠŽȱ’–™›˜ŸŽ–Ž—œǰȱŠŒŒŽœœ˜›¢ȱ‹ž’•’—œǰȱŠ—ȱœž™™˜›ȱŠŒ’•’’Žœǯ
—ȱ ŸŠ•ž’—ȱ Š—¢ȱ ¢™Žȱ ˜ȱ ™›˜™Ž›¢ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ ŽœŒ›’‹Žȱ Š—ȱ Š—Š•¢£Žȱ ‘Žȱ
œ’Žǯȱ’ŽȱŽœŒ›’™’˜—ȱŒ˜—œ’œœȱ˜ȱŒ˜–™›Ž‘Ž—œ’ŸŽȱŠŒžŠ•ȱŠŠǰȱ’—˜›–Š’˜—ȱ˜—ȱ•Š—ȱžœŽȱ
›Žœ›’Œ’˜—œǰȱŠȱ•ŽŠ•ȱŽœŒ›’™’˜—ǰȱ˜‘Ž›ȱ’•ŽȱŠ—ȱ›ŽŒ˜›ȱŠŠǰȱŠ—ȱ’—˜›–Š’˜—ȱ˜—ȱ™Ž›’Ȭ
—Ž—ȱ™‘¢œ’ŒŠ•ȱŒ‘Š›ŠŒŽ›’œ’Œœǯȱ’ŽȱŠ—Š•¢œ’œȱ˜Žœȱž›‘Ž›ǯȱȱ’œȱŠȱŒŠ›Žž•ȱœž¢ȱ˜ȱŠŒžŠ•ȱ
ŠŠȱ’—ȱ›Ž•Š’˜—ȱ˜ȱ‘Žȱ–Š›”ŽȱŠ›ŽŠȱŒ‘Š›ŠŒŽ›’œ’Œœȱ‘ŠȱŒ›ŽŠŽǰȱŽ—‘Š—ŒŽǰȱ˜›ȱŽ›ŠŒȱ›˜–ȱ
‘Žȱ ž’•’¢ȱ Š—ȱ –Š›”ŽŠ‹’•’¢ȱ ˜ȱ œ™ŽŒ’ęŒȱ •Š—ȱ ˜›ȱ Šȱ ’ŸŽ—ȱ œ’Žȱ Šœȱ Œ˜–™Š›Žȱ  ’‘ȱ ˜‘Ž›ȱ
œ’Žœȱ ’‘ȱ ‘’Œ‘ȱ’ȱŒ˜–™ŽŽœǯ

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 10.2 The Appraisal of Real Estate – Third Canadian Edition

—Žȱ ™›’–Š›¢ȱ ˜‹“ŽŒ’ŸŽȱ ˜ȱ œ’Žȱ Š—Š•¢œ’œȱ

raw land
›Žšž’›Žœȱ ‘Žȱ Š™™›Š’œŽ›ȱ ˜ȱ Š‘Ž›ȱ ŠŠȱ ‘Šȱ  ’••ȱ
Land on which no improvements have
been made; land in its natural state before
’—’ŒŠŽȱ ‘Žȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ ˜ȱ ‘Žȱ œ’Žȱ Šœȱ
grading, construction, subdivision, or the ‘˜ž‘ȱŸŠŒŠ—ȱœ˜ȱ‘Šȱ‘ŽȱŠ™™›Š’œŽ›ȱŒŠ—ȱŽœ’–ŠŽȱ
installation of utilities. ‘Žȱ•Š—ȱŸŠ•žŽȱ˜›ȱŠȱœ™ŽŒ’ęŒȱžœŽǯȱ‘Ž‘Ž›ȱŠȱœ’Žȱ
site ˜›ȱ›Š ȱ•Š—ȱ’œȱ‹Ž’—ȱŸŠ•žŽǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱ
Land that is improved so that it is ready to ŽŽ›–’—ŽȱŠ—ȱŽŸŠ•žŠŽȱ’œȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽǯȱ
be used for a specific purpose. ‘Ž—ȱ ‘Žȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ ˜ȱ •Š—ȱ ’œȱ ˜›ȱ
Š›’Œž•ž›Žǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ žœžŠ••¢ȱ Š—Š•¢£Žœȱ Š—ȱ
ŸŠ•žŽœȱ‘Žȱ•Š—ȱ‹¢ȱŠ™™•¢’—ȱ‘Žȱ’›ŽŒȱŒ˜–™Š›’Ȭ
œ˜—ȱ Š™™›˜ŠŒ‘ǯȱ ȱ ‘Žȱ •Š—ȱ ’œȱ ˜ȱ ‹Žȱ ŽŸŽ•˜™Žȱ ˜›ȱ ž›‹Š—ȱ žœŽǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ –Š¢ȱ žœŽȱ Šȱ
–˜›Žȱ œ˜™‘’œ’ŒŠŽȱ ŽŒ‘—’šžŽȱ œžŒ‘ȱ Šœȱ œž‹’Ÿ’œ’˜—ȱ ŽŸŽ•˜™–Ž—ȱ Š—Š•¢œ’œǯȱ ‘Š™Ž›ȱ ŗŘȱ
’œŒžœœŽœȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱ’—ȱŽŠ’•ǯ

LEGAL DESCRIPTIONS OF LAND

Š—ȱ ‹˜ž—Š›’Žœȱ ’쎛Ž—’ŠŽȱ œŽ™Š›ŠŽȱ ˜ —Ž›œ‘’™œǰȱ Š—ȱ ‘Žȱ •Š—ȱ  ’‘’—ȱ ˜—Žȱ œŽȱ ˜ȱ
‹˜ž—Š›’Žœȱ –Š¢ȱ ‹Žȱ ›ŽŽ››Žȱ ˜ȱ Šœȱ Šȱ ™Š›ŒŽ•ǰȱ •˜ǰȱ ™•˜ǰȱ ˜›ȱ ›ŠŒǯȱ—ȱ Š™™›Š’œŽ›ȱ –Š¢ȱ Š™™•¢ȱ
‘ŽœŽȱ Ž›–œȱ ˜ȱ Š••ȱ ¢™Žœȱ ˜ȱ ’–™›˜ŸŽȱ Š—ȱ ž—’–™›˜ŸŽȱ •Š—ȱ Š—ȱ –Š›”Žȱ ™Š›’Œ’™Š—œȱ
˜Ž—ȱžœŽȱ‘Ž–ȱ’—Ž›Œ‘Š—ŽŠ‹•¢ǯȱ
˜ ŽŸŽ›ǰȱ‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱžœŽȱ‘ŽȱŽ›–œȱŒ˜—œ’œȬ
Ž—•¢ȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ȱ›Ž™˜›ȱ˜ȱŠŸ˜’ȱŒ˜—žœ’—ȱ‘ŽȱŒ•’Ž—ǯ
ȱ ™Š›ŒŽ•ȱ ˜ȱ •Š—ȱ Ž—Ž›Š••¢ȱ ›ŽŽ›œȱ ˜ȱ Šȱ ™’ŽŒŽȱ ˜ȱ •Š—ȱ ‘Šȱ ŒŠ—ȱ ‹Žȱ ’Ž—’ꮍȱ ‹¢ȱ Šȱ
Œ˜––˜—ȱ ŽœŒ›’™’˜—ȱ Š—ȱ ’œȱ ‘Ž•ȱ ’—ȱ ˜—Žȱ ˜ —Ž›œ‘’™ǯȱ ŸŽ›¢ȱ ™Š›ŒŽ•ȱ ˜ȱ ›ŽŠ•ȱ ŽœŠŽȱ ’œȱ
ž—’šžŽǯȱ˜ȱ’Ž—’¢ȱ’—’Ÿ’žŠ•ȱ™Š›ŒŽ•œǰȱŠ™™›Š’œŽ›œȱ›Ž•¢ȱ˜—ȱ•ŽŠ•ȱŽœŒ›’™’˜—œǰȱœž›ŸŽ¢œǰȱ
˜›ȱ ˜‘Ž›ȱ ŽœŒ›’™’ŸŽȱ ’—˜›–Š’˜—ȱ ¢™’ŒŠ••¢ȱ ™›˜Ÿ’Žȱ ‹¢ȱ ‘Žȱ Œ•’Ž—ȱ ˜›ȱ ˜ž—ȱ ’—ȱ ™ž‹•’Œȱ
›ŽŒ˜›œǯȱ ȱ •ŽŠ•ȱ ŽœŒ›’™’˜—ȱ ’Ž—’ęŽœȱ Šȱ ™›˜™Ž›¢ȱ ’—ȱ œžŒ‘ȱ Šȱ  Š¢ȱ ‘Šȱ ’ȱ ŒŠ——˜ȱ ‹Žȱ
Œ˜—žœŽȱ ’‘ȱŠ—¢ȱ˜‘Ž›ȱ™›˜™Ž›¢ǯȱ—ȱŠ™™›Š’œŽ›ȱžœžŠ••¢ȱ’—Œ•žŽœȱ˜›ȱ›ŽŽ›Ž—ŒŽœȱŠȱ•ŽŠ•ȱ
ŽœŒ›’™’˜—ȱ’—ȱŠ—ȱŠ™™›Š’œŠ•ȱ›Ž™˜›ǰȱŠ•‘˜ž‘ȱ’ȱ’œȱ—˜ȱ›Žšž’›Žǯ
—ȱŠ—ŠŠǰȱ‘›ŽŽȱ–Ž‘˜œȱŠ›ŽȱŒ˜––˜—•¢ȱžœŽȱ’—ȱ•ŽŠ•ȱŽœŒ›’™’˜—œȱ˜ȱ›ŽŠ•ȱ™›˜™Ž›¢DZ
yȱ ŽŽœȱŠ—ȱ‹˜ž—œȱœ¢œŽ–
legal description yȱ ŽŒŠ—ž•Š›ȱœž›ŸŽ¢ȱœ¢œŽ–
A description of land that identifies the real yȱ ˜ȱŠ—ȱ‹•˜Œ”ȱœ¢œŽ–
estate according to a system established —ȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ ‹Žȱ Š–’•’Š›ȱ  ’‘ȱ ‘ŽœŽȱ
or approved by law; an exact description ˜›–œȱ˜ȱ•ŽŠ•ȱŽœŒ›’™’˜—ȱŠ—ȱ”—˜ ȱ ‘’Œ‘ȱ˜›–ȱ
that enables the real estate to be located
˜›ȱ ˜›–œȱ Š›Žȱ Œ˜––˜—ȱ ’—ȱ ‘Žȱ Š›ŽŠȱ  ‘Ž›Žȱ ‘Žȱ
and identified.
Š™™›Š’œŠ•ȱ’œȱ‹Ž’—ȱŒ˜—žŒŽǯ

Metes and Bounds

‘Žȱ ˜•Žœȱ ”—˜ —ȱ –Ž‘˜ȱ ˜ȱ œž›ŸŽ¢’—ȱ •Š—ȱ ’œȱ ‘Žȱ –ŽŽœȱ Š—ȱ ‹˜ž—œȱ œ¢œŽ–ǰȱ ’—ȱ
 ‘’Œ‘ȱ •Š—ȱ ’œȱ –ŽŠœž›Žȱ Š—ȱ ’Ž—’ꮍȱ ‹¢ȱ ŽœŒ›’‹’—ȱ ’œȱ ‹˜ž—Š›’Žœǯȱ ȱ –ŽŽœȱ Š—ȱ
‹˜ž—œȱ ŽœŒ›’™’˜—ȱ ˜ȱ Šȱ ™Š›ŒŽ•ȱ ˜ȱ ›ŽŠ•ȱ ™›˜™Ž›¢ȱ ŽœŒ›’‹Žœȱ ‘Žȱ ™›˜™Ž›¢ȇœȱ ‹˜ž—Š›’Žœȱ
’—ȱ Ž›–œȱ ˜ȱ ™›ŽŒ’œŽȱ ›ŽŽ›Ž—ŒŽȱ ™˜’—œǯȱ ˜ȱ ˜••˜ ȱ Šȱ –ŽŽœȱ Š—ȱ ‹˜ž—œȱ ŽœŒ›’™’˜—ǰȱ ˜—Žȱ
œŠ›œȱ Šȱ ‘Žȱ ™˜’—ȱ ˜ȱ ‹Ž’——’—ȱ ǻǼǰȱ Šȱ ™›’–Š›¢ȱ œž›ŸŽ¢ȱ ›ŽŽ›Ž—ŒŽȱ ™˜’—ȱ ‘Šȱ ’œȱ ’Žȱ

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 Chapter 10 – Land and Site Analysis 10.3

˜ȱŠȱ‹Ž—Œ‘–Š›”ȱ˜›ȱŠ“˜’—’—ȱœž›ŸŽ¢œǰȱŠ—ȱ–˜ŸŽœȱ
In Canada, the three principal methods
Š•˜—ȱ™ŠœȱœŽŸŽ›Š•ȱ’—Ž›–Ž’ŠŽȱ›ŽŽ›Ž—ŒŽȱ™˜’—œȱ
used to describe real property are the
‹Ž˜›Žȱ ꗊ••¢ȱ ›Žž›—’—ȱ ˜ȱ ‘Žȱ ǯȱ ‘Žȱ ›Žž›—ȱ metes and bounds, rectangular survey, and
˜ȱ ‘Žȱ ȱ ’œȱ ŒŠ••Žȱ Œ•˜œ’—ȱ Š—ȱ ’œȱ —ŽŒŽœœŠ›¢ȱ ˜ȱ lot and block systems.
Ž—œž›Žȱ‘Žȱœž›ŸŽ¢ȇœȱŠŒŒž›ŠŒ¢ǯ
ž›ŸŽ¢˜›œȱ ’—ȱ ‘Žȱ ꎕȱ ’—Œ›ŽŠœ’—•¢ȱ ›Ž•¢ȱ
˜—ȱ –˜Ž›—ȱ Ȉ˜Š•ȱ œŠ’˜—œȈȱ ˜ȱ Œ˜••ŽŒȱ ŠŠȱ ’—ȱ metes and bounds system
’’Š•ȱ ˜›–ǯȱ ‘Žȱ Š–’•’Š›ȱ œž›ŸŽ¢˜›ȇœȱ –ŽŠœž›’—ȱ A system for the legal description of land
’—œ›ž–Ž—ȱ –˜ž—Žȱ ˜—ȱ Šȱ ›’™˜ȱ žœŽœȱ ’—›Š›Žȱ that refers to the parcel's boundaries, which
ŽŒ‘—˜•˜¢ȱŠ—ȱ˜Š¢ȱ’œȱŠž–Ž—Žȱ‹¢ȱ™˜›Š‹•Žȱ are formed by the point of beginning (POB)
and all intermediate points (bounds) and
Œ˜–™žŽ›ȱ ŽŒ‘—˜•˜¢ǯȱ ‘Žȱ ŠŠȱ ’œȱ ˜ —•˜ŠŽȱ
the courses or angular direction of each
’—˜ȱ ‘Žȱ œž›ŸŽ¢˜›ȇœȱ ˜ĜŒŽȱ Œ˜–™žŽ›ȱ ˜›ȱ ™•˜Ĵ’—ȱ
point (metes).
‘Žȱ ™›˜™Ž›¢ȱ ‹˜ž—Š›’Žœȱ Š—ȱ Œ˜–™ž’—ȱ ‘Žȱ
•Š—ȱ Š›ŽŠǯȱ ˜˜›’—ŠŽȱ Ž˜–Ž›¢ȱ œ˜ Š›Žȱ Š—ȱ
•˜‹Š•ȱ ™˜œ’’˜—’—ȱ œ¢œŽ–ȱ ǻ Ǽȱ ŽŒ‘—˜•˜¢ȱ Š••˜ ȱ ˜›ȱ –˜›Žȱ ŠŒŒž›ŠŽȱ ŽŽ›–’—ŠȬ
’˜—œȱ ˜ȱ ’›ŽŒ’˜—œǰȱ ’œŠ—ŒŽœǰȱ Š—ȱ Š›ŽŠœǯȱ ȱ ŽŒ‘—˜•˜¢ȱ ’œȱ ˜—•¢ȱ •’–’Žȱ ‹¢ȱ ™‘¢œ’ŒŠ•ȱ
˜‹œ›žŒ’˜—œȱ ‘Šȱ ™›˜‘’‹’ȱ ›ŽŒŽ’Ÿ’—ȱ œŠŽ••’Žȱ ›Š—œ–’œœ’˜—œǰȱ Š—ȱ ’œȱ žœŽȱ ’—ȱ œž›ŸŽ¢’—ȱ
 ’••ȱ™›˜‹Š‹•¢ȱ’—Œ›ŽŠœŽǯ
‘Žȱ –ŽŽœȱ Š—ȱ ‹˜ž—œȱ œ¢œŽ–ȱ ’œȱ Š—ȱ ˜•Ž›ȱ –Ž‘˜ȱ ˜ȱ ŽœŒ›’‹’—ȱ ›ŽŠ•ȱ ™›˜™Ž›¢ǰȱ
Š—ȱ ’œȱ ˜ž—ȱ –˜œȱ ˜Ž—ȱ ’—ȱ ™›˜Ÿ’—ŒŽœȱ  ’‘ȱ ‘Žȱ ˜•Žœȱ •Š—ȱ ›Ž’œ›¢ȱ œ¢œŽ–œǰȱ Žǯǯǰȱ ‘Žȱ
Š›’’–Žȱ ™›˜Ÿ’—ŒŽœǯȱ ȱ ’œȱ žœŽȱ ŠŒ›˜œœȱ ‘Žȱ Œ˜ž—›¢ȱ Šœȱ Šȱ Œ˜›˜••Š›¢ȱ ˜ȱ ‘Žȱ ›ŽŒŠ—ž•Š›ȱ
œž›ŸŽ¢ȱœ¢œŽ–ǰȱŽœ™ŽŒ’Š••¢ȱ’—ȱŽœŒ›’‹’—ȱž—žœžŠ•ȱ˜›ȱ˜Ȭœ‘Š™Žȱ™Š›ŒŽ•œȱ˜ȱ•Š—ǯȱ

Rectangular Survey System

‘Žȱ ›ŽŒŠ—ž•Š›ȱ œž›ŸŽ¢ȱ œ¢œŽ–ȱ ’œȱ Š•œ˜ȱ
”—˜ —ȱŠœȱ‘Žȱ˜–’—’˜—ȱŠ—ȱž›ŸŽ¢ȱǻǼȱŠ—ȱ
‘ŽȱœŽŒ’˜—ȱŠ—ȱ˜ —œ‘’™ȱœ¢œŽ–ǯȱȱ’œȱŒ˜––˜—•¢ȱ
žœŽȱ ’—ȱ  ŽœŽ›—ȱ Š—ŠŠǰȱ Š—ȱ ˜ȱ Šȱ •ŽœœŽ›ȱ Ž¡Ž—ȱ
’—ȱ—Š›’˜ǯ
‘Žȱ ’—’’Š•ȱ ›ŽŽ›Ž—ŒŽȱ ™˜’—œȱ ˜›ȱ ˜ŸŽ›—Ȭ
–Ž—ȱ œž›ŸŽ¢œȱ  Ž›Žȱ ŽœŠ‹•’œ‘Žȱ ’—ȱ ŗŞŝŗǰȱ œ‘˜›•¢ȱ
ŠŽ›ȱ Š—’˜‹Šȱ Š—ȱ ‘Žȱ ˜›‘ Žœȱ Ž››’˜›’Žœȱ
‹ŽŒŠ–Žȱ ™Š›ȱ ˜ȱ Š—ŠŠǯȱ ›˜–ȱ ŽŠŒ‘ȱ ™˜’—ȱ œ™ŽŒ’Ȭ
ꎍǰȱ ›žŽȱ ŽŠœȬ Žœȱ Š—ȱ —˜›‘Ȭœ˜ž‘ȱ •’—Žœȱ  Ž›Žȱ
›Š —ǯȱ ‘Žȱ —˜›‘Ȭœ˜ž‘ȱ ›ŽŽ›Ž—ŒŽȱ ™˜’—œȱ ˜›ȱ
˜ŸŽ›—–Ž—ȱ œž›ŸŽ¢œȱ  Ž›Žȱ ŽœŠ‹•’œ‘Žȱ ꛜ•¢ȱ Šœȱ
‹Ž’—ȱ  Žœȱ ˜ȱ œ™ŽŒ’ꮍȱ –Ž›’’Š—œǯȱ ǻ‘Žȱ ™›’–Žȱ
–Ž›’’Š—ȱ ˜ȱ şŞȱ Ž›ŽŽœȱ •’Žœȱ Š™™›˜¡’–ŠŽ•¢ȱ ŗŘȱ
–’•Žœȱ  Žœȱ ˜ȱ ’——’™ŽǼǯȱ ŠœȬ Žœȱ ›ŽŽ›Ž—ŒŽȱ
™˜’—œȱŒ˜––Ž—ŒŽȱŠȱ‘ŽȱŚş‘ȱ™Š›Š••Ž•ȱ˜ȱ•Š’žŽǯȱ
›˜–ȱ ŽŠŒ‘ȱ ™˜’—ȱ œ™ŽŒ’ꮍǰȱ ›žŽȱ ŽŠœȬ Žœȱ Š—ȱ
—˜›‘Ȭœ˜ž‘ȱ •’—Žœȱ  Ž›Žȱ ›Š —ǯȱ ‘Žȱ ŽŠœȬ Žœȱ
•’—Žœȱ Š›Žȱ ŒŠ••Žȱ ‹ŠœŽȱ •’—Žœȱ Š—ȱ ‘Žȱ —˜›‘Ȭœ˜ž‘ȱ
•’—Žœȱ Š›Žȱ ŒŠ••Žȱ ™›’—Œ’™Š•ȱ –Ž›’’Š—œǯȱ ŠŒ‘ȱ
rectangular survey system
A land survey system. called the Dominion
Land Survey (DLS), used in western
Canada and to a lesser extent, Ontario; it
divides land into townships approximately
six miles square, each normally containing
36 one-square-mile sections of 640 acres,
except when adjusted for the curvature of
the earth.
base line
In the government survey system of land
description, a line running due east and west
through the initial point of a principal meridian
from which township lines are established.
principal meridian
In land surveying, major north-south
lines established as general reference
points. They converge towards the North
Pole. Therefore, the north edge of every
township is slightly shorter than the south.

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 3 10/4/2010 10:35:45 AM

 10.4 The Appraisal of Real Estate – Third Canadian Edition

™›’—Œ’™Š•ȱ –Ž›’’Š—ȱ ‘Šœȱ Šȱ ž—’šžŽȱ —ž–‹Ž›ȱ Š—ȱ

lot and block system
’œȱ Œ›˜œœŽȱ ‹¢ȱ ’œȱ ˜ —ȱ ‹ŠœŽȱ •’—Žǯȱ œ’—ȱ ‘ŽœŽȱ
A system for the legal description of
land that refers to parcels' lot and block
‹ŠœŽȱ •’—Žœȱ Š—ȱ ™›’—Œ’™Š•ȱ –Ž›’’Š—œǰȱ •Š—ȱ ŒŠ—ȱ ‹Žȱ
numbers, which appear on recorded •˜ŒŠŽȱŠŒŒž›ŠŽ•¢ǯ
plans of subdivided land. These plans are ‘Žȱ •Š—ȱ œž›ŸŽ¢Žȱ ž—Ž›ȱ ‘Žȱ ›ŽŒŠ—ž•Š›ȱ
registered at provincial and territorial land œž›ŸŽ¢ȱ œ¢œŽ–ȱ ’œȱ ’Ÿ’Žȱ ‹¢ȱ —˜›‘Ȭœ˜ž‘ȱ •’—Žœȱ
registry and land titles offices.t œ’¡ȱ –’•Žœȱ Š™Š›ȱ ŒŠ••Žȱ ›Š—Žȱ •’—Žœǰȱ Š—ȱ ‹¢ȱ ŽŠœȬ
 Žœȱ •’—Žœȱ œ’¡ȱ –’•Žœȱ Š™Š›ȱ ŒŠ••Žȱ ˜ —œ‘’™ȱ •’—Žœǯȱ
‘Žȱ œ¢œŽ–ȱ ‘Šœȱ ’œȱ ‹Šœ’œȱ ’—ȱ ‘Žȱ ’–™Ž›’Š•ȱ œ¢œŽ–ȱ
˜ȱ–ŽŠœž›Ž–Ž—DZȱŠœȱ—˜ȱ™›˜Ÿ’—ŒŽȱ‘Šœȱž—Ž›Š”Ž—ȱŠȱŒ˜–™›Ž‘Ž—œ’ŸŽȱ™›˜›Š–ȱ˜ȱ–Ž›’Œȱ
Œ˜—ŸŽ›œ’˜—ǰȱ ’–Ž—œ’˜—œȱ ›Ž–Š’—ȱ ’—ȱ ’–™Ž›’Š•ȱ ž—’•ȱ ›Žœž›ŸŽ¢’—ȱ ˜ŒŒž›œǯȱ ‘Žȱ ›ŽŒŠ—•Žœȱ
Œ›ŽŠŽȱ  ‘Ž›Žȱ ‘ŽœŽȱ •’—Žœȱ ’—Ž›œŽŒȱ Š›Žȱ ŒŠ••Žȱ ˜ —œ‘’™œǯȱ ‘Žȱ œŠ—Š›ȱ ˜ —œ‘’™ȱ ’œȱ
œ’¡ȱ –’•Žœȱ œšžŠ›Žȱ Š—ȱ Œ˜—Š’—œȱ řŜȱ œšžŠ›Žȱ –’•Žœǯȱ ‘Ž—ȱ Š™™•’Žȱ ˜ȱ œž›ŸŽ¢’—ǰȱ ‘Žȱ Ž›–ȱ
˜ —œ‘’™ȱ ‘Šœȱ  ˜ȱ –ŽŠ—’—œDZȱ Šȱ •˜ŒŠ’˜—ȱ ˜—ȱ Šȱ •’—Žȱ —˜›‘ȱ ˜›ȱ œ˜ž‘ȱ ˜ȱ Šȱ ‹ŠœŽȱ •’—Žȱ Š—ȱ
Šȱ œšžŠ›Žȱ ˜ȱ •Š—ȱ ‘Šȱ –ŽŠœž›Žœȱ œ’¡ȱ –’•Žœȱ ‹¢ȱ œ’¡ȱ –’•Žœǯȱ —ȱ —Š›’˜ǰȱ ˜ —œ‘’™œȱ  Ž›Žȱ
˜›’Ž—Žȱ ˜ȱ Ž˜›Š™‘’Œȱ ŽŠž›Žœȱ ’—Œ•ž’—ȱ Š”Žȱ —Š›’˜ǰȱ ‘Žȱ ǯȱ Š ›Ž—ŒŽȱ ’ŸŽ›ǰȱ Š—ȱ
ŽŠ›•¢ȱ –’•’Š›¢ȱ ›˜Šœǯȱ ˜—ŒŽœœ’˜—ȱ •’—Žœȱ Žę—Žȱ ˜ —œ‘’™œȱ Š—ȱ œž‹’Ÿ’œ’˜—œȱ ’—Ÿ˜•ŸŽȱ
•˜ȱ œž›ŸŽ¢œǯȱ ‘Žȱ —Š›’˜ȱ œ¢œŽ–ȱ ’œȱ ›ŽŽ››Žȱ ˜ȱ Šœȱ ‘Žȱ ˜ —œ‘’™ȱ •˜ȱ Š—ȱ Œ˜—ŒŽœœ’˜—ȱ
œ¢œŽ–ǯȱ˜ —œ‘’™ȱŒŠ—ȱŠ•œ˜ȱ›ŽŽ›ȱ˜ȱŠȱ™˜•’’ŒŠ•ȱœž‹’Ÿ’œ’˜—ȱœ’–’•Š›ȱ˜ȱŠȱŒ˜ž—¢ǰȱ›Ž’˜—Š•ȱ
’œ›’Œǰȱ˜›ȱ›ž›Š•ȱ–ž—’Œ’™Š•’¢ǯ
‘Žȱ’—Ž›œŽŒ’˜—ȱ˜ȱŠȱ‹ŠœŽȱ•’—ŽȱŠ—ȱŠȱ™›’—Œ’™Š•ȱ–Ž›’’Š—ȱ’œȱ‘ŽȱœŠ›’—ȱ™˜’—ȱ›˜–ȱ
 ‘’Œ‘ȱ‘Žȱ›Š—Žȱ•’—ŽœȱŠ—ȱ˜ —œ‘’™ȱ•’—ŽœȱŠ›ŽȱŒ˜ž—Žȱ˜ȱ•˜ŒŠŽȱŠȱœ™ŽŒ’ęŒȱ˜ —œ‘’™ȱ’—ȱ
Šȱ•ŽŠ•ȱŽœŒ›’™’˜—ǯȱŠ—ŽœȱŠ›Žȱ—ž–‹Ž›ŽȱŽŠœȱŠ—ȱ Žœȱ›˜–ȱ‘Žȱ™›’—Œ’™Š•ȱ–Ž›’’Š—Dzȱ
˜ —œ‘’™œȱŠ›Žȱ—ž–‹Ž›Žȱ—˜›‘ȱŠ—ȱœ˜ž‘ȱ›˜–ȱ‘Žȱ‹ŠœŽȱ•’—Žǯ
˜ —œ‘’™œȱ Š›Žȱ ’Ÿ’Žȱ ’—˜ȱ řŜȱ œŽŒ’˜—œǰȱ ŽŠŒ‘ȱ ˜ȱ  ‘’Œ‘ȱ ’œȱ ˜—Žȱ –’•Žȱ œšžŠ›Žȱ Š—ȱ
Œ˜—Š’—ȱŜŚŖȱŠŒ›Žœǯȱ˜›ȱŠȱ–˜›Žȱœ™ŽŒ’ęŒȱŽœŒ›’™’˜—ȱ˜ȱŠȱ™Š›ŒŽ•ǰȱŠȱœŽŒ’˜—ȱ–Š¢ȱ‹Žȱ’Ÿ’Žȱ
’—˜ȱšžŠ›Ž›ȱœŽŒ’˜—œȱŠ—ȱ›ŠŒ’˜—œȱ˜ȱšžŠ›Ž›ȱœŽŒ’˜—œǯȱ˜ȱŠŒŒ˜––˜ŠŽȱ‘Žȱœ™‘Ž›’ŒŠ•ȱ
œ‘Š™Žȱ˜ȱ‘ŽȱŽŠ›‘ǰȱŠ’’˜—Š•ȱ•’—ŽœȱŒŠ••Žȱž’Žȱ–Ž›’’Š—œȱŠ›Žȱ›Š —ȱŽŸŽ›¢ȱŘŚȱ–’•Žœȱ
ŽŠœȱ Š—ȱ  Žœȱ ˜ȱ ‘Žȱ ™›’—Œ’™Š•ȱ –Ž›’’Š—ǯȱ ‘Ž›ȱ •’—Žœǰȱ ŒŠ••Žȱ œŠ—Š›ȱ ™Š›Š••Ž•œǰȱ Š›Žȱ
›Š —ȱŽŸŽ›¢ȱŘŚȱ–’•Žœȱ—˜›‘ȱŠ—ȱœ˜ž‘ȱ˜ȱ‘Žȱ‹ŠœŽȱ•’—Žǯȱ‘ŽœŽȱŒ˜››ŽŒ’˜—ȱ•’—ŽœȱŠ›ŽȱžœŽȱ
˜ȱŠ“žœȱ‘Žȱ›ŽŒŠ—ž•Š›ȱ˜ —œ‘’™œȱ˜ȱęȱ‘ŽȱŒž›ŸŠž›Žȱ˜ȱ‘ŽȱŽŠ›‘ǯ

Lot and Block System

‘Žȱ •˜ȱ Š—ȱ ‹•˜Œ”ȱ œ¢œŽ–ȱ  Šœȱ ŽŸŽ•˜™Žȱ Šœȱ Š—ȱ ˜ž›˜ ‘ȱ ˜ȱ ‘Žȱ ›ŽŒŠ—ž•Š›ȱ œž›ŸŽ¢ȱ
œ¢œŽ–ȱŠ—ȱŒŠ—ȱ‹ŽȱžœŽȱ˜ȱœ’–™•’¢ȱ‘Žȱ•˜ŒŠ’˜—Š•ȱŽœŒ›’™’˜—œȱ˜ȱœ–Š••ȱ™Š›ŒŽ•œǰȱ™Š›’ŒȬ
ž•Š›•¢ȱ˜›ȱ•˜œȱ’—ȱŽ—œŽ•¢ȱ™˜™ž•ŠŽȱ–Ž›˜™˜•’Š—ȱŠ›ŽŠœǰȱœž‹ž›‹Š—ȱŠ›ŽŠœǰȱŠ—ȱŽ¡ž›‹œǯȱ
‘’œȱœ¢œŽ–ȱ’œȱœ˜–Ž’–Žœȱ›ŽŽ››Žȱ˜ȱŠœȱ‘Žȱ›ŽŒ˜›Žȱ™•Šȱœž›ŸŽ¢ȱœ¢œŽ–ȱ˜›ȱ‘Žȱ›ŽŒ˜›Žȱ
–Š™ȱ œž›ŸŽ¢ȱ œ¢œŽ–ǯȱ ‘Žȱ œ¢œŽ–ȱ  Šœȱ ŽœŠ‹•’œ‘Žȱ  ‘Ž—ȱ ŽŸŽ•˜™Ž›œȱ œž‹’Ÿ’Žȱ •Š—ȱ
’—ȱ‘Žȱ›ŽŒŠ—ž•Š›ȱœž›ŸŽ¢ȱœ¢œŽ–ȱŠ—ȱŠœœ’—Žȱ•˜ȱ—ž–‹Ž›œȱ˜ȱ’—’Ÿ’žŠ•ȱœ’Žœȱ ’‘’—ȱ
‹•˜Œ”œǯȱ‘Žȱ–Š™œȱ˜ȱ‘ŽœŽȱœž‹’Ÿ’œ’˜—œȱ Ž›Žȱ‘Ž—ȱꕎȱ ’‘ȱ‘Žȱ•˜ŒŠ•ȱ˜ŸŽ›—–Ž—ȱ˜ȱ
ŽœŠ‹•’œ‘ȱŠȱ™ž‹•’Œȱ›ŽŒ˜›ȱ˜ȱ‘Ž’›ȱ•˜ŒŠ’˜—œǯȱŠŒ‘ȱ‹•˜Œ”ȱ Šœȱ’Ž—’ꮍȱ™›ŽŒ’œŽ•¢ȱžœ’—ȱŠȱ
›˜ž—ȱœž›ŸŽ¢ȱ˜›ȱŽœŠ‹•’œ‘Žȱ–˜—ž–Ž—œǯ
™™•¢’—ȱ ‘Žȱ •˜ȱ Š—ȱ ‹•˜Œ”ȱ œ¢œŽ–ȱ ˜ȱ ˜•ǰȱ ž—œž›ŸŽ¢Žȱ Œ˜––ž—’’Žœȱ ‘Ž•™Žȱ
˜ȱ ’Ž—’¢ȱ ŽŠŒ‘ȱ ˜ —Ž›ȇœȱ œ’Žȱ ˜›ȱ ™Š›ŒŽ•ȱ ˜ȱ •Š—ǯȱ ¢™’ŒŠ••¢ǰȱ Šȱ œž›ŸŽ¢˜›ȱ •˜ŒŠŽȱ ‘Žȱ

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 4 10/4/2010 10:35:45 AM

 Chapter 10 – Land and Site Analysis 10.5

‹˜ž—Š›’Žœȱ ˜ȱ œ›ŽŽœȱ ˜—ȱ ‘Žȱ ›˜ž—ȱ Š—ȱ ›Ž ȱ –Š™œȱ ˜ž•’—’—ȱ ‘Žȱ ‹•˜Œ”œǯȱ ‘Ž—ȱ •˜ȱ
•’—Žœȱ  Ž›Žȱ ŽœŠ‹•’œ‘Žȱ ‹¢ȱ Š›ŽŽ–Ž—ȱ Š–˜—ȱ ™›˜™Ž›¢ȱ ˜ —Ž›œǯȱȱ ™›ŽŒ’œŽǰȱ –ŽŠœž›Žȱ
ŽœŒ›’™’˜—ȱ ŠœȱŽœŠ‹•’œ‘Žȱ˜›ȱŽŠŒ‘ȱ•˜ȱŠ—ȱŽŠŒ‘ȱ Šœȱ’ŸŽ—ȱŠȱ—ž–‹Ž›ȱ˜›ȱ•ŽĴŽ›ȱ‘Šȱ
Œ˜ž•ȱ ‹Žȱ ›ŽŽ››Žȱ ˜ȱ ’—ȱ ›˜ž’—Žȱ ›Š—œŠŒ’˜—œǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ Šȱ •˜ȱ ’—ȱ Šȱ ›ŽŒŠ—ž•Š›ȱ
œž›ŸŽ¢ȱ Š›ŽŠȱ –’‘ȱ ‹Žȱ ŽœŒ›’‹Žȱ Šœȱ ˜••˜ œDZȱ ˜ȱ śȱ ˜ȱ •˜Œ”ȱ ŗŞǰȱ ›Ž’œŽ›Žȱ ™•Š—ȱ śřşŜǰȱ
œ˜ž‘ ŽœȱšžŠ›Ž›ȱ˜ȱŽŒ’˜—ȱŗŖǰȱ˜ —œ‘’™ȱřȱ˜›‘ǰȱŠ—ŽȱřȱŠœǯȱ‘’œȱ’—˜›–Š’˜—ȱ
 Šœȱ ›ŽŒ˜›Žȱ ’—ȱ ™ž‹•’Œȱ ›ŽŒ˜›œȱ Š—ȱ  Šœȱ ”—˜ —ȱ Šœȱ Šȱ ›ŽŒ˜›Žȱ ™•Šȱ ˜ȱ ‘Žȱ Žę—Žȱ
Š›ŽŠȱ˜›ȱœž‹’Ÿ’œ’˜—ǯ

TITLE AND RECORD DATA

Ž˜›Žȱ –Š”’—ȱ Š—ȱ ˜—Ȭœ’Žȱ ’—œ™ŽŒ’˜—ǰȱ Š—ȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ ˜‹Š’—ȱ Š—ȱ Š™™›˜™›’ŠŽȱ
ŽœŒ›’™’˜—ȱ Š—ȱ ˜‘Ž›ȱ ™›˜™Ž›¢ȱ ŠŠȱ ›˜–ȱ ‘Žȱ Œ•’Ž—ȱ ˜›ȱ ›˜–ȱ ™ž‹•’œ‘Žȱ œ˜ž›ŒŽœȱ Š—ȱ
™ž‹•’Œȱ ˜Œž–Ž—œǯȱ ˜œȱ “ž›’œ’Œ’˜—œȱ ‘ŠŸŽȱ Šȱ ˜ŸŽ›—–Ž—ȱ ˜ĜŒŽȱ ǻ ‘’Œ‘ȱ ’—Œ›ŽŠœ’—•¢ȱ
’œȱ ŠŒŒŽœœ’‹•Žȱ Ÿ’Šȱ ‘Žȱ ’—Ž›—ŽǼȱ  ‘Ž›Žȱ ›Š—œŠŒ’˜—œȱ Š›Žȱ ˜Œž–Ž—Žȱ Š—ȱ –ŠŽȱ ™ž‹•’Œǯȱ
—Ž›ȱ‘Žȱ›Ž’œ›¢ȱœ¢œŽ–ǰȱ‘ŽȱŠŒŒŽœœ’‹’•’¢ȱ˜ȱ™ž‹•’Œȱ›ŽŒ˜›œǰȱ ‘’Œ‘ȱ’œȱ•ŽŠ••¢ȱ”—˜ —ȱ
Šœȱ Œ˜—œ›žŒ’ŸŽȱ —˜’ŒŽǰȱ Ž—œž›Žœȱ ‘Šȱ ’—Ž›ŽœŽȱ ’—’Ÿ’žŠ•œȱ Š›Žȱ Š‹•Žȱ ˜ȱ ›ŽœŽŠ›Œ‘ȱ Š—ǰȱ
’ȱ —ŽŒŽœœŠ›¢ǰȱ Œ˜—Žœȱ ŽŽȱ ›Š—œŽ›œǯȱ ˜œȱ ›Ž’œ›¢ȱ ˜ĜŒŽœȱ ”ŽŽ™ȱ ’—Ž¡ȱ ‹˜˜”œȱ ˜›ȱ •Š—ȱ
ŽŽœȱ Š—ȱ –˜›ŠŽœǰȱ ›˜–ȱ  ‘’Œ‘ȱ ‘Žȱ ‹˜˜”ȱ Š—ȱ ™ŠŽȱ —ž–‹Ž›ȱ ˜ȱ Šȱ ›ŽŒ˜›Žȱ ŽŽȱ
–Š¢ȱ ‹Žȱ ˜ž—ǯȱ—ȱ Š™™›Š’œŽ›ȱ –’‘ȱ Š•œ˜ȱ ꗍȱ ™Ž›’—Ž—ȱ ’—˜›–Š’˜—ȱ ’—ȱ ‘Žȱ ™›˜™Ž›¢ȇœȱ
Š‹œ›ŠŒȱ˜ȱ’•Žǰȱ ‘’Œ‘ȱ’—Œ•žŽœȱŠȱœž––Š›¢ȱ˜ȱŒ˜—ŸŽ¢Š—ŒŽœǰȱ›Š—œŽ›œǰȱŠ—ȱ˜‘Ž›ȱŠŒœȱ
žœŽȱŠœȱŽŸ’Ž—ŒŽȱ˜ȱ’•ŽȱŠœȱ Ž••ȱŠœȱŠ—¢ȱ˜‘Ž›ȱ™ž‹•’Œȱ˜Œž–Ž—œȱ‘Šȱ–Š¢ȱ’–™Š’›ȱ’•Žǯȱ
—Ž›ȱ ‘Žȱ ˜››Ž—œȱ œ¢œŽ–ǰȱ ‘’œȱ ’—˜›–Š’˜—ȱ ’œȱ œ‘˜ —ȱ ˜—ȱ ‘Žȱ ŒŽ›’ęŒŠŽȱ ˜ȱ ’•Žǯȱ —ȱ
Š’’˜—ǰȱ ˜ĜŒ’Š•ȱ –ž—’Œ’™Š•ȱ Œ˜—œ˜•’ŠŽȱ •ŽŠ•ȱ ™•Š—œȱ –Š¢ȱ Ž¡’œȱ Š—ȱ ‹Žȱ ŠŸŠ’•Š‹•Žȱ ˜›ȱ
Ž¡Š–’—Š’˜—ȱŠȱ•˜ŒŠ•ȱ˜›ȱ›Ž’˜—Š•ȱ˜ŸŽ›—–Ž—ȱ˜ĜŒŽœǯ
˜–Ž’–Žœȱ ™ž‹•’Œȱ ›ŽŒ˜›œȱ ˜ȱ —˜ȱ Œ˜—Š’—ȱ Š••ȱ ›Ž•ŽŸŠ—ȱ ’—˜›–Š’˜—ȱ Š‹˜žȱ Šȱ
™Š›’Œž•Š›ȱ™›˜™Ž›¢ǯȱ•‘˜ž‘ȱ˜ĜŒ’Š•ȱ˜Œž–Ž—œȱŠ›Žȱ‘Žȱ–˜œȱŽ™Ž—Š‹•Žȱœ˜ž›ŒŽœȱ˜ȱ
’—˜›–Š’˜—ǰȱ‘Ž¢ȱ–Š¢ȱ‹Žȱ’—Œ˜–™•ŽŽȱ˜›ȱ—˜ȱœž’Žȱ˜ȱ‘ŽȱŠ™™›Š’œŽ›ȇœȱ™ž›™˜œŽœǯȱœŽž•ȱ
œž™™˜›ȱ ŠŠȱ ŒŠ—ȱ ‹Žȱ ˜ž—ȱ ’—ȱ •Š—ȱ ›Ž’œ›Š’˜—ȱ œ¢œŽ–œǰȱ •Š—ȱ ŠŠȱ ‹Š—”œǰȱ Š—ȱ ŠœœŽœȬ

THE TORRENS SYSTEM

A system of land registration used in some Canadian provinces in which the land title authority issues
title certificates covering the ownership of land, which often serve as title insurance. The system was first
introduced in Australia in 1858, to combat the problems of uncertainty, complexity, and cost associated
with prior title systems, which depended on profit of an unbroken chain of title back to a good "root" of title.
Under the common-law form of prior title systems, land owners needed to provide their ownership of
a piece of land back to the original grant of land by the Crown to its first owner. (This is the deeds
registration system associated with the Registry system found in eastern Canada.) The documents
relating to transactions involving the land were collectively known as the "title deeds" or the "chain of
title". The original land grant could have occurred many years prior, and be influenced by many changes
in the land's ownership, or of interests affecting it. A person's ownership over land could be challenged,
possibly causing great expense to land owners and hindering its development. Even an exhaustive
search into the chain of title would not give an owner complete security because of the possibility of
undetected outstanding interests; claims by others might not be obvious.

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 10.6 The Appraisal of Real Estate – Third Canadian Edition

œ˜›œȇȱ –Š™œǯȱ ‘Žȱ ŠŸŠ’•Š‹’•’¢ȱ ˜ȱ ’—Ž›—Žȱ ŠŒŒŽœœȱ ˜ȱ ˜ŸŽ›—–Ž—ȱ •Š—ȱ ’•Žœȱ ˜›ȱ ›Ž’œ›¢ȱ
›ŽŒ˜›œȱœ’–™•’ęŽœȱ›ŽŽ›Ž—ŒŽȱ˜ȱ’•ŽȱŠ—ȱŽŽȱ’—˜›–Š’˜—ǯ

WHERE TO FIND – TITLE DATA AND OWNERSHIP INFORMATION

Most provinces now make available title and registry information through the internet. Some commercial
data providers maintain reporting services available on a subscription basis, and title search companies
will conduct customized research for a fee. Provincial agencies such as the assessor's office make land
titles data such as sales reports available.
A property's legal owner and type of ownership can be ascertained from the public records maintained
at the provincial or territorial land titles or land registry office. This information is often available online for
a fee, and local title search or abstract companies may also provide useful information.

Ownership Information
ȱ Š—ȱ Š™™›Š’œŽ›ȱ ŸŠ•žŽœȱ Šȱ ™Š›’Š•ȱ ’—Ž›Žœȱ ’—ȱ Šȱ ™›˜™Ž›¢ȱ ›Š‘Ž›ȱ ‘Š—ȱ ‘Žȱ ŽŽȱ œ’–™•Žȱ
’—Ž›Žœǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ ’—’ŒŠŽȱ Š—ȱ ŒŠ›Žž••¢ȱ Š—Š•¢£Žȱ ‘Žȱ Ž¡Œ•žŽȱ Ž•Ž–Ž—œȱ
˜ȱ’•Žǯȱ—ȱŠ™™›Š’œŽ›ȱ ‘˜ȱ’œȱŠœ”Žȱ˜ȱŽŸŽ•˜™ȱŠ—ȱ˜™’—’˜—ȱ˜ȱ‘ŽȱŸŠ•žŽȱ˜ȱŠȱ›ŠŒ’˜—Š•ȱ
˜ —Ž›œ‘’™ȱ ’—Ž›Žœȱ –žœȱ ž—Ž›œŠ—ȱ ‘Žȱ Ž¡ŠŒȱ ¢™Žȱ ˜ȱ •ŽŠ•ȱ ˜ —Ž›œ‘’™ȱ ˜ȱ Žę—Žȱ ‘Žȱ
™›˜™Ž›¢ȱ›’‘œȱ˜ȱ‹ŽȱŠ™™›Š’œŽǯ
Ž›ȱ Žę—’—ȱ ‘Žȱ ™›˜™Ž›¢ȱ ›’‘œȱ ‹Ž’—ȱ Š™™›Š’œŽǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ ’Ž—’¢ȱ
Š—¢ȱŽ¡Œ•žŽȱ›’‘œȱ‘Šȱ–Š¢ȱŠěŽŒȱŸŠ•žŽǯȱ—ȱŠ’’˜—ǰȱŠ—Š’Š—ȱ—’˜›–ȱŠ—Š›œȱ
›Žšž’›ŽœȱŠ™™›Š’œŽ›œȱ˜ȱŠ—Š•¢£ŽȱŠ—ȱ›Ž™˜›ȱŠ—¢ȱ™›’˜›ȱœŠ•Žœȱ˜ŒŒž››’—ȱ ’‘’—ȱŠȱœ™ŽŒ’ꮍȱ
—ž–‹Ž›ȱ˜ȱ¢ŽŠ›œǯȱ—ȱ–˜œȱŠœœ’—–Ž—œǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ ’••ȱŠ•œ˜ȱ’—ŸŽœ’ŠŽȱ‘Žȱ™›ŽœŽ—ŒŽȱ
Š—ȱ—Šž›Žȱ˜ȱœž›ŠŒŽȱŠ—ȱœž‹œž›ŠŒŽȱ›’‘œȱ‘›˜ž‘ȱŠȱ’•Žȱ›Ž™˜›ǰȱŠ—ȱŠ‹œ›ŠŒȱ˜ȱ’•Žǰȱ
˜›ȱ ˜‘Ž›ȱ ˜Œž–Ž—Š›¢ȱ ŽŸ’Ž—ŒŽȱ ˜ȱ ‘Žȱ ™›˜™Ž›¢ȱ ›’‘œȱ ˜ȱ ‹Žȱ Š™™›Š’œŽǯȱ ’•Žȱ ŠŠȱ
’—’ŒŠŽœȱ ŽŠœŽ–Ž—œǰȱ ›’‘œȱ ˜ȱ  Š¢ȱ Š—ȱ ˜‘Ž›ȱ ›Žœ›’Œ’˜—œȱ ‘Šȱ –’‘ȱ •’–’ȱ ‘Žȱ žœŽȱ ˜ȱ
‘Žȱ™›˜™Ž›¢ǰȱŠœȱ Ž••ȱŠœȱœ™ŽŒ’Š•ȱ›’‘œȱœžŒ‘ȱŠœȱŠ’›ȱ›’‘œǰȱ›’‘œȬ˜Ȭ™ž›Œ‘ŠœŽǰȱ›ŽŸŽ›œ’˜—Ȭ
Š›¢ȱ›’‘œǰȱ–’—Ž›Š•ȱ›’‘œǰȱ˜‹•’Š’˜—œȱ˜›ȱ•ŠŽ›Š•ȱœž™™˜›ǰȱŠ—ȱŽŠœŽ–Ž—œȱ˜›ȱŒ˜––˜—ȱ
 Š••œǯȱ ¢™’ŒŠ••¢ǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ ’œȱ —˜ȱ Š—ȱ Ž¡™Ž›ȱ ’—ȱ ’•Žȱ ’—˜›–Š’˜—ȱ ‹žȱ –žœȱ ›Ž•¢ȱ ˜—ȱ
•ŽŠ•ȱ ˜™’—’˜—œǰȱ ’•Žȱ ›ŽœŽŠ›Œ‘ȱ ›Ž™˜›œǰȱ Š—ȱ ’•Žȱ ŠŠȱ ™›˜Ÿ’Žȱ ‹¢ȱ ˜‘Ž›ȱ ™›˜Žœœ’˜—Š•œǯȱ
ŠœŽ–Ž—œǰȱ›’‘œȱ˜ȱ Š¢ǰȱŠ—ȱ™›’ŸŠŽȱŠ—ȱ™ž‹•’Œȱ›Žœ›’Œ’˜—œȱŠěŽŒȱ™›˜™Ž›¢ȱŸŠ•žŽǯ
ŠœŽ–Ž—œȱ –Š¢ȱ ™›˜Ÿ’Žȱ ˜›ȱ ˜ŸŽ›‘ŽŠȱ Š—ȱ ž—Ž››˜ž—ȱ Ž•ŽŒ›’ŒŠ•ȱ ›Š—œ–’œœ’˜—ȱ
•’—Žœǰȱ ž—Ž››˜ž—ȱ œŽ Ž›œȱ ˜›ȱ ž——Ž•œǰȱ ̘ ŠŽǰȱ ŠŸ’Š’˜—ȱ ›˜žŽœǰȱ ›˜Šœǰȱ  Š•” Š¢œǰȱ
Š—ȱ ˜™Ž—ȱ œ™ŠŒŽǯȱ ˜–Žȱ ŽŠœŽ–Ž—œȱ ˜›ȱ ›’‘œȱ ˜ȱ  Š¢ȱ ŠŒšž’›Žȱ ‹¢ȱ ž’•’¢ȱ Œ˜–™Š—’Žœȱ ˜›ȱ
™ž‹•’ŒȱŠŽ—Œ’Žœȱ–Š¢ȱ—˜ȱ‘ŠŸŽȱ‹ŽŽ—ȱžœŽȱ˜›ȱ–Š—¢ȱ¢ŽŠ›œǰȱŠ—ȱ‘ŽȱŠ™™›Š’œŽ›ȇœȱ™‘¢œ’ŒŠ•ȱ
’—œ™ŽŒ’˜—ȱ ˜ȱ ‘Žȱ ™›˜™Ž›¢ȱ –Š¢ȱ —˜ȱ ’œŒ•˜œŽȱ Š—¢ȱ ŽŸ’Ž—ŒŽȱ ˜ȱ œžŒ‘ȱ žœŽǯȱ —ȱ ŒŽ›Š’—ȱ
“ž›’œ’Œ’˜—œǰȱŽŠœŽ–Ž—œȱ‘ŠȱŠ›Žȱ—˜ȱžœŽȱ˜›ȱŠȱꗒŽȱ™Ž›’˜ȱ˜ȱ’–Žȱ–Š¢ȱ‹ŽȱŠž˜–Š’Ȭ
ŒŠ••¢ȱŽ›–’—ŠŽǯȱœŽȱ˜ȱŠȱ™›˜™Ž›¢ȱ˜›ȱŠŒŒŽœœȱ ’‘˜žȱ‘Žȱ˜ —Ž›ȇœȱ ›’ĴŽ—ȱ™Ž›–’œœ’˜—ȱ
–Š¢ȱ’ŸŽȱ‘ŽȱžœŽ›ȱŠȱ™›ŽœŒ›’™’ŸŽȱŽŠœŽ–Ž—ȱŠŒ›˜œœȱ‘Žȱ™›˜™Ž›¢ǯȱ‘’œȱ¢™Žȱ˜ȱŽŠœŽ–Ž—ȱ
žœžŠ••¢ȱ–žœȱ‹ŽȱžœŽȱ˜›ȱœŽŸŽ›Š•ȱ¢ŽŠ›œȱ ’‘˜žȱ‹Ž’—ȱŒ˜—ŽœŽȱ˜›ȱŒ‘Š••Ž—Žȱ‹¢ȱ‘Žȱ
™›˜™Ž›¢ȱ˜ —Ž›ǯȱŽœ›’Œ’˜—œȱŒ’Žȱ’—ȱ‘ŽȱŽŽȱ˜›ȱ’•Žȱ–Š¢ȱ•’–’ȱ‘Žȱ¢™Žȱ˜ȱ‹ž’•’—ȱ
˜›ȱ ‹žœ’—Žœœȱ ‘Šȱ –Š¢ȱ ‹Žȱ Œ˜—žŒŽȱ ˜—ȱ ‘Žȱ ™›˜™Ž›¢ǯȱ ȱ ¢™’ŒŠ•ȱ Ž¡Š–™•Žȱ ’œȱ Šȱ ›Žœ›’ŒȬ
’ŸŽȱ Œ˜ŸŽ—Š—ȱ ‘Šȱ ™›˜‘’‹’œȱ ‘Žȱ œŠ•Žȱ ˜ȱ •’šž˜›ȱ ˜›ȱ Šœ˜•’—Žȱ ’—ȱ Šȱ ŒŽ›Š’—ȱ ™•ŠŒŽǯȱ Ž—ȱ

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 Chapter 10 – Land and Site Analysis 10.7

Šȱ ’•Žȱ ›Ž™˜›ȱ  ’••ȱ —˜ȱ œ™ŽŒ’¢ȱ ‘Žȱ ŽŠ’•œȱ ˜ȱ ™›’ŸŠŽȱ ›Žœ›’Œ’˜—œǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ
›ŽŠȱ Šȱ Œ˜™¢ȱ ˜ȱ ‘Žȱ ŽŽȱ ˜›ȱ ˜‘Ž›ȱ Œ˜—ŸŽ¢Š—ŒŽȱ ˜ȱ ’Ž—’¢ȱ ‘Žȱ •’–’Š’˜—œȱ ’–™˜œŽȱ
˜—ȱ ‘Žȱ ™›˜™Ž›¢Dzȱ ’—Ž›™›ŽŠ’˜—ȱ ŒŠ—ȱ ›Žšž’›Žȱ •ŽŠ•ȱ ›Š’—’—ȱ ˜›ȱ ‘Žȱ ŠŸ’ŒŽȱ ˜ȱ Šȱ •Š ¢Ž›ǯȱ
™™›Š’œŽ›œȱ ˜Ž—ȱ ’—Œ•žŽȱ Šȱ •’–’’—ȱ Œ˜—’’˜—ȱ ’—ȱ ‘Ž’›ȱ Š™™›Š’œŠ•ȱ ›Ž™˜›œȱ ›ŽŠ›’—ȱ
ŽŠœŽ–Ž—œȱ˜›ȱ™›’ŸŠŽȱ›Žœ›’Œ’˜—œȱ‘Šȱ‘ŠŸŽȱ—˜ȱ‹ŽŽ—ȱ›ŽŒ˜›Žȱ’—ȱ™ž‹•’Œȱ›ŽŒ˜›œǯ

Zoning and Land Use Information

˜ŒŠ•ȱ˜ŸŽ›—–Ž—œȱœžŒ‘ȱŠœȱŒ’’Žœǰȱ˜ —œǰȱŠ—ȱ›Ž’˜—Š•ȱ’œ›’ŒœȱžœžŠ••¢ȱ›Žž•ŠŽȱ•Š—ȱ
žœŽȱ Š—ȱ ŽŸŽ•˜™–Ž—ǰȱ ‹žȱ ‘Ž¢ȱ Š›Žȱ ˜Ž—ȱ œž‹“ŽŒȱ ˜ȱ ›Ž’˜—Š•ǰȱ ™›˜Ÿ’—Œ’Š•ǰȱ Š—ȱ ŽŽ›Š•ȱ
Œ˜—›˜•œȱ Šœȱ  Ž••ǯȱ —ȱ Š—Š•¢£’—ȱ •Š—ȱ žœŽȱ Œ˜—›˜•œǰȱ Š—ȱ Š™™›Š’œŽ›ȱ Œ˜—œ’Ž›œȱ Š••ȱ Œž››Ž—ȱ
›Žž•Š’˜—œȱ Š—ȱ ‘Žȱ •’”Ž•’‘˜˜ȱ ˜ȱ Šȱ Œ‘Š—Žȱ ’—ȱ ‘Žȱ •Š ǯȱ œžŠ••¢ȱ Šȱ £˜—Žȱ ŒŠ••œȱ ˜›ȱ Šȱ
Ž—Ž›Š•ȱžœŽȱœžŒ‘ȱŠœȱ›Žœ’Ž—’Š•ǰȱŒ˜––Ž›Œ’Š•ǰȱ˜›ȱ’—žœ›’Š•ȱŠ—ȱ‘Ž—ȱœ™ŽŒ’ęŽœȱŠȱ¢™Žȱ˜›ȱ
Ž—œ’¢ȱ˜ȱžœŽǯȱ˜—’—ȱŠ—ȱ˜‘Ž›ȱ•Š—ȱžœŽȱ›Žž•Š’˜—œȱ˜Ž—ȱŒ˜—›˜•ȱžœŽȱŠ—ȱ‹ž’•’—ȱ
œŠ—Š›œǰȱ ’‘ȱ‘Žȱ•ŠĴŽ›ȱ’—Œ•ž’—ȱ‘Žȱ˜••˜ ’—DZ
yȱ
Ž’‘ȱŠ—ȱœ’£Žȱ˜ȱ‹ž’•’—œ
yȱ ˜ȱŒ˜ŸŽ›ŠŽȱ˜›ȱ̘˜›ȱœ™ŠŒŽȱ›Š’˜ȱǻǼȱŽ—œ’¢ŗ
yȱ Žšž’›Žȱ•Š—œŒŠ™’—ȱ˜›ȱ˜™Ž—ȱœ™ŠŒŽ
yȱ ž–‹Ž›ȱ˜ȱž—’œȱŠ••˜ Ž
yȱ Š›”’—ȱ›Žšž’›Ž–Ž—œ
yȱ ’—ȱ›Žšž’›Ž–Ž—œ
yȱ ž’•’—ȱœŽ‹ŠŒ”œ
yȱ •Š—ȱ•’—Žœȱ˜›ȱžž›Žȱœ›ŽŽȱ ’Ž—’—œ
yȱ ‘Ž›ȱŠŒ˜›œȱ˜ȱ’–™˜›Š—ŒŽȱ˜ȱ‘Žȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱ˜ȱ‘Žȱœ’Ž
˜œȱ£˜—’—ȱ˜›’—Š—ŒŽœȱ’Ž—’¢ȱŠ—ȱŽę—Žȱ‘ŽȱžœŽœȱ˜ȱ ‘’Œ‘ȱŠȱ™›˜™Ž›¢ȱ–Š¢ȱ‹Žȱ™žȱ
 ’‘˜žȱ ›ŽœŽ›ŸŠ’˜—ȱ ˜›ȱ ›ŽŒ˜ž›œŽȱ ˜ȱ •ŽŠ•ȱ ’—Ž›ŸŽ—’˜—ǯȱ ‘’œȱ ’œȱ ›ŽŽ››Žȱ ˜ȱ Šœȱ Šȱ žœŽȱ ‹¢ȱ
›’‘ǯȱ ‘Ž¢ȱ Š•œ˜ȱ ŽœŒ›’‹Žȱ ‘Žȱ ™›˜ŒŽœœȱ ˜›ȱ ˜‹Š’—’—ȱ —˜—Œ˜—˜›–’—ȱ žœŽȱ ™Ž›–’œǰȱ ŸŠ›’Ȭ
Š—ŒŽœǰȱ Š—ȱ £˜—’—ȱ Œ‘Š—Žœǰȱ ’ȱ ™Ž›–’ĴŽǯȱ —ȱ Š›ŽŠœȱ œž‹“ŽŒȱ ˜ȱ ̘˜œǰȱ ŽŠ›‘šžŠ”Žœǰȱ Š—ȱ
˜‘Ž›ȱ —Šž›Š•ȱ ‘Š£Š›œǰȱ œ™ŽŒ’Š•ȱ £˜—’—ȱ Š—ȱ ‹ž’•’—ȱ ›Žž•Š’˜—œȱ –Š¢ȱ ’–™˜œŽȱ ›Žœ›’ŒȬ
’˜—œȱ˜—ȱŒ˜—œ›žŒ’˜—ǯȱ—ȱŒ˜ŠœŠ•ȱŠ—ȱ‘’œ˜›’Œȱ’œ›’Œœǰȱ£˜—’—ȱ›Žœ›’Œ’˜—œȱ–Š¢ȱ˜ŸŽ›—ȱ
‹ž’•’—ȱ•˜ŒŠ’˜—ȱŠ—ȱŽœ’—ǯ
‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱŠ•œ˜ȱŒ˜—œ’Ž›ȱ™˜Ž—’Š•ȱŒ‘Š—Žœȱ’—ȱ˜ŸŽ›—–Ž—ȱ›Žž•Š’˜—œǯȱǰȱ
˜›ȱ Ž¡Š–™•Žǰȱ Šȱ ‹ž’•’—ȱ –˜›Š˜›’ž–ȱ ˜›ȱ ŒŽœœŠ’˜—ȱ ˜ȱ •Š—ȱ žœŽȱ Š™™•’ŒŠ’˜—œȱ ’œȱ ’—ȱ ŽěŽŒȱ
˜›ȱ Šȱ œŠŽȱ ™Ž›’˜ǰȱ Šȱ ™›˜™Ž›¢ȇœȱ ™›˜œ™ŽŒ’ŸŽȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ –Š¢ȱ ‘ŠŸŽȱ ˜ȱ ‹Žȱ
Ž•Š¢Žǯȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱŒ˜—œ’Ž›ȱ‘ŽȱŠ™™›˜™›’ŠŽ—Žœœȱ˜ȱ‘ŽȱŒž››Ž—ȱ£˜—’—ȱŠ—ȱ
‘Žȱ›ŽŠœ˜—Š‹•Žȱ™›˜‹Š‹’•’¢ȱ˜ȱŠȱ£˜—’—ȱŒ‘Š—Žǯȱ
’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱ›ŽŒ˜––Ž—Š’˜—œȱ
–Š¢ȱ ›Ž•¢ȱ ˜—ȱ ‘Žȱ ™›˜‹Š‹’•’¢ȱ ˜ȱ Šȱ £˜—’—ȱ Œ‘Š—Žǯȱ —Žȱ ˜ȱ ‘Žȱ Œ›’Ž›’Šȱ ˜›ȱ ‘Žȱ ‘’‘Žœȱ
Š—ȱ‹ŽœȱžœŽȱŒ˜—Œ•žœ’˜—ȱ’œȱ‘Šȱ‘ŽȱžœŽȱ–žœȱ‹Žȱ•ŽŠ••¢ȱ™Ž›–’œœ’‹•Žǯȱȱ‘Žȱ‘’‘ŽœȱŠ—ȱ
‹Žœȱ žœŽȱ ˜ȱ Šȱ œ’Žȱ ’œȱ ™›Ž’ŒŠŽȱ ˜—ȱ Šȱ £˜—’—ȱ Œ‘Š—Žǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ ’—ŸŽœ’ŠŽȱ
‘Žȱ™›˜‹Š‹’•’¢ȱ‘ŠȱœžŒ‘ȱŠȱŒ‘Š—Žȱ ’••ȱ˜ŒŒž›ǯȱ‘ŽȱŠ™™›Š’œŽ›ȱ–Š¢ȱ’—Ž›Ÿ’Ž ȱ™•Š——’—ȱ
Š—ȱ £˜—’—ȱ œŠěȱ Š—ȱ œž¢ȱ ™ŠĴŽ›—œȱ ˜ȱ £˜—’—ȱ Œ‘Š—Žȱ ˜ȱ ŠœœŽœœȱ ‘Žȱ •’”Ž•’‘˜˜ȱ ˜ȱ Šȱ
Œ‘Š—Žǯȱ‘ŽȱŠ™™›Š’œŽ›ȱŒŠ—ȱŽ—Ž›Š••¢ȱŽ•’–’—ŠŽȱ‘˜œŽȱžœŽœȱ‘ŠȱŠ›ŽȱŒ•ŽŠ›•¢ȱ—˜ȱŒ˜–™ŠȬ

1
SR (floor space ratio) is synonymous with the term FAR (floor area ratio) and is defined as the ratio or percentage
of the site area that can be built upon, e.g., if a property has 100,000 square feet and a 0.5 or 50% FSR, then the
buildable area is 50,000 square feet (100,000 x 0.5)

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 10.8 The Appraisal of Real Estate – Third Canadian Edition

’‹•Žȱ  ’‘ȱ Ž¡’œ’—ȱ žœŽœȱ ’—ȱ ‘Žȱ Š›ŽŠȱ Šœȱ  Ž••ȱ Šœȱ žœŽœȱ ‘Šȱ ‘ŠŸŽȱ ™›ŽŸ’˜žœ•¢ȱ ‹ŽŽ—ȱ Ž—’Žǯȱ
Ž›ȱ›ŽŸ’Ž ’—ȱŠŸŠ’•Š‹•Žȱ™ž‹•’ŒȱŠ—ȱ™›’ŸŠŽȱ•Š—ȱžœŽȱ’—˜›–Š’˜—ǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ–Š¢ȱ
Š•œ˜ȱ™›Ž™Š›ŽȱŠȱ˜›ŽŒŠœȱ˜ȱ•Š—ȱŽŸŽ•˜™–Ž—ȱ˜›ȱ‘ŽȱŠ›ŽŠǯȱȱ‘Žȱ£˜—’—ȱ˜ȱ‘Žȱœž‹“ŽŒȱ
œ’Žȱ ’œȱ —˜ȱ Œ˜–™Š’‹•Žȱ  ’‘ȱ ‘Žȱ ™›˜‹Š‹•Žȱ ˜›ŽŒŠœȱ žœŽœǰȱ ‘Žȱ ™›˜‹Š‹’•’¢ȱ ˜ȱ Šȱ Œ‘Š—Žȱ ’—ȱ
‘Žȱ£˜—’—ȱ’œȱŽœ™ŽŒ’Š••¢ȱ‘’‘ȱ˜›ȱœ™ŽŒž•Š’ŸŽǯȱ
˜ ŽŸŽ›ǰȱ‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱ›ŽŒ˜—’£Žȱ
‘ŠȱŠȱ£˜—’—ȱŒ‘Š—Žȱ’œȱ—ŽŸŽ›ȱŗŖŖƖȱŒŽ›Š’—ȱŠ—ȱœ‘˜ž•ȱŠ•Ž›ȱ‘ŽȱŒ•’Ž—ȱ˜ȱ‘ŠȱŠŒȱ’ȱ’ȱ
’œȱ›Ž•ŽŸŠ—ȱ˜ȱ‘Žȱ™ž›™˜œŽȱ˜ȱ‘ŽȱŠ™™›Š’œŠ•ǯ

WHERE TO FIND – ZONING AND LAND USE INFORMATION

Although zoning by-laws and maps are public records that are available at zoning offices or on the
internet, an appraiser may need help from planning and zoning staff to understand the impact of zoning
regulations. Often an appraiser must contact several agencies. Zoning and land use restrictions are not
usually listed in the recorded title to a property, so confirmation from controlling agencies is necessary.

Assessment and Tax Information

ŽŠ•ȱ™›˜™Ž›¢ȱŠ¡Žœȱ’—ȱŠ••ȱ“ž›’œ’Œ’˜—œȱŠ›Žȱ‹ŠœŽȱ˜—ȱŠȱŸŠ•˜›Ž–ȱŠœœŽœœ–Ž—œǯȱŠ¡Š’˜—ȱ
•ŽŸŽ•œȱ Š›Žȱ œ’—’ęŒŠ—ȱ ’—ȱ Œ˜—œ’Ž›’—ȱ Šȱ ™›˜™Ž›¢ȇœȱ ™˜Ž—’Š•ȱ žœŽœǯȱ ›˜–ȱ ‘Žȱ ™›ŽœŽ—ȱ
ŠœœŽœœ–Ž—ǰȱ‘ŽȱŒž››Ž—ȱŠ¡ȱ›ŠŽȱŠ—ȱŠȱ›ŽŸ’Ž ȱ˜ȱ™›ŽŸ’˜žœȱŠ¡ȱ›ŠŽœǰȱ‘ŽȱŠ™™›Š’œŽ›ȱŒŠ—ȱ
˜›–ȱ Šȱ Œ˜—Œ•žœ’˜—ȱ Š‹˜žȱ žž›Žȱ ›Ž—œȱ ’—ȱ ™›˜™Ž›¢ȱ Š¡Š’˜—ǯȱ œœŽœœŽȱ ŸŠ•žŽœȱ –’‘ȱ
—˜ȱ ‹Žȱ ˜˜ȱ ’—’ŒŠ˜›œȱ ˜ȱ ‘Žȱ –Š›”Žȱ ŸŠ•žŽȱ ˜ȱ ’—’Ÿ’žŠ•ȱ ™›˜™Ž›’Žœȱ ‹ŽŒŠžœŽȱ –Šœœȱ
Š™™›Š’œŠ•œȱ‹ŠœŽȱ˜—ȱœŠ’œ’ŒŠ•ȱ–Ž‘˜˜•˜¢ȱŽ—ȱ˜ȱŽšžŠ•’£Žȱ‘ŽȱŠ™™•’ŒŠ’˜—ȱ˜ȱŠ¡Žœȱ
˜ȱ ŠŒ‘’ŽŸŽȱ ™Š›’¢ȱ Š–˜—ȱ ŠœœŽœœ–Ž—ȱ •ŽŸŽ•œȱ ’—ȱ Šȱ ’ŸŽ—ȱ ’œ›’Œǯȱ ŽŸŽ›‘Ž•Žœœǰȱ ’—ȱ œ˜–Žȱ
Š›ŽŠœȱ Š—ȱ ˜›ȱ œ˜–Žȱ ™›˜™Ž›¢ȱ ¢™Žœǰȱ ŠœœŽœœŽȱ ŸŠ•žŽȱ –Š¢ȱ Š™™›˜¡’–ŠŽȱ –Š›”Žȱ ŸŠ•žŽȱ
’ȱ ‘Žȱ Ž—Š‹•’—ȱ •Ž’œ•Š’˜—ȱ ›Žšž’›Žœȱ –Š›”Žȱ ŸŠ•žŽȱ ŠœœŽœœ–Ž—œǯȱ ‘Žȱ ›Ž•’Š‹’•’¢ȱ ˜ȱ •˜ŒŠ•ȱ
ŠœœŽœœ–Ž—œȱŠœȱ’—’ŒŠ˜›œȱ˜ȱ–Š›”ŽȱŸŠ•žŽȱŸŠ›’Žœȱ›˜–ȱ’œ›’Œȱ˜ȱ’œ›’Œǯ

WHERE TO FIND – ASSESSMENT AND TAX INFORMATION

The records of the assessor or tax collector can provide details concerning a property's assessed value
and annual tax burden. Often, an appraiser obtains property information from the local assessment
authority in the early stages of an appraisal to confirm legal description, address, and other
property particulars.

PHYSICAL CHARACTERISTICS OF LAND

—ȱ œ’Žȱ ŽœŒ›’™’˜—ȱ Š—ȱ Š—Š•¢œ’œǰȱ Š—ȱ Š™™›Š’œŽ›ȱ ŽœŒ›’‹Žœȱ Š—ȱ ’—Ž›™›Žœȱ ‘˜ ȱ ‘Žȱ
™‘¢œ’ŒŠ•ȱ Œ‘Š›ŠŒŽ›’œ’Œœȱ ˜ȱ ‘Žȱ œ’Žȱ ’—ĚžŽ—ŒŽȱ ŸŠ•žŽȱ Š—ȱ ‘˜ ȱ ‘Žȱ ™‘¢œ’ŒŠ•ȱ ’–™›˜ŸŽȬ
–Ž—œȱ›Ž•ŠŽȱ˜ȱ‘Žȱœ’ŽȱŠ—ȱ˜ȱ—Ž’‘‹˜ž›’—ȱ™›˜™Ž›’Žœǯȱ–™˜›Š—ȱ™‘¢œ’ŒŠ•ȱŒ‘Š›ŠŒŽ›Ȭ
’œ’Œœȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ ’Žȱœ’£ŽȱŠ—ȱœ‘Š™Ž
yȱ ˜›—Ž›ȱ’—ĚžŽ—ŒŽ
yȱ •˜ĴŠŽ

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 Chapter 10 – Land and Site Analysis 10.9

yȱ ¡ŒŽœœȱ•Š—ȱŠ—ȱœž›™•žœȱ•Š—
yȱ ˜™˜›Š™‘¢
yȱ ’•’’Žœ
yȱ ’Žȱ’–™›˜ŸŽ–Ž—œ
yȱ ŒŒŽœœ’‹’•’¢
yȱ —Ÿ’›˜—–Ž—
yȱ ’£ŽȱŠ—ȱ‘Š™Ž
ȱ œ’£Žȱ Š—ȱ œ‘Š™Žȱ ŽœŒ›’™’˜—ȱ œŠŽœȱ Šȱ œ’Žȇœȱ
’–Ž—œ’˜—œȱ œžŒ‘ȱ Šœȱ œ›ŽŽȱ ›˜—ŠŽǰȱ  ’‘ǰȱ Š—ȱ The physical characteristics of a site relate
to size, shape, plottage potential, corner
Ž™‘ȱŠ—ȱ•’œœȱŠ—¢ȱŠŸŠ—ŠŽœȱ˜›ȱ’œŠŸŠ—ŠŽœȱ
influence, the presence of excess or
ŒŠžœŽȱ ‹¢ȱ ‘ŽœŽȱ ™‘¢œ’ŒŠ•ȱ Œ‘Š›ŠŒŽ›’œ’Œœǯȱ ‘Žȱ
surplus land, topography, available utilities,
Š™™›Š’œŽ›ȱ ŽœŒ›’‹Žœȱ ‘Žȱ œ’Žȱ Š—ȱ Š—Š•¢£Žœȱ ‘˜ ȱ on-site and off-site improvements, location,
’œȱ œ’£Žȱ Š—ȱ œ‘Š™Žȱ ŠěŽŒȱ ™›˜™Ž›¢ȱ ŸŠ•žŽǯȱ ‘Žȱ and environment.
Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ ™Š¢ȱ œ™ŽŒ’Š•ȱ ŠĴŽ—’˜—ȱ ˜ȱ Š—¢ȱ
Œ‘Š›ŠŒŽ›’œ’Œœȱ ‘Šȱ Š›Žȱ ž—žœžŠ•ȱ ˜›ȱ ‘Žȱ —Ž’‘Ȭ
‹˜ž›‘˜˜ǯȱ‘ŽȱŽěŽŒœȱ˜ȱ‘Žȱœ’£ŽȱŠ—ȱœ‘Š™Žȱ˜ȱŠȱ™›˜™Ž›¢ȱŸŠ›¢ȱ ’‘ȱ’œȱ™›˜‹Š‹•ŽȱžœŽǯȱ
˜›ȱŽ¡Š–™•ŽǰȱŠ—ȱ˜Ȭœ‘Š™Žȱ™Š›ŒŽ•ȱ–Š¢ȱ‹ŽȱŠ™™›˜™›’ŠŽȱ˜›ȱŠȱ Ž••’—ȱ‹žȱž—ŠŒŒŽ™Ȭ
Š‹•Žȱ˜›ȱŒŽ›Š’—ȱ¢™Žœȱ˜ȱŒ˜––Ž›Œ’Š•ȱ˜›ȱ’—žœ›’Š•ȱžœŽǯȱȱ›’Š—ž•Š›ȱ•˜ȱ–Š¢ȱ—˜ȱ‘ŠŸŽȱ
‘ŽȱœŠ–Žȱž’•’¢ȱŠœȱŠȱ›ŽŒŠ—ž•Š›ȱ•˜ȱžŽȱ˜ȱ’œȱœ’£ŽȱŠ—ȱœ‘Š™Žǯ
‘Žȱœ’£Žȱ˜ȱŠȱ™Š›ŒŽ•ȱ˜ȱ•Š—ȱ’œȱ–ŽŠœž›ŽȱŠ—ȱŽ¡™›ŽœœŽȱ’—ȱ’쎛Ž—ȱž—’œǰȱŽ™Ž—Ȭ
’—ȱ ˜—ȱ •˜ŒŠ•ȱ Œžœ˜–ȱ Š—ȱ •Š—ȱ žœŽǯȱ —ȱ Š—ŠŠǰȱ ™›˜Žœœ’˜—Š•ȱ •Š—ȱ œž›ŸŽ¢˜›œȇȱ  ˜›”ȱ ’œȱ
—˜›–Š••¢ȱŒ˜–™•ŽŽȱžœ’—ȱ‘Žȱ–Ž›’Œȱœ¢œŽ–Dzȱ‘˜ ŽŸŽ›ǰȱ‘Žȱ›ŽŠ•ȱŽœŠŽȱ’—žœ›¢ȱŒ˜—’—Ȭ
žŽœȱ ˜ȱ  ˜›”ȱ  ’‘ȱ ‘Žȱ ’–™Ž›’Š•ȱ œ¢œŽ–ǯȱ Š›Žȱ ›ŠŒœȱ ˜ȱ •Š—ȱ Š›Žȱ žœžŠ••¢ȱ –ŽŠœž›Žȱ
’—ȱ ŠŒ›Žœȱ ˜›ȱ ‘ŽŒŠ›Žœǯȱ –Š••Ž›ȱ ™Š›ŒŽ•œȱ Š›Žȱ žœžŠ••¢ȱ –ŽŠœž›Žȱ ’—ȱ œšžŠ›Žȱ ŽŽȱ ˜›ȱ œšžŠ›Žȱ
–Ž›Žœǯȱ –™Ž›’Š•ȱ ’–Ž—œ’˜—œȱ Š›Žȱ Ž¡™›ŽœœŽȱ ’—ȱ ŽŽȱ Š—ȱ Ž—‘œȱ ˜ȱ ŽŽǰȱ —˜ȱ ’—Œ‘Žœǰȱ ˜›ȱ
ŽŠœ¢ȱŒŠ•Œž•Š’˜—ǯ
›˜—ŠŽȱ ’œȱ ‘Žȱ –ŽŠœž›Žȱ ˜˜ŠŽȱ ˜ȱ Šȱ œ’Žȱ ‘Šȱ Š‹žœȱ Šȱ œ›ŽŽǰȱ •Š”Žȱ ˜›ȱ ›’ŸŽ›ǰȱ
›Š’•›˜Šǰȱ˜›ȱ˜‘Ž›ȱŽŠž›Žȱ›ŽŒ˜—’£Žȱ‹¢ȱ‘Žȱ–Š›”Žǯȱ‘Žȱ›˜—ŠŽȱ–Š¢ȱ˜›ȱ–Š¢ȱ—˜ȱ‹Žȱ
‘ŽȱœŠ–ŽȱŠœȱ‘Žȱ ’‘ȱ˜ȱ‘Žȱ™›˜™Ž›¢ȱ‹ŽŒŠžœŽȱŠȱ™›˜™Ž›¢ȱ–Š¢ȱ‹Žȱ’››Žž•Š›•¢ȱœ‘Š™Žȱ
˜›ȱ‘ŠŸŽȱ›˜—ŠŽȱ˜—ȱ–˜›Žȱ‘Š—ȱ˜—Žȱœ’Žǯ
’£Žȱ’쎛Ž—ŒŽœȱŒŠ—ȱŠěŽŒȱŸŠ•žŽȱŠ—ȱŠ›ŽȱŒ˜—œ’Ž›Žȱ’—ȱœ’ŽȱŠ—Š•¢œ’œǯȱŽžŒ’—ȱœŠ•Žȱ
™›’ŒŽœȱ ˜ȱ Œ˜—œ’œŽ—ȱ ž—’œȱ ˜ȱ Œ˜–™Š›’œ˜—ȱ ŠŒ’•’ŠŽœȱ ‘Žȱ Š—Š•¢œ’œȱ ˜ȱ Œ˜–™Š›Š‹•Žȱ œ’Žœȱ
Š—ȱŒŠ—ȱ’Ž—’¢ȱ›Ž—œȱ’—ȱ–Š›”Žȱ‹Ž‘ŠŸ’˜ž›ǯȱ Ž—Ž›Š••¢ǰȱŠœȱœ’£Žȱ’—Œ›ŽŠœŽœǰȱž—’ȱ™›’ŒŽœȱ
ŽŒ›ŽŠœŽǯȱ˜—ŸŽ›œŽ•¢ǰȱŠœȱœ’£ŽȱŽŒ›ŽŠœŽœǰȱž—’ȱ™›’ŒŽœȱ’—Œ›ŽŠœŽǯȱ‘Žȱž—Œ’˜—Š•ȱž’•’¢ȱ˜›ȱ
Žœ’›Š‹’•’¢ȱ˜ȱŠȱœ’Žȱ˜Ž—ȱŸŠ›’ŽœȱŽ™Ž—’—ȱ˜—ȱ‘Žȱ¢™Žœȱ˜ȱžœŽœȱ˜ȱ‹Žȱ™•ŠŒŽȱ˜—ȱ‘Žȱ
™Š›ŒŽ•ǯȱ’쎛Ž—ȱ™›˜œ™ŽŒ’ŸŽȱžœŽœȱ‘ŠŸŽȱ’ŽŠ•ȱœ’£ŽȱŠ—ȱŽ™‘ȱŒ‘Š›ŠŒŽ›’œ’Œœȱ‘Šȱ’—ĚžȬ
Ž—ŒŽȱ ŸŠ•žŽȱ Š—ȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽǯȱ —ȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ ›ŽŒ˜—’£Žȱ ‘’œȱ ŠŒȱ  ‘Ž—ȱ
Š™™›Š’œ’—ȱœ’Žœȱ˜ȱž—žœžŠ•ȱœ’£Žȱ˜›ȱœ‘Š™Žǯȱ—ȱŠ™™›Š’œŽ›ȱŒŠ—ȱ˜‹œŽ›ŸŽȱŸŠ•žŽȱŽ—Ž—Œ’Žœȱ
‹¢ȱœž¢’—ȱ–Š›”ŽȱœŠ•Žœȱ˜ȱ•˜œȱ˜ȱŸŠ›’˜žœȱœ’£ŽœȱŠ—ȱ‘Ž’›ȱŠ‹’•’¢ȱ˜ȱœž™™˜›ȱœ™ŽŒ’ęŒȱ
žœŽœȱ˜›ȱ’—Ž—œ’’Žœȱ˜ȱŽŸŽ•˜™–Ž—ǯȱ—ȱ›Žœ’Ž—’Š•ȱŠ™™›Š’œŠ•ǰȱŠȱ•Š›Žȱ›’Š—ž•Š›ȱ•˜ȱ–Š¢ȱ
—˜ȱ‘ŠŸŽȱŠ—¢ȱ›ŽŠŽ›ȱŸŠ•žŽȱ‹ŽŒŠžœŽȱ˜—•¢ȱ˜—Žȱ Ž••’—ȱž—’ȱŒŠ—ȱ‹Žȱ‹ž’•ȱ˜—ȱ’ȱŠŒŒ˜›Ȭ
’—ȱ˜ȱ£˜—’—ȱŠ—ȱœž‹’Ÿ’œ’˜—ȱ›Žž•Š’˜—œǯȱ‘Žȱ•Š›Žȱž—ŽŸŽ•˜™Žȱ›Ž–Š’—Ž›ȱ ˜ž•ȱ
‹Žȱœž›™•žœȱ•Š—ǰȱ ‘’Œ‘ȱ’œȱ’œŒžœœŽȱ‹Ž•˜ ǯ

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 10.10 The Appraisal of Real Estate – Third Canadian Edition

Metric Imperial
Distance – Metre(m) Distance – Feet (Ft)
1m = +/-3.028084 feet 1 ft = 0.3048006 metre
Distance – Kilometre (km) Distance – Mile (mi)
1km = +/-0.621371 mile (3,280.84 feet) 1 mi = +/- 1.609.35 kilometres (1,609.35 metres)
Area – Hectare (ha) Area – Acre (ac)
1 ha = 2.471054 acres (107,639.1 square feet) 1 ac = 0.404687 hectare (4,046.87 square metres)

Corner Influence
—ȱ‘Žȱ•Š¢˜žȱ˜ȱ‹ž’•’—ȱ’–™›˜ŸŽ–Ž—œȱŠ—ȱ‘Žȱœž‹’Ÿ’œ’˜—ȱ˜ȱ•Š›Žȱ™•˜œǰȱŒ˜›—Ž›ȱ•˜œȱ
‘ŠŸŽȱ–˜›Žȱ̎¡’‹’•’¢ȱŠ—ȱ‘’‘Ž›ȱŸ’œ’‹’•’¢ȱ‘Š—ȱ’—Ž›’˜›ȱ™›˜™Ž›’Žœǯȱȱœ˜›Žȱ˜—ȱŠȱŒ˜›—Ž›ȱ
–Š¢ȱ ‘ŠŸŽȱ ‘Žȱ ŠŸŠ—ŠŽȱ ˜ȱ ’›ŽŒȱ ŠŒŒŽœœȱ ›˜–ȱ ‹˜‘ȱ œ›ŽŽœȱ Š—ȱ ™›˜–’—Ž—ȱ Œ˜›—Ž›ȱ
Ÿ’œ’‹’•’¢ȱ Š—ȱ Ž¡™˜œž›Žǯȱ ˜›—Ž›ȱ Ž¡™˜œž›Žȱ –Š¢ȱ ™›˜Ÿ’Žȱ ŠŸŠ—ŠŽ˜žœȱ ’—›Žœœȱ Š—ȱ
Ž›Žœœȱ ˜›ȱ Šȱ ›’ŸŽȬ’—ȱ ‹žœ’—Žœœǯȱ ˜›ȱ ›Žœ’Ž—’Š•ȱ ™›˜™Ž›’Žœǰȱ Œ˜›—Ž›ȱ •˜ŒŠ’˜—œȱ –Š¢ȱ ‘ŠŸŽȱ
—ŽŠ’ŸŽȱ ’–™•’ŒŠ’˜—œDzȱ šž’Žǰȱ Œž•ȬŽȬœŠŒȱ œ’Žœȱ ’—ȱ ‘Žȱ ’—Ž›’˜›ȱ ˜ȱ Šȱ œž‹’Ÿ’œ’˜—ȱ –Š¢ȱ ‹Žȱ
–˜›Žȱ Žœ’›Š‹•Žȱ Š—ȱ Œ˜––Š—ȱ ‘’‘Ž›ȱ ™›’ŒŽœǯȱ Žœ’Ž—ŒŽœȱ ˜—ȱ Œ˜›—Ž›ȱ œ’Žœȱ Š›Žȱ Ž¡™˜œŽȱ
˜ȱ–˜›Žȱ›ŠĜŒȱ—˜’œŽȱŠ—ȱ™›˜Ÿ’Žȱ•ŽœœȱœŽŒž›’¢ǯȱ —Ž›œȱ˜ȱŒ˜›—Ž›ȱœ’Žœȱ–Š¢ȱ™Š¢ȱ‘’‘Ž›ȱ
Œ˜œœȱ ˜›ȱ ›˜—Ȭ˜˜ŠŽȱ œ’Ž Š•”œȱ Š—ȱ ŠœœŽœœ–Ž—œǰȱ Š—ȱ ‘Žȱ œ’Žȱ œ›ŽŽȱ œŽ‹ŠŒ”ȱ –Š¢ȱ
ŠěŽŒȱ‘Žȱ™Ž›–’ĴŽȱœ’£Žȱ˜ȱ‘Žȱ‹ž’•’—ǯȱœžŠ••¢ȱ˜ —Ž›œȱ˜ȱ›Žœ’Ž—ŒŽœȱ˜—ȱŒ˜›—Ž›ȱ•˜œȱ
‘ŠŸŽȱ˜ȱ–Š’—Š’—ȱŠȱ•Š›Ž›ȱ•Š—œŒŠ™ŽȱŠ›ŽŠȱ‘Šȱ–Š¢ǰȱ’—ȱŠŒǰȱ‹Žȱ™ž‹•’Œȱ™›˜™Ž›¢ǯ

Plottage
˜–Ž’–Žœȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱ›Žœž•œȱ›˜–ȱŠœœŽ–‹•’—ȱ ˜ȱ˜›ȱ–˜›Žȱ™Š›ŒŽ•œȱ˜ȱ•Š—ȱ
ž—Ž›ȱ ˜—Žȱ ˜ —Ž›œ‘’™ǯȱ ȱ ‘Žȱ Œ˜–‹’—Žȱ ™Š›ŒŽ•œȱ ‘ŠŸŽȱ Šȱ ›ŽŠŽ›ȱ ž—’ȱ ŸŠ•žŽȱ ‘Š—ȱ ‘Ž¢ȱ
’ȱœŽ™Š›ŠŽ•¢ǰȱ™•˜ĴŠŽȱŸŠ•žŽȱ’œȱŒ›ŽŠŽǯȱ•˜ĴŠŽȱ’œȱŠ—ȱ’—Œ›Ž–Ž—ȱ˜ȱŸŠ•žŽȱ‘Šȱ›Žœž•œȱ
 ‘Ž—ȱ  ˜ȱ ˜›ȱ –˜›Žȱ œ’Žœȱ Š›Žȱ Œ˜–‹’—Žȱ ˜ȱ ™›˜žŒŽȱ Šȱ •Š›Ž›ȱ œ’Žȱ  ’‘ȱ ›ŽŠŽ›ȱ ž’•’¢ǯȱ
˜›ȱ Ž¡Š–™•Žǰȱ ‘Ž›Žȱ –Š¢ȱ ‹Žȱ ›ŽŠȱ Ž–Š—ȱ ˜›ȱ
˜—ŽȬŠŒ›Žȱ •˜œȱ ’—ȱ Š—ȱ ’—žœ›’Š•ȱ ™Š›”ȱ  ‘Ž›Žȱ –˜œȱ
corner influence ˜ȱ ‘Žȱ œž‹’Ÿ’Žȱ •˜œȱ Š›Žȱ ˜ȱ ˜—ŽȬ‘Š•ȱ ŠŒ›Žǯȱ ¢ȱ
The effect on value produced by a property's ’œŽ•ǰȱ Šȱ ‘Š•ȬŠŒ›Žȱ •˜ȱ ‘Šœȱ Šȱ ŸŠ•žŽȱ ˜ȱ ǞŗǯŖŖȱ ™Ž›ȱ
location at or near the intersection of two œšžŠ›Žȱ ˜˜ǯȱ
˜ ŽŸŽ›ǰȱ  ‘Ž—ȱ Œ˜–‹’—Žȱ  ’‘ȱ Š—ȱ
streets; the increment of value or loss in
Š“ŠŒŽ—ȱ‘Š•ȬŠŒ›Žȱ•˜ǰȱ‘ŽȱŸŠ•žŽȱ–Š¢ȱ’—Œ›ŽŠœŽȱ˜ȱ
value resulting from this location or proximity.
ǞŗǯśŖȱ™Ž›ȱœšžŠ›Žȱ˜˜ǯȱ‘ŽȱŸŠ•žŽȱ’쎛Ž—ŒŽȱ–Š¢ȱ
‹Žȱ˜ěœŽȱ‹¢ȱ‘Žȱ™›Ž–’ž–ȱŠȱŽŸŽ•˜™Ž›ȱ˜Ž—ȱ‘Šœȱ
˜ȱ ™Š¢ȱ ˜ȱ Œ˜–‹’—Žȱ Š“ŠŒŽ—ȱ ™›˜™Ž›’Žœǰȱ ˜›ȱ ‘Žȱ
assemblage
›ŽŸŽ›œŽȱ–Š¢ȱ˜ŒŒž›ȱ’ȱ‘Žȱ•˜œȱŠ›ŽȱŸŽ›¢ȱ•Š›ŽȱŠ—ȱ
The combining of two or more parcels,
usually but not necessarily contiguous, into ŠœœŽ–‹•ŠŽȱ¢’Ž•œȱŠȱ•˜ Ž›ȱŸŠ•žŽȱ™Ž›ȱœšžŠ›Žȱ˜˜ȱ
one ownership or use; the process that ’—ȱ ‘Žȱ –Š›”Ž™•ŠŒŽȱ žŽȱ ˜ȱ —ŽŠ’ŸŽȱ ŽŒ˜—˜–’Žœȱ
creates plottage value. ˜ȱ œŒŠ•Žǯȱ •˜ĴŠŽȱ ŸŠ•žŽȱ –Š¢ȱ Š•œ˜ȱ Š™™•¢ȱ ˜ȱ Š—ȱ
plottage Ž¡’œ’—ȱ œ’Žȱ ˜ȱ Šȱ œ™ŽŒ’Š•ȱ œ’£Žȱ ˜›ȱ œ‘Š™Žȱ ‘Šȱ ‘Šœȱ
The increment of value created when two ›ŽŠŽ›ȱ ž’•’¢ȱ ‘Š—ȱ –˜›Žȱ Œ˜—ŸŽ—’˜—Š•ǰȱ œ–Š••Ž›ȱ
or more sites are combined to produce •˜œǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ Š—Š•¢£Žœȱ —Ž’‘‹˜ž›’—ȱ
greater utility. •Š—ȱ žœŽœȱ Š—ȱ ŸŠ•žŽœȱ ˜ȱ ŽŽ›–’—Žȱ  ‘Ž‘Ž›ȱ Š—ȱ
Š™™›Š’œŽȱ™›˜™Ž›¢ȱ‘Šœȱ™•˜ĴŠŽȱŸŠ•žŽǯ

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 Chapter 10 – Land and Site Analysis 10.11

•˜ĴŠŽȱ ’œȱ œ’—’ęŒŠ—ȱ ’—ȱ Š™™›Š’œ’—ȱ Š›’Œž•ž›Š•ȱ •Š—ǯȱ ›˜™Ž›’Žœȱ ˜ȱ •ŽœœȬ‘Š—Ȭ
˜™’–ž–ȱ œ’£Žȱ ‘ŠŸŽȱ •˜ Ž›ȱ ž—’ȱ ŸŠ•žŽœȱ ‹ŽŒŠžœŽȱ ‘Ž¢ȱ ŒŠ——˜ȱ œž™™˜›ȱ ‘Žȱ –˜Ž›—ȱ
Žšž’™–Ž—ȱ —ŽŽŽȱ ˜ȱ ™›˜žŒŽȱ –Š¡’–ž–ȱ ™›˜ęœǯȱ —ȱ Š—ȱ ž›‹Š—ȱ Š›ŽŠǰȱ ™•˜ĴŠŽȱ ˜ȱ
Œ˜––Ž›Œ’Š•ȱ˜ĜŒŽȱŠ—ȱ›ŽŠ’•ȱœ’ŽœȱŠ—ȱ˜ȱ›Žœ’Ž—’Š•ȱŠ™Š›–Ž—ȱœ’Žœȱ–Š¢ȱ’—Œ›ŽŠœŽȱ‘Žȱ
ž—’ȱ ŸŠ•žŽœȱ ˜ȱ ‘Žȱ •˜œȱ ŠœœŽ–‹•Žǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ œ˜–Žȱ Œ’’Žœȱ  Š—’—ȱ ˜ȱ Ž—Œ˜ž›ŠŽȱ
•Š›Ž›ȱ–’¡ŽȬžœŽȱŽŸŽ•˜™–Ž—œȱ ’••ȱŽœŠ‹•’œ‘ȱ£˜—’—ȱ™˜•’Œ’Žœȱ‘ŠȱŠ••˜ ȱ‘’‘Ž›ȱŽ—œ’Ȭ
’Žœȱ˜›ȱ•Š›Ž›ȱœ’ŽœǯȱȱŠȱŜŜȬ˜˜ȱ ’Žȱ•˜ȱŒŠ—ȱ˜—•¢ȱŠŒ‘’ŽŸŽȱŠȱŗǯŖȱǰȱ™•˜ĴŠŽȱ ’••ȱŽ¡’œȱ
Š—ȱŽŸŽ•˜™Ž›œȱ ’••ȱŽ—ŽŠŸ˜ž›ȱ˜ȱŠœœŽ–‹•ŽȱŠ“ŠŒŽ—ȱŜŜȬ˜˜ȱ•˜œǯȱ
•‘˜ž‘ȱ‘ŽȱŠœœŽ–‹•ŠŽȱ˜ȱ•Š—ȱ’—˜ȱŠȱœ’£Žȱ‘Šȱ™Ž›–’œȱŠȱ‘’‘Ž›ȱŠ—ȱ‹ŽĴŽ›ȱžœŽȱ
–Š¢ȱ ’—Œ›ŽŠœŽȱ ‘Žȱ •Š—ȇœȱ ž—’ȱ ŸŠ•žŽȱ ǻ˜••Š›œȱ ™Ž›ȱ œšžŠ›Žȱ ˜˜ȱ ˜›ȱ ŠŒ›ŽǼǰȱ ‘Žȱ ›ŽŸŽ›œŽȱ –Š¢ȱ
Š•œ˜ȱ ˜ŒŒž›ǯȱ Š—ȱ ‘Šȱ –žœȱ ‹Žȱ ’Ÿ’Žȱ ˜›ȱ œž‹’Ÿ’Žȱ ˜ȱ ŠŒ‘’ŽŸŽȱ Šȱ ‘’‘Ž›ȱ Š—ȱ ‹ŽĴŽ›ȱ
žœŽȱ ’œȱ Œ˜––˜—•¢ȱ œ˜•ȱ ’—ȱ ‹ž•”ȱ Šȱ Šȱ ™›’ŒŽȱ •Žœœȱ ‘Š—ȱ ‘Žȱ œž–ȱ ˜ȱ ‘Žȱ ›ŽŠ’•ȱ ™›’ŒŽœȱ ˜ȱ ’œȱ
Œ˜–™˜—Ž—œǯȱ‘Žȱ•˜ Ž›ȱž—’ȱ™›’ŒŽȱ˜›ȱ‘Žȱ‹ž•”ȱœŠ•Žȱ›ŽĚŽŒœȱ–Š›”ŽȱŠ••˜ Š—ŒŽœȱ˜›ȱ›’œ”ǰȱ
’–Žǰȱ –Š—ŠŽ–Ž—ǰȱ ŽŸŽ•˜™–Ž—ǰȱ Œ˜œœǰȱ œŠ•Žœȱ Œ˜œœǰȱ ™›˜ęǰȱ Š—ȱ ˜‘Ž›ȱ Œ˜—œ’Ž›Š’˜—œȱ
Šœœ˜Œ’ŠŽȱ ’‘ȱ’Ÿ’’—ȱŠ—ȱ–Š›”Ž’—ȱ‘Žȱ•Š—ǯ

Excess Land and Surplus Land

ȱ ’ŸŽ—ȱ •Š—ȱ žœŽȱ ‘Šœȱ Š—ȱ ˜™’–ž–ȱ ™Š›ŒŽ•ȱ œ’£Žǰȱ Œ˜—ꐞ›Š’˜—ǰȱ Š—ȱ •Š—Ȭ˜Ȭ‹ž’•’—ȱ
›Š’˜ǯȱ—¢ȱŽ¡›Šȱ˜›ȱ›Ž–Š’—’—ȱ•Š—ȱ—˜ȱ—ŽŽŽȱ˜ȱœž™™˜›ȱ‘Žȱœ™ŽŒ’ęŒȱžœŽȱ–Š¢ȱ‘ŠŸŽȱŠȱ
’쎛Ž—ȱŸŠ•žŽȱ‘Š—ȱ‘Žȱ•Š—ȱŠ›ŽŠȱ—ŽŽŽȱ˜ȱœž™™˜›ȱ‘Žȱ’–™›˜ŸŽ–Ž—ǯȱ‘Žȱ™˜›’˜—ȱ˜ȱ
‘Žȱ™›˜™Ž›¢ȱ‘Šȱ›Ž™›ŽœŽ—œȱŠ—ȱ˜™’–Š•ȱœ’Žȱ˜›ȱ‘ŽȱŽ¡’œ’—ȱ’–™›˜ŸŽ–Ž—œȱ ’••ȱ›ŽĚŽŒȱ
Šȱ¢™’ŒŠ•ȱ•Š—Ȭ˜Ȭ‹ž’•’—ȱ›Š’˜ǯȱ‘ŽȱŠ™™›Š’œŽ›ȱŒŠ—ȱ’Ž—’¢ȱŠ—ȱšžŠ—’¢ȱ‘Žȱ•Š—ȱŠ›ŽŠȱ
—ŽŽŽȱ ˜ȱ œž™™˜›ȱ ‘Žȱ Ž¡’œ’—ȱ ˜›ȱ ’ŽŠ•ȱ ’–™›˜ŸŽ–Ž—ǯȱ —¢ȱ ›Ž–Š’—’—ȱ •Š—ȱ Š›ŽŠȱ ’œȱ
Ž’‘Ž›ȱŽ¡ŒŽœœȱ•Š—ȱ˜›ȱœž›™•žœȱ•Š—ǯ
¡ŒŽœœȱ•Š—ȱ’œȱ•Š—ȱ‘Šȱ’œȱ—˜ȱ—ŽŽŽȱ˜ȱœŽ›ŸŽȱ˜›ȱœž™™˜›ȱ‘ŽȱŽ¡’œ’—ȱ˜›ȱ™›˜™˜œŽȱ
’–™›˜ŸŽ–Ž—ǯȱ‘Žȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱ˜ȱ‘ŽȱŽ¡ŒŽœœȱ•Š—ȱ–Š¢ȱ˜›ȱ–Š¢ȱ—˜ȱ‹Žȱ‘ŽȱœŠ–Žȱ
Šœȱ ‘Žȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ ˜ȱ ‘Žȱ ’–™›˜ŸŽȱ
™Š›ŒŽ•ǯȱ ¡ŒŽœœȱ •Š—ȱ ‘Šœȱ ‘Žȱ ™˜Ž—’Š•ȱ ˜ȱ ‹Žȱ œ˜•ȱ
œŽ™Š›ŠŽ•¢ȱŠ—ȱ–žœȱ‹ŽȱŸŠ•žŽȱœŽ™Š›ŠŽ•¢ǯ excess land
Land that is not needed to serve or support
ž›™•žœȱ •Š—ȱ ’œȱ —˜ȱ Œž››Ž—•¢ȱ —ŽŽŽȱ ˜ȱ
the existing improvement. The highest and
œž™™˜›ȱ ‘Žȱ Ž¡’œ’—ȱ ’–™›˜ŸŽ–Ž—ȱ Š—ȱ ŒŠ——˜ȱ
best use of the excess land may or may not
‹Žȱ œŽ™Š›ŠŽȱ ›˜–ȱ ‘Žȱ ™›˜™Ž›¢ȱ Š—ȱ œ˜•ȱ ˜ěǯȱ be the same as the highest and best use of
ž›™•žœȱ •Š—ȱ ˜Žœȱ —˜ȱ ‘ŠŸŽȱ Š—ȱ ’—Ž™Ž—Ž—ȱ the improved parcel. Excess land has the
‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ Š—ȱ –Š¢ȱ ˜›ȱ –Š¢ȱ —˜ȱ potential to be sold separately and must be
Œ˜—›’‹žŽȱŸŠ•žŽȱ˜ȱ‘Žȱ’–™›˜ŸŽȱ™Š›ŒŽ•ǯ valued separately.
œȱ Š—ȱ Ž¡Š–™•Žǰȱ Œ˜—œ’Ž›ȱ Šȱ ›Žœ’Ž—’Š•ȱ
™›˜™Ž›¢ȱ Œ˜–™›’œ’—ȱ Šȱ ˜—ŽȬž—’ȱ ‘˜–Žȱ Š—ȱ
 ˜ȱ œŠ—Š›Ȭœ’£Žȱ •˜œȱ ’—ȱ Šȱ ž••¢ȱ ŽŸŽ•˜™Žȱ surplus land
œž‹’Ÿ’œ’˜—ǯȱ ȱ ‘Žȱ ‘˜žœŽȱ  Šœȱ œ’žŠŽȱ  ’‘’—ȱ Land that is not currently needed to support
‘Žȱ ‹˜ž—Š›’Žœȱ ˜ȱ Šȱ œ’—•Žȱ •˜ȱ Š—ȱ ‘Žȱ —˜›–Š•ȱ the existing improvement but cannot be
•Š—ȱ Š›ŽŠȱ ˜›ȱ ™›˜™Ž›’Žœȱ ’—ȱ ‘Žȱ —Ž’‘‹˜ž›‘˜˜ȱ separated from the property and sold off.
’œȱŠȱœ’—•Žȱ•˜ǰȱ‘Ž—ȱ‘ŽȱœŽŒ˜—ǰȱŸŠŒŠ—ȱ•˜ȱ ˜ž•ȱ Surplus land does not have an independent
highest and best use and may or may not
–˜œȱ •’”Ž•¢ȱ ‹Žȱ Œ˜—œ’Ž›Žȱ Ž¡ŒŽœœȱ •Š—ǰȱ  ‘’Œ‘ȱ
contribute value to the improved parcel.
Œ˜ž•ȱ ‹Žȱ œŽ™Š›ŠŽȱ ›˜–ȱ ‘Žȱ •˜ȱ ˜ȱ ‘Žȱ Ž¡’œ’—ȱ

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 11 10/4/2010 10:35:46 AM

 10.12 The Appraisal of Real Estate – Third Canadian Edition

œ›žŒž›Žȱ˜›ȱžž›ŽȱŽŸŽ•˜™–Ž—ȱ˜ȱ‘Šȱ™Š›ŒŽ•ȇœȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽǯȱȱ•Š—ȱŸŠ•žŽœȱ
’—ȱ ‘Žȱ —Ž’‘‹˜ž›‘˜˜ȱ  Ž›Žȱ ǞŗǯŖŖȱ ™Ž›ȱ œšžŠ›Žȱ ˜˜ǰȱ ‘Ž—ȱ ‘Žȱ Ž¡ŒŽœœȱ •Š—ȱ ’—ȱ ‘’œȱ œ’žȬ
Š’˜—ȱ  ˜ž•ȱ ™›˜‹Š‹•¢ȱ Šȱ ‘Žȱ ž••ȱ ǞŗǯŖŖȱ ™Ž›ȱ œšžŠ›Žȱ ˜˜ȱ ˜ȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ ‘Žȱ œž‹“ŽŒȱ
™›˜™Ž›¢ǰȱ’ǯŽǯǰȱ‘Žȱ‘˜žœŽȱŠ—ȱ‘Žȱ ˜ȱ•˜œǯȱȱ‘Žȱ¢™’ŒŠ•ȱ•Š—ȱŠ›ŽŠȱ˜›ȱ™›˜™Ž›’Žœȱ’—ȱ‘Žȱ
—Ž’‘‹˜ž›‘˜˜ȱ  Ž›Žȱ Šȱ ˜ž‹•Žȱ •˜ǰȱ ›ŽŠ›•Žœœȱ ˜ȱ ‹ž’•’—ȱ ™•ŠŒŽ–Ž—ǰȱ ‘Ž—ȱ ‘Žȱ œŠ–Žȱ
™›˜™Ž›¢ȱ ˜ž•ȱ‘ŠŸŽȱ—Ž’‘Ž›ȱŽ¡ŒŽœœȱ•Š—ȱ—˜›ȱœž›™•žœȱ•Š—ǯ
˜ ȱ Œ˜—œ’Ž›ȱ Š—ȱ ’—žœ›’Š•ȱ ™Š›”ȱ  ‘Ž›Žȱ ̘˜›ȱ œ™ŠŒŽȱ ›Š’˜œȱ ˜›ȱ  Š›Ž‘˜žœŽȱ ™›˜™Ȭ
Ž›’Žœȱ ›Š—Žȱ ›˜–ȱ ŖǯŘŞȱ ˜ȱ Ŗǯřśȱ Š—ȱ •Š—ȱ ŸŠ•žŽȱ ’œȱ ǞŘǯŖŖȱ ™Ž›ȱ œšžŠ›Žȱ ˜˜ǯȱ ‘Žȱ œž‹“ŽŒȱ
™›˜™Ž›¢ȱ’œȱŠȱŘŖǰŖŖŖȱœšžŠ›Žȱ˜˜ȱ Š›Ž‘˜žœŽȱ˜—ȱŠȱŗŖŖǰŖŖŖȱœšžŠ›Žȱ˜˜ȱœ’Žǰȱ ‘’Œ‘ȱ›Žœž•œȱ
’—ȱ ̘˜›ȱ œ™ŠŒŽȱ ›Š’˜ȱ ˜ȱ ŖǯŘŖǰȱ  Ž••ȱ ‹Ž•˜ ȱ ‘Žȱ –Š›”Žȱ Š›ŽŠȱ —˜›–ǯȱ ȱ ‘Žȱ Š’’˜—Š•ȱ •Š—ȱ
—˜ȱ —ŽŽŽȱ ˜ȱ œž™™˜›ȱ ‘Žȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽȱ ˜ȱ ‘Žȱ Ž¡’œ’—ȱ ™›˜™Ž›¢ȱ  Ž›Žȱ ’—ȱ ‘Žȱ
‹ŠŒ”ȱ ™˜›’˜—ȱ ˜ȱ ‘Žȱ œ’Žǰȱ •ŠŒ”’—ȱ ŠŒŒŽœœȱ ˜ȱ ‘Žȱ œ›ŽŽǰȱ ‘Šȱ •Š—ȱ  ˜ž•ȱ ™›˜‹Š‹•¢ȱ ‹Žȱ
Œ˜—œ’Ž›Žȱœž›™•žœȱ•Š—ȱ‹ŽŒŠžœŽȱ’ȱŒ˜ž•ȱ—˜ȱ‹ŽȱœŽ™Š›ŠŽȱ›˜–ȱ‘Žȱœ’ŽȱŠ—ȱ˜Žœȱ—˜ȱ
‘ŠŸŽȱ Š—ȱ ’—Ž™Ž—Ž—ȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽǯȱ —ȱ ‘’œȱ œ’žŠ’˜—ǰȱ ‘Žȱ œž›™•žœȱ •Š—ȱ  ˜ž•ȱ
™›˜‹Š‹•¢ȱ œ’••ȱ Œ˜—›’‹žŽȱ ™˜œ’’ŸŽ•¢ȱ ˜ȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ ‘Žȱ œž‹“ŽŒȱ ™›˜™Ž›¢ȱ ǻ‹ŽŒŠžœŽȱ ‘Žȱ
Ž¡’œ’—ȱ ’–™›˜ŸŽ–Ž—œȱ Œ˜ž•ȱ œ’••ȱ ‹Žȱ Ž¡™Š—Žȱ ˜—˜ȱ ‘Žȱ œž›™•žœȱ •Š—Ǽǰȱ ‹žȱ ’ȱ  ˜ž•ȱ
–˜œȱ•’”Ž•¢ȱ‹Žȱ ˜›‘ȱ•Žœœȱ‘Š—ȱ‘ŽȱǞŘǯŖŖȱ™Ž›ȱœšžŠ›Žȱ˜˜ȱ™›’ŒŽȱŒ˜––Š—Žȱ‹¢ȱŸŠŒŠ—ȱ
•Š—ȱŽ•œŽ ‘Ž›Žȱ’—ȱ‘Žȱ’—žœ›’Š•ȱ™Š›”ǯȱ

Topography
˜™˜›Š™‘’ŒŠ•ȱ œž’Žœȱ ™›˜Ÿ’Žȱ ’—˜›–Š’˜—ȱ Š‹˜žȱ •Š—ȇœȱ Œ˜—˜ž›ǰȱ ›Š’—ǰȱ —Šž›Š•ȱ
›Š’—ŠŽǰȱ œ˜’•ȱ Œ˜—’’˜—œǰȱ Ÿ’Ž ǰȱ Š—ȱ Ž—Ž›Š•ȱ ™‘¢œ’ŒŠ•ȱ žœŽž•—Žœœǯȱ ’Žœȱ –Š¢ȱ ’쎛ȱ
’—ȱ ŸŠ•žŽȱ žŽȱ ˜ȱ ‘ŽœŽȱ ™‘¢œ’ŒŠ•ȱ Œ‘Š›ŠŒŽ›’œ’Œœǯȱ ŽŽ™ȱ œ•˜™Žœȱ ˜Ž—ȱ ’–™ŽŽȱ ‹ž’•’—ȱ
Œ˜—œ›žŒ’˜—ǯȱŠž›Š•ȱ›Š’—ŠŽȱŒŠ—ȱ‹ŽȱŠŸŠ—ŠŽ˜žœǰȱ˜›ǰȱ’ȱŠȱœ’Žȱ’œȱ˜ —œ›ŽŠ–ȱ›˜–ȱ
˜‘Ž›ȱ ™›˜™Ž›’Žœȱ ˜›ȱ ’œȱ Šȱ —Šž›Š•ȱ ›Š’—ŠŽȱ ‹Šœ’—ȱ ˜›ȱ ‘Žȱ Š›ŽŠǰȱ ’ȱ –Š¢ȱ ‘ŠŸŽȱ œŽŸŽ›Ž•¢ȱ
•’–’Žȱ žœŽž•—Žœœǯȱ ŽšžŠŽȱ ›Š’—ŠŽȱ œ¢œŽ–œȱ ŒŠ—ȱ ˜œŽȱ ‘Žȱ ˜™˜›Š™‘’Œȱ Š—ȱ
›Š’—ŠŽȱ ™›˜‹•Ž–œȱ ‘Šȱ  ˜ž•ȱ ˜‘Ž› ’œŽȱ ’—‘’‹’ȱ ‘Žȱ ŽŸŽ•˜™–Ž—ȱ ˜ȱ œžŒ‘ȱ Šȱ œ’Žǯȱ
™•Š—ȱ •Š—ȱ Š›ŽŠȱ ǻ’ǯŽǯǰȱ •Š—ȱ Š‹˜ŸŽȱ ‘Žȱ –ŽŠ—ȱ ‘’‘ȱ  ŠŽ›ȱ •’—ŽǼȱ Š—ȱ •Š—ȱ  ’‘ȱ ˜˜ȱ
›Š’—ŠŽȱŒŠ—ȱ¢™’ŒŠ••¢ȱœž™™˜›ȱžœŽœȱ‘ŠȱŠ›Žȱ–˜›Žȱ’—Ž—œ’ŸŽǯ
—ȱ ŽœŒ›’‹’—ȱ ˜™˜›Š™‘¢ǰȱ Š—ȱ Š™™›Š’œŽ›ȱ –žœȱ
Topographical characteristics, surface Ž–™•˜¢ȱ ‘Žȱ Ž›–’—˜•˜¢ȱ žœŽȱ ’—ȱ ‘Žȱ Š›ŽŠǯȱ ‘Šȱ ’œȱ
soil and subsoil quality, grade, ŽœŒ›’‹Žȱ Šœȱ Šȱ œŽŽ™ȱ ‘’••ȱ ’—ȱ ˜—Žȱ ™Š›ȱ ˜ȱ ‘Žȱ Œ˜ž—›¢ȱ
drainage, and the bearing capacity of –Š¢ȱ‹ŽȱŒ˜—œ’Ž›ŽȱŠȱ–˜Ž›ŠŽȱœ•˜™Žȱ’—ȱŠ—˜‘Ž›ǯȱ—ȱ
the soil determine the suitability of a œ˜–Žȱ ’—œŠ—ŒŽœǰȱ ŽœŒ›’™’˜—œȱ ˜ȱ Šȱ ™›˜™Ž›¢ȇœȱ ˜™˜Ȭ
land parcel for an agricultural use or a
›Š™‘¢ȱ –Š¢ȱ ‹Žȱ Š”Ž—ȱ ›˜–ȱ ™ž‹•’œ‘Žȱ œ˜ž›ŒŽœȱ œžŒ‘ȱ
proposed improvement.
Šœȱ˜™˜›Š™‘’Œȱ–Š™œȱǻœŽŽȱ’ž›ŽȱŗŖǯŗǼǯ

Geodetic Survey Program

˜™˜›Š™‘’Œȱ –Š™œȱ ™›Ž™Š›Žȱ ž—Ž›ȱ ‘Žȱ ’›ŽŒ’˜—ȱ ˜ȱ ‘Žȱ Ž˜Ž’Œȱ ž›ŸŽ¢ȱ ’Ÿ’œ’˜—ȱ
˜ȱ Šž›Š•ȱ Žœ˜ž›ŒŽœȱ Š—ŠŠȱ Š›Žȱ ›ŽŽ››Žȱ ˜ȱ Šœȱ šžŠ›Š—•Žœȱ ˜›ȱ šžŠœȱ ‘Ž¢ȱ ™›˜Ÿ’Žȱ
’—˜›–Š’˜—ȱ ‘Šȱ ’œȱ žœŽž•ȱ ’—ȱ •Š—ȱ ŽœŒ›’™’˜—œȱ ǻœŽŽȱ ’ž›Žȱ ŗŖǯŘǼǯȱ ŠœŽȱ •’—Žœǰȱ ™›’—Œ’™Š•ȱ
–Ž›’’Š—œǰȱ Š—ȱ ˜ —œ‘’™ȱ •’—Žœȱ Š›Žȱ œ‘˜ —ȱ Š•˜—ȱ  ’‘ȱ ˜™˜›Š™‘’Œȱ Š—ȱ –Š—Ȭ–ŠŽȱ
ŽŠž›Žœǯȱ ‘Žȱ ˜™˜›Š™‘’Œȱ ŽŠž›Žœȱ Œ˜––˜—•¢ȱ Ž™’ŒŽȱ ˜—ȱ ‘ŽœŽȱ –Š™œȱ ’—Œ•žŽȱ •Š—ȱ
Ž•ŽŸŠ’˜—œȱ ǻ›Ž™›ŽœŽ—Žȱ ‹¢ȱ Œ˜—˜ž›ȱ •’—Žœȱ Šȱ œ™ŽŒ’ꮍȱ ’—Ž›ŸŠ•œǼǰȱ ›’ŸŽ›œǰȱ •Š”Žœǰȱ ’—Ž›Ȭ

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 Chapter 10 – Land and Site Analysis 10.13

Figure 10.1: Topographic Map

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 10.14 The Appraisal of Real Estate – Third Canadian Edition

WHERE TO FIND – TOPOGRAPHIC MAPS

Topographic maps are available at most local and regional government offices and their websites.
The Centre for Topographic Information produces topographic maps of Canada at scales of 1:50,000
and 1:250,000. They are known as the National Topographic System (NTS). A government proposal
to discontinue publishing of all hardcopy or paper topographic maps in favor of digital-only mapping
data was shelved in 2006 after intense public opposition. National Resources Canada maintains the
centre, and makes topographic maps and data available in print from regional offices and on the web.
For more information, see: www.nrcan.gc.ca. Topographic and other maps are available online at
atlas.nrcan.gc.ca/site/english/maps/topo/index.html

–’ĴŽ—ȱ œ›ŽŠ–œȱ Š—ȱ ˜‘Ž›ȱ ‹˜’Žœȱ ˜ȱ  ŠŽ›ǰȱ ™˜˜›•¢ȱ ›Š’—Žȱ Š›ŽŠœǰȱ Š—ȱ ˜›Žœǯȱ ‘Žȱ
–Š—Ȭ–ŠŽȱ ŽŠž›Žœȱ ’Ž—’ꮍȱ ’—Œ•žŽȱ ’–™›˜ŸŽȱ Š—ȱ ž—’–™›˜ŸŽȱ ›˜Šœǰȱ ‘’‘ Š¢œǰȱ
‹›’Žœǰȱ ™˜ Ž›ȱ ›Š—œ–’œœ’˜—ȱ •’—Žœǰȱ •ŽŸŽŽœǰȱ ›Š’•›˜Šœǰȱ Š’›™˜›œǰȱ Œ‘ž›Œ‘Žœǰȱ œŒ‘˜˜•œǰȱ Š—ȱ
˜‘Ž›ȱ‹ž’•’—œǯȱžŠ›Š—•Žȱ–Š™œȱŠ•œ˜ȱœ‘˜ ȱœž›ŠŒŽȱŽ˜•˜¢ǯȱ

Soil Analysis
ž›ŠŒŽȱ œ˜’•ȱ Š—ȱ œž‹œ˜’•ȱ Œ˜—’’˜—œȱ Š›Žȱ ’–™˜›Š—ȱ ˜›ȱ ‹˜‘ȱ ’–™›˜ŸŽȱ ™›˜™Ž›’Žœȱ Š—ȱ
Š›’Œž•ž›Š•ȱ •Š—ǯȱ ȱ œ˜’•ȇœȱ œž’Š‹’•’¢ȱ ˜›ȱ ‹ž’•’—ȱ ˜›ȱ ˜›ȱ ŠŒŒ˜––˜Š’—ȱ Šȱ œŽ™’Œȱ
œ¢œŽ–ȱ’œȱ’–™˜›Š—ȱ˜›ȱŠ••ȱ¢™Žœȱ˜ȱ’–™›˜ŸŽȱ™›˜™Ž›¢ǰȱŠ—ȱ’ȱ’œȱŠȱ–Š“˜›ȱŒ˜—œ’Ž›Š’˜—ȱ
 ‘Ž—ȱ‘ŽȱŒ˜—œ›žŒ’˜—ȱ˜ȱ•Š›Žǰȱ‘ŽŠŸ¢ȱ‹ž’•’—œȱ’œȱ‹Ž’—ȱŒ˜—Ž–™•ŠŽǯȱ‘Žȱ—ŽŽȱ˜›ȱ
œ™ŽŒ’Š•ȱ™’•’—œȱ˜›ȱ̘Š’—ȱ˜ž—Š’˜—œȱ‘ŠœȱŠȱ–Š“˜›ȱ’–™ŠŒȱ˜—ȱ‘ŽȱŠŠ™Š‹’•’¢ȱ˜ȱŠȱœ’Žȱ
˜›ȱ Šȱ ™Š›’Œž•Š›ȱ žœŽǯȱ ˜’•ȱ Œ˜—’’˜—œȱ ŠěŽŒȱ ‘Žȱ Œ˜œȱ ˜ȱ ŽŸŽ•˜™–Ž—ȱ Š—ȱ ‘Ž›Ž˜›Žȱ ‘Žȱ
™›˜™Ž›¢ȱŸŠ•žŽǯ
›˜—˜–’œœȱ Š—ȱ œ˜’•ȱ œŒ’Ž—’œœȱ –ŽŠœž›Žȱ ‘Žȱ Š›’Œž•ž›Š•ȱ šžŠ•’’Žœȱ ˜ȱ œ˜’•ȱ Š—ȱ
ŒŠ™ŠŒ’¢ȱ˜ȱœ˜’•ȱ˜›ȱœ™ŽŒ’ęŒȱŠ›’Œž•ž›Š•ȱžœŽœǯȱ—’—ŽŽ›œȱ›Š’—Žȱ’—ȱœ˜’•ȱ–ŽŒ‘Š—’ŒœȱŽœȱ
˜›ȱœ˜’•ȱŒ˜—œ’œŽ—Œ¢ȱŠ—ȱ•˜ŠȬ‹ŽŠ›’—ȱŒŠ™ŠŒ’¢ǯȱ˜ŒŠ•ȱ‹ž’•Ž›œǰȱŽŸŽ•˜™Ž›œǰȱŠ—ȱ˜‘Ž›œȱ
›ŽšžŽ—•¢ȱ”—˜ ȱœž‹œ˜’•ȱŒ˜—’’˜—œǰȱ‹žȱ’ȱ‘Ž›Žȱ’œȱŠ—¢ȱ˜ž‹ȱŠ‹˜žȱ‘Žȱœ˜’•ȇœȱ‹ŽŠ›’—ȱ
ŒŠ™ŠŒ’¢ǰȱ ‘Žȱ Œ•’Ž—ȱ œ‘˜ž•ȱ ‹Žȱ ’—˜›–Žȱ ˜ȱ ‘Žȱ —ŽŽȱ ˜›ȱ œ˜’•ȱ œž’Žœǯȱ••ȱ ˜ž‹œȱ –žœȱ
‹Žȱ›Žœ˜•ŸŽȱ‹Ž˜›Žȱ‘Žȱ•Š—ȇœȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽȱŒŠ—ȱ‹ŽȱœžŒŒŽœœž••¢ȱŠ—Š•¢£Žǰȱ˜›ȱŠȱ
ŽœŒ›’™’˜—ȱ˜ȱŠ—¢ȱœ™ŽŒ’Š•ȱŠœœž–™’˜—œȱ–žœȱ‹Žȱ’—Œ•žŽȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ȱ›Ž™˜›ǯ

WHERE TO FIND – SOILS DATA

Soils surveys conducted by Agriculture and Agri-Food Canada in aggregate are called the National Soil
Database (NSDB). The NSDB is the set of computer readable files which contain soil, landscape, and
climatic data for all of Canada. It serves as the national archive for land resources information that was
collected by federal and provincial field surveys, or created by land data analysis projects.
For more information, see www.agr.gc.ca

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 Chapter 10 – Land and Site Analysis 10.15

Figure 10.2: US Department of the Interior Geological Survey

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 10.16 The Appraisal of Real Estate – Third Canadian Edition

Floodplain and Wetlands Analysis

Ž•Š—œȱ Š›Žȱ •Š—œȱ ‘Šȱ Š›Žȱ œŽŠœ˜—Š••¢ȱ ˜›ȱ ™Ž›–Š—Ž—•¢ȱ Œ˜ŸŽ›Žȱ ‹¢ȱ œ‘Š••˜ ȱ  ŠŽ›ǰȱ
’—Œ•ž’—ȱ •Š—œȱ  ‘Ž›Žȱ ‘Žȱ  ŠŽ›ȱ Š‹•Žȱ ’œȱ Šȱ ˜›ȱ Œ•˜œŽȱ ˜ȱ ‘Žȱ œž›ŠŒŽǯȱ ‘Žȱ ™›ŽœŽ—ŒŽȱ ˜ȱ
Š‹ž—Š—ȱ  ŠŽ›ȱ ŒŠžœŽœȱ ‘Žȱ ˜›–Š’˜—ȱ ˜ȱ ‘¢›’Œȱ œ˜’•œȱ ǻ•ŠŒ”’—ȱ Š’›Ǽȱ Š—ȱ ŠŸ˜ž›œȱ ‘Žȱ
˜–’—Š—ŒŽȱ˜ȱŽ’‘Ž›ȱ‘¢›˜™‘¢’Œȱ™•Š—œȱǻŠŠ™Žȱ˜ȱŠšžŠ’ŒȱŽ—Ÿ’›˜—–Ž—œǼȱ˜›ȱ ŠŽ›Ȭ
˜•Ž›Š—ȱ™•Š—œǯȱŽ•Š—œȱŠ›ŽȱŒ‘Š›ŠŒŽ›’£Žȱ‹¢ȱ™•Š—œȱŠŠ™Žȱ˜ȱœŠž›ŠŽȬœ˜’•ȱŒ˜—’Ȭ
’˜—œǯȱ‘Žȱ꟎ȱ–Š“˜›ȱ¢™Žœȱ˜ȱ Ž•Š—œȱŠ›Žȱ–Š›œ‘Žœǰȱœ Š–™œǰȱ‹˜œǰȱŽ—œǰȱŠ—ȱœ‘Š••˜ ȱ
˜™Ž—ȱ ŠŽ›œǯ
Ž•Š—œȱŠ›Žȱ‘Žȱ˜—•¢ȱŽŒ˜œ¢œŽ–ȱŽœ’—ŠŽȱ˜›ȱŒ˜—œŽ›ŸŠ’˜—ȱ‹¢ȱ’—Ž›—Š’˜—Š•ȱ
Œ˜—ŸŽ—’˜—ȱ ‹ŽŒŠžœŽȱ ‘Ž¢ȱ Š‹œ˜›‹ȱ ‘Žȱ ’–™ŠŒȱ ˜ȱ ‘¢›˜•˜’Œȱ ŽŸŽ—œǰȱ ’•Ž›ȱ œŽ’–Ž—œȱ
Š—ȱ ˜¡’Œȱ œž‹œŠ—ŒŽœǰȱ œž™™•¢ȱ ˜˜ȱ Š—ȱ ŽœœŽ—’Š•ȱ ‘Š‹’Šȱ ˜›ȱ –Š—¢ȱ œ™ŽŒ’Žœǰȱ ™›˜Ÿ’Žȱ
™›˜žŒœȱ ˜›ȱ ˜˜ǰȱ Ž—Ž›¢ǰȱ Š—ȱ ‹ž’•’—ȱ –ŠŽ›’Š•ǰȱ Š—ȱ Š›Žȱ ŸŠ•žŠ‹•Žȱ ›ŽŒ›ŽŠ’˜—Š•ȱ
Š›ŽŠœǯȱ ˜–Žȱ  Ž•Š—œȱ ‘Ž•™ȱ ›ŽŒ‘Š›Žȱ ›˜ž— ŠŽ›ǰȱ  ‘’•Žȱ ˜‘Ž›œȱ ›ŽŒŽ’ŸŽȱ ›˜ž— ŠȬ
Ž›ȱ ’œŒ‘Š›Žǯȱ Ž•Š—œȱ Š›Žȱ Ÿž•—Ž›Š‹•Žȱ ˜ȱ Œ•’–Š’Œȱ ŸŠ›’Š’˜—œȱ Š—ȱ Ž¡›Ž–Žȱ ŽŸŽ—œǯȱ

Figure 10.3: Floodplain Map

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 Chapter 10 – Land and Site Analysis 10.17

Ž•Š—œȱ ˜ŒŒž›ȱ ŠŒ›˜œœȱ –˜œȱ ˜ȱ Š—ŠŠDzȱ ‘Ž’›ȱ

•˜ŒŠ’˜—ȱžœžŠ••¢ȱŽ™Ž—œȱ˜—ȱ•˜ŒŠ•ȱŠŒ˜›œȱœžŒ‘ȱŠœȱ floodplain
›Š’—ŠŽǰȱ˜™˜›Š™‘¢ǰȱŠ—ȱœž›ŠŒŽȱ–ŠŽ›’Š•ǯ The flat surfaces along the courses of
‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ Œ‘ŽŒ”ȱ ̘˜™•Š’—ȱ –Š™œȱ rivers, streams, and other bodies of water
™›Ž™Š›Žȱ ‹¢ȱ •˜ŒŠ•ȱ ˜ŸŽ›—–Ž—œȱ Š—ȱ ›ŽŸ’Ž ȱ Š—¢ȱ that are subject to flooding.
ŠŸŠ’•Š‹•Žȱœž›ŸŽ¢œȱ˜›ȱ˜™˜›Š™‘’ŒŠ•ȱŠŠȱ™›˜Ÿ’Žȱ wetlands
‹¢ȱ ‘Žȱ Œ•’Ž—ǯȱ ›˜¡’–’¢ȱ ˜ȱ Š—¢ȱ ̘˜ȱ £˜—Žœȱ –Š¢ȱ Areas that are frequently inundated or
saturated by surface or groundwater and
‹Žȱ ŽŽ›–’—Žȱ ‹¢ȱ œž¢’—ȱ –Š™œȱ ™ž‹•’œ‘Žȱ ‹¢ȱ
support vegetation typically adapted for
™›˜Ÿ’—Œ’Š•ȱ Š—ȱ Ž››’˜›’Š•ȱ ŠŽ—Œ’Žœǰȱ ™ž›œžŠ—ȱ
life in saturated soil conditions; generally
˜ȱ ŽŽ›Š•Ȭ™›˜Ÿ’—Œ’Š•ȱ Š›ŽŽ–Ž—œȱ ‘Šȱ ™›˜Ÿ’Žȱ include swamps, marshes, bogs, and
˜›ȱ ‘Žȱ –Š™™’—ȱ ˜ȱ ̘˜™•Š’—œǯȱ —˜›–Š’˜—ȱ ’œȱ similar areas, but classification may differ
ŠŸŠ’•Š‹•Žȱ ‘›˜ž‘ȱ —Ÿ’›˜—–Ž—ȱ Š—ŠŠǰȱ Š—ȱ ‘Žȱ in various jurisdictions.
›Ž•ŽŸŠ—ȱ™›˜Ÿ’—Œ’Š•ȱŠ—ȱŽ››’˜›’Š•ȱŠŽ—Œ¢ǯȱ
‘Žȱ Žę—’’˜—ȱ ˜ȱ  ‘Šȱ Œ˜—œ’žŽœȱ Šȱ  Ž•Š—ȱ
ŸŠ›’Žœǯȱ ˜œȱ •Š œȱ ŽœŒ›’‹Žȱ  Ž•Š—œȱ ’—ȱ Ž›–œȱ ˜ȱ
‘›ŽŽȱ™˜œœ’‹•ŽȱŒ‘Š›ŠŒŽ›’œ’ŒœDZ
ŗǯȱ ˜’•œ
Řǯȱ
¢›˜•˜¢ǰȱ’ǯŽǯǰȱ‘Žȱœž¢ȱ˜ȱ–˜ŸŽ–Ž—ǰȱ’œ›’‹ž’˜—ǰȱŠ—ȱšžŠ•’¢ȱ˜ȱ ŠŽ›
řǯȱ ŽŽŠ’˜—
‘Ž›Žȱ’œȱ—˜ȱœ™ŽŒ’ęŒȱ Ž•Š—œȱ•Ž’œ•Š’˜—ȱ’—ȱŠ—ŠŠǯȱŽ•Š—œȱ›ŽŒŽ’ŸŽȱ’—’›ŽŒȱ™›˜ŽŒȬ
’˜—ȱ ‘›˜ž‘ȱ Šȱ ŸŠ›’Ž¢ȱ ˜ȱ —Š’˜—Š•ǰȱ ™›˜Ÿ’—Œ’Š•ǰȱ Š—ȱ Ž››’˜›’Š•ȱ •Ž’œ•Š’˜—ǰȱ ˜›ȱ Ž¡Š–™•Žȱ
œŽŽȱ‘ŽȱŽŽ›Š•ȱ’œ‘Ž›’ŽœȱŒǯ
 Š–™œǰȱ‹˜œǰȱŽ—œǰȱ–Š›œ‘ŽœȱŠ—ȱŽœžŠ›’ŽœȱŠ›Žȱœž‹“ŽŒȱ˜ȱŸŠ›¢’—ȱŽ›ŽŽœȱ˜ȱ’—ĚžȬ
Ž—ŒŽȱ ›˜–ȱ •˜ŒŠ•ǰȱ ™›˜Ÿ’—Œ’Š•ǰȱ Š—ȱ ŽŽ›Š•ȱ ˜ŸŽ›—–Ž—œǯȱ ˜ȱ ŸŠ•žŽȱ  Ž•Š—œǰȱ Š™™›Š’œŽ›œȱ
–žœȱ ž—Ž›œŠ—ȱ ‘Žȱ ž—’šžŽȱ ŽŠž›Žœȱ ˜ȱ ‘Žȱ •Š—ǰȱ ‘Žȱ ŽŸ˜•Ÿ’—ȱ •Š œȱ ™›˜ŽŒ’—ȱ
‘ŽœŽȱ Š›ŽŠœǰȱ ‘Žȱ —’Œ‘Žȱ –Š›”Žȱ ˜›ȱ œžŒ‘ȱ ™›˜™Ž›’Žœǰȱ Š—ȱ ‘Žȱ ™›˜™Ž›ȱ Š™™•’ŒŠ’˜—ȱ ˜ȱ ‘Žȱ
Š™™›˜ŠŒ‘Žœȱ˜ȱŸŠ•žŽǯ

WHERE TO FIND – FLOODPLAIN MAPS

National Resources Canada publishes maps of wetlands; local, territorial, and provincial agencies often
adapt this data for local wetland mapping and GIS systems.
For more information, see: www.atlas.nrcan.gc.ca/site/english/maps/freshwater/distribution/wetlands

Utilities
—ȱŠ™™›Š’œŽ›ȱ’—ŸŽœ’ŠŽœȱŠ••ȱ‘Žȱž’•’’ŽœȱŠ—ȱœŽ›Ÿ’ŒŽœȱŠŸŠ’•Š‹•Žȱ˜ȱŠȱœ’ŽǯȱěȬœ’Žȱž’•’Ȭ
’Žœȱ–Š¢ȱ‹Žȱ™ž‹•’Œ•¢ȱ˜›ȱ™›’ŸŠŽ•¢ȱ˜™Ž›ŠŽǰȱ˜›ȱ‘Ž›Žȱ–Š¢ȱ‹ŽȱŠȱ—ŽŽȱ˜›ȱ˜—Ȭœ’Žȱž’•’¢ȱ
œ¢œŽ–œȱœžŒ‘ȱŠœȱœŽ™’ŒȱŠ—”œȱŠ—ȱ™›’ŸŠŽȱ ŠŽ›ȱ Ž••œǯȱ‘Žȱ–Š“˜›ȱž’•’’Žœȱ˜ȱ‹ŽȱŒ˜—œ’Ȭ
Ž›Žȱ’—Œ•žŽȱ‘Žȱ˜••˜ ’—DZ
yȱ Š—’Š›¢ȱœŽ Ž›œ
yȱ ˜–Žœ’Œȱ ŠŽ›ǰȱ’ǯŽǯǰȱ™˜Š‹•Žȱ ŠŽ›ǰȱ˜›ȱ‘ž–Š—ȱŒ˜—œž–™’˜—
yȱ ¢™Žœȱ˜ȱ›Š ȱ ŠŽ›ȱ˜›ȱŒ˜––Ž›Œ’Š•ǰȱ’—žœ›’Š•ǰȱŠ—ȱŠ›’Œž•ž›Š•ȱžœŽœ
yȱ Šž›Š•ȱŠœ

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 10.18 The Appraisal of Real Estate – Third Canadian Edition

yȱ •ŽŒ›’Œ’¢
yȱ ˜›–ȱ›Š’—ŠŽȦœŽ Ž›
yȱ Ž•Ž™‘˜—ŽȱœŽ›Ÿ’ŒŽ
yȱ Š‹•ŽȱŽ•ŽŸ’œ’˜—
•‘˜ž‘ȱ–Š›”ŽȱŠ›ŽŠȱŠ—Š•¢œ’œȱŽœŒ›’‹Žœǰȱ’—ȱŽ—Ž›Š•ǰȱ‘Žȱž’•’¢ȱœ¢œŽ–œȱ‘ŠȱŠ›ŽȱŠŸŠ’•Ȭ
Š‹•Žȱ’—ȱŠ—ȱŠ›ŽŠǰȱŠȱœ’ŽȱŠ—Š•¢œ’œȱœ‘˜ž•ȱ™›˜Ÿ’ŽȱŠȱŽŠ’•ŽȱŽœŒ›’™’˜—ȱ˜ȱ‘Žȱž’•’’Žœȱ‘Šȱ
Š›Žȱ ŠŸŠ’•Š‹•Žȱ ˜ȱ ‘Žȱ Š™™›Š’œŽȱ œ’Žǯȱ —ȱ Š™™›Š’œŽ›ȱ
œ‘˜ž•ȱ ŽŽ›–’—Žȱ ‘Žȱ •˜ŒŠ’˜—ȱ Š—ȱ ŒŠ™ŠŒ’¢ȱ ˜ȱ
The cost of installing utilities is considered
‘Žȱž’•’’ŽœȱŠ—ȱ—˜ŽȱŠ—¢ȱž—žœžŠ••¢ȱ‘’‘ȱŒ˜——ŽŒȬ
in the highest and best use conclusion and
’˜—ȱ ŽŽœǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ Š•œ˜ȱ ’Ž—’¢ȱ Š—ȱ
may be reflected directly or indirectly in
the analysis, depending on the selection
Š—Š•¢£ŽȱŠ¢™’ŒŠ••¢ȱ‘’‘ȱ˜›ȱ•˜ ȱœŽ›Ÿ’ŒŽȱŒ˜œœǯȱȱ’œȱ
of comparable sales used in the valuation. —˜ȱ œžĜŒ’Ž—ȱ œ’–™•¢ȱ ˜ȱ ŽœŠ‹•’œ‘ȱ  ‘’Œ‘ȱ ž’•’’Žœȱ
Š›Žȱ ŠŸŠ’•Š‹•Žǯȱ —¢ȱ •’–’Š’˜—œȱ ›Žœž•’—ȱ ›˜–ȱ Šȱ
•ŠŒ”ȱ˜ȱž’•’’ŽœȱŠ›Žȱ’–™˜›Š—ȱ’—ȱ‘’‘ŽœȱŠ—ȱ‹Žœȱ
žœŽȱŠ—Š•¢œ’œǰȱŠ—ȱ‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱ’—ŸŽœ’ŠŽȱŠ••ȱŠŸŠ’•Š‹•ŽǰȱŠ•Ž›—Š’ŸŽȱœ˜ž›ŒŽœȱ˜ȱ
ž’•’¢ȱœŽ›Ÿ’ŒŽǯ
‘ŽȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱŠ•œ˜ȱŒ˜—œ’Ž›ȱ‘Žȱ›ŠŽœȱ˜›ȱž’•’¢ȱœŽ›Ÿ’ŒŽȱŠ—ȱ‘Žȱ‹ž›Ž—ȱ˜ȱ
Š—¢ȱ‹˜—Žȱ’—Ž‹Ž—Žœœȱ˜›ȱ˜‘Ž›ȱœ™ŽŒ’Š•ȱž’•’¢ȱŒ˜œœǯȱȱ™Š›’Œž•Š›ȱŒ˜—ŒŽ›—ȱ˜ȱ›Žœ’Ȭ
Ž—’Š•ǰȱŒ˜––Ž›Œ’Š•ǰȱŠ—ȱ’—žœ›’Š•ȱžœŽ›œȱŠ›Žȱ‘Žȱ˜••˜ ’—DZ
yȱ žŠ•’¢ȱŠ—ȱšžŠ—’¢ȱ˜ȱ ŠŽ›ȱŠ—ȱ’œȱŒ˜œ
yȱ ˜œœȱŠ—ȱŽ™Ž—Š‹’•’¢ȱ˜ȱŽ—Ž›¢ȱœ˜ž›ŒŽœ
yȱ ŽšžŠŒ¢ȱ˜ȱœŽ Ž›ȱŠŒ’•’’Žœ
yȱ —¢ȱœ™ŽŒ’Š•ȱž’•’¢ȱŒ˜œœȱ˜›ȱœž›Œ‘Š›Žœȱ‘Šȱ–’‘ȱŠ™™•¢ȱ˜ȱŒŽ›Š’—ȱ‹žœ’—ŽœœŽœ
yȱ –™ŠŒȱ˜ȱœ™ŽŒ’Š•ȱ˜›ȱ•˜ŒŠ•ȱ’–™›˜ŸŽ–Ž—ȱ’œ›’Œœȱǻœȱ˜›ȱœǼȱ˜—ȱŠ¡ȱ›ŠŽȱ
Š—ȱ›Ž™Š¢–Ž—ȱ–Ž‘˜œǰȱŽǯǯǰȱœ™ŽŒ’Š•ȱŠœœŽœœ–Ž—

WHERE TO FIND – DATA ON UTILITIES

Accurate information on public utilities can be obtained from:

Ȋ Local public works departments Ȋ Local public works departments
Ȋ Providers of on-site water and sewage disposal systems Ȋ City/county planning departments

Site Improvements
—ȱ Šȱ œ’Žȱ ŽœŒ›’™’˜—ǰȱ Š—ȱ Š™™›Š’œŽ›ȱ ŽœŒ›’‹Žœȱ ˜ěȬœ’Žȱ Š—ȱ ˜—Ȭœ’Žȱ ’–™›˜ŸŽ–Ž—œǯȱ ‘Ž—ȱ
‘ŽȱŠ™™›Š’œŽ›ȱŠ—Š•¢£Žœȱ‘˜ ȱ‘Žȱœ’Žȱ’–™›˜ŸŽ–Ž—œȱŠěŽŒȱŸŠ•žŽǯȱ—Ȭœ’Žȱ’–™›˜ŸŽ–Ž—œȱ
’—Œ•žŽȱ ›Š’—ǰȱ •Š—œŒŠ™’—ǰȱ Ž—ŒŽœǰȱ Œž›‹œǰȱ žĴŽ›œǰȱ ™ŠŸ’—ǰȱ ›Š’—ŠŽȱ Š—ȱ ’››’Š’˜—ȱ
œ¢œŽ–œǰȱ  Š•”œǰȱ Š—ȱ ˜‘Ž›ȱ ’–™›˜ŸŽ–Ž—œȱ ˜ȱ ‘Žȱ •Š—ǯȱ ěȬœ’Žȱ ’–™›˜ŸŽ–Ž—œȱ ’—Œ•žŽȱ
ŠŒŒŽœœȱ›˜Šœǰȱž’•’¢ȱ‘˜˜”Ȭž™œǰȱ›Ž–˜Žȱ ŠŽ›ȱ›ŽŽ—’˜—ȱ™˜—œǰȱŠ—ȱœŽ Ž›ȱŠ—ȱ›Š’—ŠŽȱ
•’—Žœǯȱ—ȱ Š™™›Š’œŽ›ȱ ¢™’ŒŠ••¢ȱ Œ˜—œ’Ž›œȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ ˜ěȬœ’Žȱ ’–™›˜ŸŽ–Ž—œȱ ’—ȱ ‘Žȱ œ’Žȱ
ŸŠ•žŠ’˜—ȱ™›˜ŒŽœœǯ
—ȱ Š™™›Š’œŽ›ȱ –žœȱ Š•œ˜ȱ ŽœŒ›’‹Žȱ Š—ȱ Š—Š•¢£Žȱ ‘Žȱ •˜ŒŠ’˜—ȱ ˜ȱ Ž¡’œ’—ȱ ‹ž’•’—œȱ
˜—ȱ Šȱ œ’Žǯȱ Š—¢ȱ Š™™›Š’œŽ›œȱ –Š”Žȱ Š™™›˜¡’–ŠŽȱ ™•˜ȱ ™•Š—ȱ ›Š ’—œȱ ‘Šȱ œ‘˜ ȱ ‘Žȱ

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 Chapter 10 – Land and Site Analysis 10.19

™•ŠŒŽ–Ž—ȱ ˜ȱ –Š“˜›ȱ ‹ž’•’—œȱ ’—ȱ ›Ž•Š’˜—ȱ ˜ȱ •˜ȱ •’—Žœǰȱ ŠŒŒŽœœȱ ™˜’—œǰȱ Š—ȱ ™Š›”’—ȱ ˜›ȱ
›’ŸŽ Š¢ȱ Š›ŽŠœǯȱ Š—Ȭ˜Ȭ‹ž’•’—ȱ ›Š’˜œȱ Š—ȱ ˜ŸŽ›Š••ȱ œ’Žȱ Œ˜—ꐞ›Š’˜—ȱ Š›Žȱ žœžŠ••¢ȱ
šž’Žȱ ’–™˜›Š—ȱ ˜ȱ Šȱ œ’Žȇœȱ Š™™ŽŠ•ȱ Š—ȱ Š‹’•’¢ȱ ˜ȱ œž™™˜›ȱ œ™ŽŒ’ęŒȱ žœŽœǯȱ ‘Žȱ œ™ŠŒŽȱ
Š••˜ĴŽȱ ˜›ȱ ™Š›”’—ȱ ’—ĚžŽ—ŒŽœȱ Šȱ œ’Žȇœȱ ŸŠ•žŽȱ ˜›ȱ ‹žœ’—Žœœȱ Š—ȱ Œ˜––Ž›Œ’Š•ȱ žœŽDzȱ ‘Ž›ŽȬ
˜›Žǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱŠ—Š•¢£Žȱ‘Žȱ™Š›”’—ȱœ™ŠŒŽȬ˜Ȭ‹ž’•’—ȱ›Š’˜ȱ’—ȱŠȱŒ˜––Ž›Œ’Š•ȱ
Š—ȱ’—žœ›’Š•ȱ™›˜™Ž›¢ǯȱ˜—’—ȱŒ˜ŽœȱŠ—ȱ™Š›”’—ȱ‹¢Ȭ•Š œȱ ’••ȱœ™ŽŒ’¢ȱ‘Žȱ–’—’–ž–ȱ
—ž–‹Ž›ȱ˜ȱœ™ŠŒŽœȱ›Žšž’›Žǯ
‘Žȱ Š™™›Š’œŽ›ȱ Œ˜—œ’Ž›œȱ Š—¢ȱ ˜—Ȭœ’Žȱ ’–™›˜ŸŽ–Ž—œȱ ‘Šȱ Šȱ ˜ȱ ˜›ȱ Ž›ŠŒȱ ›˜–ȱ Šȱ
™›˜™Ž›¢ȇœȱ ˜™’–Š•ȱ žœŽȱ ˜›ȱ ‘’‘Žœȱ Š—ȱ ‹Žœȱ žœŽǯȱ ˜›ȱ Ž¡Š–™•Žǰȱ Šȱ •˜ȱ £˜—Žȱ ˜›ȱ –ž•’Ȭ
ž—’ȱ ›Žœ’Ž—’Š•ȱ žœŽȱ –’‘ȱ ‹Žȱ ’–™›˜ŸŽȱ  ’‘ȱ Š—ȱ ŗŞȬž—’ȱ Š™Š›–Ž—ȱ ‹ž’•’—ȱ ‘Šȱ ’œȱ
˜˜ȱŸŠ•žŠ‹•Žȱ˜ȱŽ–˜•’œ‘ǯȱȱ‘Žȱœ’ŽȱŠœȱŸŠŒŠ—ȱŒ˜ž•ȱŠŒŒ˜––˜ŠŽȱŠȱŘŚȬž—’ȱ‹ž’•’—ȱ
‹žȱ ‘Žȱ •˜ŒŠ’˜—ȱ ˜ȱ ‘Žȱ ™›ŽœŽ—ȱ œ›žŒž›Žȱ ‹•˜Œ”œȱ ‘Žȱ Š‹’•’¢ȱ ˜ȱ Šȱ Š’’˜—Š•ȱ ž—’œǰȱ
‘Žȱ Š™™›Š’œŽ›ȱ –Š¢ȱ Œ˜—Œ•žŽȱ ‘Šȱ ‘Žȱ œ’Žȱ ’œȱ ž—Ž›’–™›˜ŸŽȱ Š—ȱ —˜ȱ ŽŸŽ•˜™Žȱ ˜ȱ ’œȱ
‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽǯ

Accessibility
’Žȱ Š—Š•¢œ’œȱ ˜ŒžœŽœȱ ˜—ȱ ‘Žȱ ’–ŽȬ’œŠ—ŒŽȱ ›Ž•Š’˜—œ‘’™œȱ ‹Ž ŽŽ—ȱ ‘Žȱ œž‹“ŽŒȱ œ’Žȱ Š—ȱ
˜‘Ž›ȱœ’Žœȱ‘ŠȱœŽ›ŸŽȱŠœȱŒ˜––˜—ȱ˜›’’—œȱŠ—ȱŽœ’—Š’˜—œǯȱ—ȱŠ™™›Š’œŽ›ȱŽœŒ›’‹ŽœȱŠ—ȱ
Š—Š•¢£ŽœȱŠ••ȱ˜›–œȱ˜ȱŠŒŒŽœœȱ˜ȱŠ—ȱ›˜–ȱ‘Žȱ™›˜™Ž›¢ȱŠ—ȱ‘Žȱ—Ž’‘‹˜ž›‘˜˜ǯȱ—ȱ–˜œȱ
ŒŠœŽœǰȱŠŽšžŠŽȱ™Š›”’—ȱŠ›ŽŠȱŠ—ȱ‘Žȱ•˜ŒŠ’˜—ȱŠ—ȱŒ˜—’’˜—ȱ˜ȱœ›ŽŽœǰȱŠ••Ž¢œǰȱŒ˜——ŽŒȬ
˜›ȱ ›˜Šœǰȱ ›ŽŽ Š¢œǰȱ Š—ȱ ‘’‘ Š¢œȱ Š›Žȱ ’–™˜›Š—ȱ ˜ȱ •Š—ȱ žœŽǯȱ —žœ›’Š•ȱ ™›˜™Ž›’Žœȱ
Š›Žȱ’—ĚžŽ—ŒŽȱ‹¢ȱ›Š’•ȱŠ—ȱ›ŽŽ Š¢ȱŠŒŒŽœœȱŠ—ȱ‘Žȱ™›˜¡’–’¢ȱ˜ȱ˜Œ”’—ȱŠŒ’•’’Žœǯȱ‘Žȱ
•˜ŒŠ’˜—ȱ ˜ȱ Š’›™˜›œǰȱ ›ŽŽ Š¢œǰȱ ™ž‹•’Œȱ ›Š—œ™˜›Š’˜—ǰȱ Š—ȱ ›Š’•›˜Šȱ œŽ›Ÿ’ŒŽȱ Š••ȱ ŠěŽŒȱ
’—žœ›’Š•ǰȱŒ˜––Ž›Œ’Š•ǰȱŠ—ȱ›Žœ’Ž—’Š•ȱŠ›ŽŠœǯȱ
›ŠĜŒȱŸ˜•ž–Žȱ–Š¢ȱ‹ŽȱŽ’‘Ž›ȱŠŸŠ—ŠŽ˜žœȱ˜›ȱ’œŠŸŠ—ŠŽ˜žœȱ˜ȱŠȱœ’ŽǰȱŽ™Ž—Ȭ
’—ȱ˜—ȱ˜‘Ž›ȱŒ˜—’’˜—œȱ‘ŠȱŠěŽŒȱ’œȱ‘’‘ŽœȱŠ—ȱ‹ŽœȱžœŽǯȱ
’‘ȬŸ˜•ž–Žȱ•˜ŒŠ•ȱ›ŠĜŒȱ
’—ȱ Œ˜––Ž›Œ’Š•ȱ Š›ŽŠœȱ ’œȱ žœžŠ••¢ȱ Š—ȱ ŠœœŽDzȱ ‘ŽŠŸ¢ȱ ‘›˜ž‘ȱ ›ŠĜŒȱ –Š¢ȱ ‘ž›ȱ ›ŽŠ’•ȱ œ˜›Žœǰȱ
Ž¡ŒŽ™ȱ ‘˜œŽȱ ‘Šȱ œŽ›ŸŽȱ ›Ž’˜—Š•ȱ ›ŠŸŽ•Ž›œǯȱ
ŽŠŸ¢ȱ ›ŠĜŒȱ  ’‘’—ȱ ›Žœ’Ž—’Š•ȱ Š›ŽŠœȱ ’œȱ
žœžŠ••¢ȱŽ›’–Ž—Š•ȱ˜›ȱœ’—•ŽȬž—’ȱ›Žœ’Ž—’Š•ȱ—Ž’‘‹˜ž›‘˜˜œǰȱ‹žȱ‘’‘Ȭ›ŠĜŒȱœ›ŽŽœȱ
‘Šȱ™›˜Ÿ’ŽȱŠŒŒŽœœȱ˜ȱŠȱœž‹’Ÿ’œ’˜—ȱ˜›ȱŽŸŽ•˜™–Ž—ȱŠ›ŽȱŠŸŠ—ŠŽ˜žœǯ

WHERE TO FIND – TRAFFIC VOLUME DATA

The volume of traffic passing a property is determined by a traffic count, which can usually be obtained
from municipal engineering departments or provincial departments of transportation. Traffic counts
indicate average daily traffic, peak hours, and direction. Observing the speed and turning movements of
actual vehicles helps an appraiser judge how traffic affects a property's highest and best use.

‘Žȱ —˜’œŽǰȱ žœǰȱ •’‘ǰȱ Š—ȱ ž–Žœȱ ‘Šȱ Œ˜–Žȱ ›˜–ȱ Šȱ ‘ŽŠŸ’•¢ȱ ›ŠŸŽ••Žȱ Š›Ž›¢ȱ ˜›ȱ
›ŽŽ Š¢ȱ Š›Žȱ —˜ȱ Žœ’›Š‹•Žȱ ˜›ȱ –˜œȱ •˜ ȬŽ—œ’¢ǰȱ ›Žœ’Ž—’Š•ȱ •˜œǯȱ —ȱ ‘Žȱ ˜‘Ž›ȱ ‘Š—ǰȱ
‘Žȱ ŠŸŽ›’œ’—ȱ ŸŠ•žŽȱ ˜ȱ •˜ŒŠ’˜—œȱ ˜—ȱ –Š“˜›ȱ Š›Ž›’Žœȱ ŒŠ—ȱ ‹Ž—Žęȱ ˜ĜŒŽœȱ Š—ȱ œ‘˜™™’—ȱ
ŒŽ—›Žœǰȱž—•ŽœœȱŒ˜—Žœ’˜—ȱ›Žœ›’Œœȱ‘Žȱ›ŽŽȱ̘ ȱ˜ȱ›ŠĜŒǯȱ‘ŽȱŸ’œ’‹’•’¢ȱ˜ȱŠȱŒ˜––Ž›Ȭ
Œ’Š•ȱ™›˜™Ž›¢ȱ›˜–ȱ‘Žȱœ›ŽŽȱǻŒ˜––Ž›Œ’Š•ȱŽ¡™˜œž›ŽǼȱ’œȱŠ—ȱŠŸŽ›’œ’—ȱŠœœŽDzȱ‘’œȱŠœœŽȱ

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 10.20 The Appraisal of Real Estate – Third Canadian Edition

’œȱ –˜œȱ ŸŠ•žŠ‹•Žȱ  ‘Ž—ȱ ‘Žȱ ›’Ÿ’—ȱ Œžœ˜–Ž›ȱ ŒŠ—ȱ ŽŠœ’•¢ȱ Ž¡’ȱ ‘Žȱ ̘ ȱ ˜ȱ ›ŠĜŒȱ Š—ȱ
Ž—Ž›ȱ‘Žȱ™›˜™Ž›¢ǯ
Ž’Š—ȱœ›’™œǰȱž›—’—ȱ›Žœ›’Œ’˜—œǰȱ˜—ŽȬ Š¢ȱœ›ŽŽœǰȱŠ—ȱŠŒŒŽœœȱ›Žœ›’Œ’˜—œȱ
ŒŠ—ȱ •’–’ȱ ‘Žȱ ™˜Ž—’Š•ȱ žœŽœȱ ˜ȱ Šȱ ™Š›ŒŽ•ǯȱ —ȱ œ’Žȱ Š—Š•¢œ’œǰȱ ‘Žȱ Š™™›Š’œŽ›ȱ œ‘˜ž•ȱ Žœȱ
‘Žȱ ™›˜‹Š‹•Žȱ žœŽœȱ ˜ȱ ‘Žȱ œ’Žȱ ’—ȱ ›Ž•Š’˜—ȱ ˜ȱ ‘Žȱ •˜ ȱ ˜ȱ ›Š’Œǯȱ ‘Žȱ Š™™›Š’œŽ›ȱ –žœȱ
ŸŽ›’¢ȱ ™•Š——Žȱ Œ‘Š—Žœȱ ’—ȱ ŠŒŒŽœœȱ  ’‘ȱ ‘Žȱ Š™™›˜™›’ŠŽȱ Šž‘˜›’¢ȱ Š—ȱ Œ˜—œ’Ž›ȱ
‘ŽœŽȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ǯ

Environment
™™›Š’œŽ›œȱŠ•œ˜ȱŠ—Š•¢£Žȱ•Š—ȱžœŽȱ’—ȱ•’‘ȱ˜ȱŽ—Ÿ’›˜—–Ž—Š•ȱŒ˜—’’˜—œǯȱ—Ÿ’›˜—–Ž—Š•ȱ
Œ˜—œ’Ž›Š’˜—œȱ’—Œ•žŽȱŠŒ˜›œȱœžŒ‘ȱŠœȱ‘Žȱ˜••˜ ’—DZ
yȱ ˜ŒŠ•ȱŒ•’–ŠŽ
yȱ ŸŠ’•Š‹’•’¢ȱ˜ȱŠŽšžŠŽȱŠ—ȱœŠ’œŠŒ˜›¢ȱ ŠŽ›ȱœž™™•¢
yȱ ŠĴŽ›—ȱ˜ȱ›Š’—ŠŽ
yȱ žŠ•’¢ȱ˜ȱŠ’›
yȱ ›ŽœŽ—ŒŽȱ˜ȱ ’••’ŽȦŽ—Š—Ž›Žȱœ™ŽŒ’Žœȱ‘Š‹’Šœ
yȱ ˜ŒŠ’˜—ȱ˜ȱŽŠ›‘šžŠ”ŽȱŠž•œȱŠ—ȱ”—˜ —ȱœ•’Žȱ˜›ȱŠŸŠ•Š—Œ‘Žȱ£˜—Žœ
yȱ ›˜¡’–’¢ȱ˜ȱœ›ŽŠ–œǰȱ Ž•Š—œǰȱ›’ŸŽ›œǰȱ•Š”Žœǰȱ˜›ȱ˜ŒŽŠ—œ
’›ȱ Š—ȱ  ŠŽ›ȱ ™˜••ž’˜—ȱ Š›Žȱ ‹¢Ȭ™›˜žŒœȱ ˜ȱ ’—Œ›ŽŠœŽȱ ™˜™ž•Š’˜—ȱ Š—ȱ ž›‹Š—’£Š’˜—ǯȱ
ž‹•’ŒȱŒ˜—ŒŽ›—ȱ˜ŸŽ›ȱ™˜••ž’˜—ȱ‘Šœȱ™›˜–™Žȱ™˜•’’ŒŠ•ȱŠŒ’˜—ȱŠ—ȱ•Ž’œ•Š’˜—ȱ˜ȱ™›˜ŽŒȱ
‘Žȱ Ž—Ÿ’›˜—–Ž—ǯȱ —ȱ Š›ŽŠœȱ œž‹“ŽŒȱ ˜ȱ Ž¡›Ž–Žȱ Š’›ȱ ™˜••ž’˜—ǰȱ ›Žž•Š’˜—œȱ –Š¢ȱ Ž¡Œ•žŽȱ
ŒŽ›Š’—ȱ ’—žœ›’Žœȱ Š—ȱ •’–’ȱ ‘Žȱ Ÿ˜•ž–Žȱ ˜ȱ ›ŠĜŒDzȱ œžŒ‘ȱ ›Žœ›’Œ’˜—œȱ ŠěŽŒȱ •Š—ȱ žœŽȱ ’—ȱ
‘ŽœŽȱ“ž›’œ’Œ’˜—œǯȱ—ȱœ˜–Žȱ“ž›’œ’Œ’˜—œǰȱ™˜••ž’˜—ȱ›’‘œȱ‘ŠŸŽȱŠ•œ˜ȱ‹ŽŒ˜–ŽȱŠȱœŠ•ŽŠ‹•Žȱ
Œ˜––˜’¢ǯȱ —ȱ •˜ŒŠ’˜—œȱ —ŽŠ›ȱ —Šž›Š•ȱ  ŠŽ›ȱ œ˜ž›ŒŽœǰȱ ’—žœ›’Š•ȱ žœŽœȱ –Š¢ȱ ‹Žȱ ™›˜‘’‹Ȭ
’Žȱ ‘’•Žȱ›ŽŒ›ŽŠ’˜—Š•ȱžœŽœȱŠ›Žȱ™›˜–˜Žǯȱ—ȱŠ™™›Š’œŽ›ȱ–žœȱŠ—Š•¢£ŽȱŽ—Ÿ’›˜—–Ž—Š•ȱ
Š—ȱ Œ•’–Š’Œȱ ŠŸŠ—ŠŽœȱ Š—ȱ Œ˜—œ›Š’—œȱ ˜ȱ ŽŽ›–’—Žȱ ‘Žȱ ™›˜™Ž›ȱ •Š—ȱ žœŽȱ ˜›ȱ Šȱ œ’Žǯȱ
žž›Žȱ•Š—ȱžœŽœȱ–žœȱ‹ŽȱŒ˜–™Š’‹•Žȱ ’‘ȱ‘Žȱ•˜ŒŠ•ȱŽ—Ÿ’›˜—–Ž—ǯ
ȱ œ’Žȱ ’—ȱ Šȱ œ™ŽŒ’ęŒȱ •˜ŒŠ’˜—ȱ –Š¢ȱ ‹Žȱ ’—ĚžŽ—ŒŽȱ ‹¢ȱ ’œȱ Ž¡™˜œž›Žȱ ˜ȱ œž—ǰȱ  ’—ǰȱ ˜›ȱ
˜‘Ž›ȱŽ—Ÿ’›˜—–Ž—Š•ȱŠŒ˜›œǯȱȱŸŽ›¢ȱ ’—¢ȱ•˜ŒŠ’˜—ȱŒŠ—ȱ‹Žȱ’œŠœ›˜žœȱ˜ȱŠȱ›Žœ˜›ȱ‹žȱ
‹Ž—ŽęŒ’Š•ȱ ˜ȱ Šȱ ˜œœ’•ȬžŽ•ȱ ™˜ Ž›ȱ ™•Š—ǯȱ ‘Žȱ œž——¢ȱ œ’Žȱ ˜ȱ ‘Žȱ œ›ŽŽȱ ’œȱ —˜ȱ Š• Š¢œȱ ‘Žȱ
–˜œȱŽœ’›Š‹•Žȱ˜›ȱ›ŽŠ’•ȱœ‘˜™œǯȱ—ȱ‘˜ȱŒ•’–ŠŽœǰȱ‘Žȱœ‘Š¢ȱœ’Žȱ˜ȱ‘Žȱœ›ŽŽȱ˜Ž—ȱŽœȱ
–˜›Žȱ™ŽŽœ›’Š—ȱ›ŠĜŒȱŠ—ȱ›ŽŠŽ›ȱœŠ•Žœǰȱ‘žœȱ™›˜žŒ’—ȱ‘’‘Ž›ȱ›Ž—œȱŠ—ȱ‘’‘Ž›ȱ•Š—ȱ
ŸŠ•žŽœǯȱ”’ȱ›Žœ˜›œȱžœžŠ••¢ȱ‘ŠŸŽȱœ•˜™ŽœȱŠŒ’—ȱ—˜›‘ȱ˜›ȱœ—˜ ȱ›ŽŽ—’˜—ǰȱŠ—ȱ‹ž’•’—œȱ
ŠŒ’—ȱœ˜ž‘ȱŠ›ŽȱŽœ’›Š‹•Žǯ
—Š•¢œ’œȱ ˜ȱ Šȱ œ’Žȇœȱ Ž—Ÿ’›˜—–Ž—ȱ ˜ŒžœŽœȱ ˜—ȱ ‘Žȱ ’—Ž››Ž•Š’˜—œ‘’™œȱ ‹Ž ŽŽ—ȱ ‘Žȱ
Š™™›Š’œŽȱ œ’Žȱ Š—ȱ —Ž’‘‹˜ž›’—ȱ ™›˜™Ž›’Žœǯȱ —ȱ Š™™›Š’œŽ›ȱ –žœȱ Œ˜—œ’Ž›ȱ ‘Žȱ ŽěŽŒœȱ
˜ȱŠ—¢ȱ‘Š£Š›œȱ˜›ȱ—ž’œŠ—ŒŽœȱŒŠžœŽȱ‹¢ȱ—Ž’‘‹˜ž›’—ȱ™›˜™Ž›’Žœǯǯȱȱ™Š›’Œž•Š›ȱ’–™˜›Ȭ
Š—ŒŽȱ Š›Žȱ œŠŽ¢ȱ Œ˜—ŒŽ›—œǰȱ Žǯǯǰȱ ‘Žȱ œŠŽ¢ȱ ˜ȱ Ž–™•˜¢ŽŽœȱ Š—ȱ Œžœ˜–Ž›œǰȱ ˜ȱ ˜ŒŒž™Š—œȱ
Š—ȱŸ’œ’˜›œǰȱ˜›ȱ˜ȱŒ‘’•›Ž—ȱ˜’—ȱ˜ȱŠ—ȱ›˜–ȱœŒ‘˜˜•ǯ
ȱœ’ŽȇœȱŸŠ•žŽȱ’œȱŠ•œ˜ȱ’—ĚžŽ—ŒŽȱ‹¢ȱ—ŽŠ›‹¢ȱŠ–Ž—’’ŽœȱŠ—ȱŽŸŽ•˜™–Ž—œȱ˜—ȱŠ“˜’—Ȭ
’—ȱ œ’Žœǰȱ œžŒ‘ȱ Šœȱ ™Š›”œǰȱ ꗎȱ ǻ˜›ȱ •Š—–Š›”Ǽȱ ‹ž’•’—œǰȱ Š—ȱ Œ˜–™Š’‹•Žȱ Œ˜––Ž›Œ’Š•ȱ
‹ž’•’—œǯȱ‘Žȱ¢™Žœȱ˜ȱœ›žŒž›Žœȱœž››˜ž—’—ȱ‘Žȱ™›˜™Ž›¢ȱ‹Ž’—ȱŠ™™›Š’œŽȱŠ—ȱ‘Žȱ
ŠŒ’Ÿ’’Žœȱ˜ȱ‘˜œŽȱ ‘˜ȱžœŽȱ‘Ž–ȱŒŠ—ȱ›ŽŠ•¢ȱ’—ĚžŽ—ŒŽȱœ’ŽȱŸŠ•žŽǯ

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 Chapter 10 – Land and Site Analysis 10.21

Figure 10.4: Wetlands Map

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 21 10/4/2010 10:35:50 AM

 10.22 The Appraisal of Real Estate – Third Canadian Edition

ŽŽ›Š•ȱ Š—ȱ ™›˜Ÿ’—Œ’Š•ȱ Ž—Ÿ’›˜—–Ž—Š•ȱ ŠŽ—Œ’Žœȱ ‘ŠŸŽȱ ’œœžŽȱ –Š—¢ȱ Ž—Ÿ’›˜—Ȭ

–Ž—Š•ȱ ›Žž•Š’˜—œȱ ‘Šȱ ŠěŽŒȱ ‘Žȱ žœŽȱ ˜ȱ •Š—ȱ Š—ȱ –Š¢ȱ ŠěŽŒȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ •Š—ȱ Š—ȱ
’–™›˜ŸŽȱ ™›˜™Ž›’Žœǯȱ ȱ Œ˜–™•Ž¡ȱ —Ž ˜›”ȱ ˜ȱ ›Žž•Š’˜—œȱ Žę—Žœȱ ‘Žȱ Ž—Ÿ’›˜—–Ž—Š•ȱ
›Žœ™˜—œ’‹’•’’Žœȱ Š—ȱ ™˜Ž—’Š•ȱ •’Š‹’•’’Žœȱ ˜ȱ ™›˜™Ž›¢ȱ ˜ —Ž›œȱ Š—ȱ ’—ŸŽœ˜›œǰȱ Š—ȱ ‘ŽœŽȱ
›Žœ™˜—œ’‹’•’’ŽœȱŠ—ȱ•’Š‹’•’’ŽœȱŒŠ—ȱŠŸŽ›œŽ•¢ȱŠěŽŒȱ‘ŽȱŸŠ•žŽȱ˜ȱ›ŽŠ•ȱ™›˜™Ž›¢ȱ’—Ž›Žœœǯȱ
—ȱ ˜—Žȱ ‘Š—ǰȱ Ž—Ÿ’›˜—–Ž—Š•ȱ ›Žž•Š’˜—œȱ ŒŠ—ȱ •’–’ȱ ‘Žȱ žœŽȱ ˜ȱ •Š—ȱ ‘›˜ž‘ȱ ™›˜ŽŒȬ
’˜—ȱ ˜ȱ —Šž›Š•ȱ Š›ŽŠœȱ œžŒ‘ȱ Šœȱ  Ž•Š—œǰȱ Ššž’Ž›ȱ ›ŽŒ‘Š›Žȱ £˜—Žœǰȱ Š—ȱ ‘Š‹’Šȱ Š›ŽŠœȱ ˜›ȱ
Ž—Š—Ž›Žȱ˜›ȱ‘›ŽŠŽ—Žȱœ™ŽŒ’Žœǯȱ—ȱ‘Žȱ˜‘Ž›ȱ‘Š—ǰȱ›ŽŠ•ȱ™›˜™Ž›¢ȱ’—Ž›Žœœȱ–Š¢ȱ‹Žȱ
’–™ŠŒŽȱ žŽȱ ˜ȱ –Š—ȇœȱ žœŽȱ ˜›ȱ –’œžœŽȱ ˜ȱ ‘Žȱ •Š—ǯȱ Š—Ȭ–ŠŽȱ Ž—Ÿ’›˜—–Ž—Š•ȱ ’œœžŽœȱ
–Š¢ȱ ‹Žȱ ’—’ŒŠŽȱ ‹¢ȱ ‘Žȱ ™›ŽœŽ—ŒŽȱ ˜ȱ ‘Š£Š›˜žœȱ –ŠŽ›’Š•œȱ œžŒ‘ȱ Šœȱ Šœ‹Žœ˜œǰȱ œǰȱ ˜›ȱ
™Ž›˜•Žž–ȱ‘¢›˜ŒŠ›‹˜—œȱ›˜–ȱ•ŽŠ”’—ȱž—Ž››˜ž—ȱœ˜›ŠŽȱŠ—”œȱǻœǼǯȱ‘ŽȱŽ¡’œȬ
Ž—ŒŽȱ˜ȱ˜—Žȱ˜›ȱ–˜›ŽȱŠŸŽ›œŽȱŽ—Ÿ’›˜—–Ž—Š•ȱŒ˜—’’˜—œȱŒŠ—ȱ›ŽžŒŽȱ‘Žȱ–Š›”ŽȱŸŠ•žŽȱ
˜ȱ›ŽŠ•ȱ™›˜™Ž›¢ȱ’—Ž›Žœœȱ’—ȱŠȱœ’Žǯ
™™›Š’œŽ›œȱŠ›Žȱ—˜ȱŽ¡™ŽŒŽȱ˜ȱ‘ŠŸŽȱ‘Žȱ”—˜ •ŽŽȱ˜›ȱŽ¡™Ž›’Ž—ŒŽȱ—ŽŽŽȱ˜ȱŽŽŒȱ
‘Žȱ™›ŽœŽ—ŒŽȱ˜ȱ‘Š£Š›˜žœȱœž‹œŠ—ŒŽœȱ˜›ȱ˜ȱ–ŽŠœž›Žȱ‘Ž’›ȱšžŠ—’’Žœǯȱ’”Žȱ‹ž¢Ž›œȱŠ—ȱ
œŽ••Ž›œȱ’—ȱ‘Žȱ›ŽŠ•ȱŽœŠŽȱ–Š›”Žǰȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱ˜Ž—ȱ›Ž•¢ȱ˜—ȱ‘ŽȱŠŸ’ŒŽȱ˜ȱ˜‘Ž›œǰȱ
œžŒ‘ȱ Šœȱ Ž—’—ŽŽ›œȱ ˜›ȱ ŽŒ‘—’ŒŠ•ȱ ™Ž›œ˜——Ž•ȱ  ’‘ȱ ›Š’—’—ȱ ’—ȱ ‘Žȱ ŽŽŒ’˜—ȱ Š—ȱ Š—Š•¢œ’œȱ
˜ȱ‘Š£Š›˜žœȱœž‹œŠ—ŒŽœǯȱ
˜ ŽŸŽ›ǰȱŽ™Ž—’—ȱ˜—ȱ‘Ž’›ȱ”—˜ •ŽŽȱŠ—ȱŽ¡™Ž›’Ž—ŒŽȱ’—ȱ
‘ŽȱŠ™™›Š’œŠ•ȱꎕǰȱŠ™™›Š’œŽ›œȱŒ˜ž•ȱ›ŽŠœ˜—Š‹•¢ȱ‹ŽȱŽ¡™ŽŒŽȱ˜ȱŽœ’–ŠŽȱ‘Žȱ’–™ŠŒȱ˜ȱ
Ž—Ÿ’›˜—–Ž—Š•ȱŒ˜—Š–’—Š’˜—ȱ˜—ȱ™›˜™Ž›¢ȱŸŠ•žŽǯȱ‘ŽȱŒ˜—œ’Ž›Š’˜—ȱ˜ȱŽ—Ÿ’›˜—–Ž—Š•ȱ
Œ˜—Š–’—Š’˜—ȱ’—ȱ‘ŽȱŠ™™›Š’œŠ•ȱ™›˜ŒŽœœȱ‘Šœȱ‹ŽŽ—ȱœ™ŽŒ’ęŒŠ••¢ȱŠ›ŽœœŽȱ’—ȱ™›˜Žœœ’˜—Š•ȱ
Š™™›Š’œŠ•ȱœŠ—Š›œǰȱ ’‘ȱ˜™’ŒœȱŠ›ŽœœŽȱ’—Œ•ž’—ȱ›Ž•ŽŸŠ—ȱ™›˜™Ž›¢ȱŒ‘Š›ŠŒŽ›’œ’Œœȱ

Figure 10.5: Relevant Property Characteristics

Professional standards discuss the relevant property characteristics that an appraiser should consider
in an assignment involving a contaminated property:

Ȋ Whether the contamination discharge was accidental or permitted

Ȋ The status of the property with respect to regulatory compliance requirements
Ȋ The remediation lifecycle stage (before, during, or after cleanup) of the property as of the
appraisal date
Ȋ The contamination constituents, e.g., petroleum hydrocarbons, chlorinated solvents
Ȋ The contamination conveyance, e.g., air, groundwater, soil
Ȋ Whether the property is a source, non-source, adjacent, or proximate site
Ȋ The cost and timing of any site remediation plans
Ȋ Liabilities and potential liabilities for site cleanup
Ȋ Potential limitations on the use of the property due to the contamination and its remediation
Ȋ Potential or actual off-site impacts due to contaminant migration (for source sites)

These characteristics may be used to describe the site and its environmental history and condition.
They can also form the base of information from which to value a contaminated site and estimate the
impact of the contamination on its value using one or more specialized valuation methods that have
emerged in recent years for this purpose.

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 Chapter 10 – Land and Site Analysis 10.23

Figure 10.6: Specialized Terms and Definitions

Professional standards set forth the following key terms and definitions for use by appraisers who
may be involved in the valuation of environmentally impacted properties:

Ȋ Diminution in Value (Property Value Diminution): The difference between the unimpaired and
impaired values of the property being appraised. This difference can be due to the increased
risk or costs (or both) attributable to the property's environmental condition.
Ȋ Environmental Contamination: Adverse environmental conditions resulting from the release of
hazardous substances into the air, surface water, groundwater, or soil. Generally, the concen-
trations of these substances would exceed regulatory limits established by the appropriate
federal, provincial, or local agencies.
Ȋ Environmental Risk: The additional or incremental risk of investing in, financing, buying, or
owning property attributable to its environmental condition. This risk is derived from perceived
uncertainties concerning: 1) the nature and extent of the contamination; 2) estimates of future
remediation costs and their timing; 3) potential for changes in regulatory requirements; 4)
liabilities for cleanup (buyer, seller, third party); 5) potential for off-site impacts; and 6) other
environmental risk factors, as may be relevant.
Ȋ Environmental Stigma: An adverse effect on property value produced by the market's percep-
tion of increased environmental risk due to contamination (see Environmental Risk above).
Ȋ Impaired Value: The market value of the property being appraised with full consideration of
the effects of its environmental condition and the presence of environmental contamination on,
adjacent to, or proximate to the property. Conceptually, this could be considered the "as-is"
value of a contaminated property.
Ȋ Remediation Cost: The cost to cleanup (or remediate) a contaminated property to the appro-
priate regulatory standards. These costs can be for the cleanup of on-site contamination as
well as mitigation of off-site impacts due to migrating contamination.
Ȋ Remediation Lifecycle: A cycle consisting of three stages of cleanup of a contaminated site:
before remediation or cleanup, during remediation, and after remediation. A contaminated
property's remediation lifecycle stage is an important determinant of the risk associated with
environmental contamination. Environmental risk can be expected to vary with the remediation
lifecycle stage of the property.
Ȋ Source, Non-source, Adjacent, and Proximate Sites: Source sites are the sites on which
contamination is, or has been, generated. Non-source sites are sites onto which contamina-
tion, generated from a source site, has migrated. An adjacent site is not contaminated, but
shares a common property line with a source site. Proximate sites are not contaminated and
not adjacent to a source site, but are in close proximity to the source site.
Ȋ Unimpaired Value: The market value of a contaminated property developed under the hypo-
thetical condition that the property is not contaminated.

Source: Canadian Uniform Standards, 2010, 12.22 to 12.26 and Advisory Opinion 9 of Uniform Standards of Professional
Appraisal Practise (USPAP), originally adopted in 1992 and substantially revised in 2002, Appraisal Foundation, Washington

ǻœŽŽȱ ’ž›Žȱ ŗŖǯśǼǰȱ œ™ŽŒ’Š•’£Žȱ Ž›–œȱ Š—ȱ Žę—’’˜—œǰȱ Š—ȱ ’œœžŽœȱ ’—Ÿ˜•ŸŽȱ ’—ȱ ŸŠ•ž’—ȱ
™˜Ž—’Š••¢ȱ’–™ŠŒŽȱ™›˜™Ž›’ŽœȱŠœȱ’ȱž—’–™Š’›ŽȱŠ—ȱŠœȱ’–™Š’›ŽǯŘ
‘Žȱ Š™™›Š’œŠ•ȱ ™›˜Žœœ’˜—ȱ ‘Šœȱ Š››’ŸŽȱ Šȱ Šȱ Œ˜––˜—ȱ œŽȱ ˜ȱ œ™ŽŒ’Š•’£Žȱ Ž›–œȱ Š—ȱ
Žę—’’˜—œȱ ‘Šȱ ™Ž›Š’—ȱ ˜ȱ Œ˜—Š–’—ŠŽȱ ™›˜™Ž›’Žœȱ Š—ȱ ‘Ž’›ȱ ŸŠ•žŠ’˜—ǯȱ ’ž›Žȱ ŗŖǯŜȱ
•’œœȱŽ›–œǰȱŽę—’’˜—œǰȱŠ—ȱŒ˜—ŒŽ™œȱ›Ž•ŽŸŠ—ȱ˜ȱŠ—ȱŠ™™›Š’œŠ•ȱŠœœ’—–Ž—ȱ’—Ÿ˜•Ÿ’—ȱŠȱ
œ’Žȱ‘Šȱ–’‘ȱ‹Žȱ™˜Ž—’Š••¢ȱ’–™ŠŒŽȱ‹¢ȱŽ—Ÿ’›˜—–Ž—Š•ȱŒ˜—Š–’—Š’˜—ǯ
2
Canadian Uniform Standards of Professional Appraisal Practise, 2010, 12.22 to 12.26.

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 10.24 The Appraisal of Real Estate – Third Canadian Edition

‘Žȱ ›Ž•ŽŸŠ—ȱ ™›˜™Ž›¢ȱ Œ‘Š›ŠŒŽ›’œ’Œœȱ ’—ȱ ’ž›Žȱ ŗŖǯśȱ Š—ȱ ‘Žȱ ŸŠ•žŠ’˜—ȱ
Œ˜—ŒŽ™œǰȱŽ’—’’˜—œǰȱŠ—ȱŽ›–œȱ’—ȱ’ž›ŽȱŗŖǯŜȱ•ŽŠȱ˜ȱŠȱŸŠ•žŠ’˜—ȱ›Š–Ž ˜›”ȱ‘Šȱ
˜ŒžœŽœȱ ˜—ȱ ‘Žȱ ™˜Ž—’Š•ȱ ŽŽŒȱ ˜ȱ Œ˜—Š–’—Š’˜—ȱ ˜—ȱ ‘Žȱ ‘¢™˜‘Ž’ŒŠ•ȱ ž—’–™Š’›Žȱ
ŸŠ•žŽȱ˜ȱ‘Žȱ™›˜™Ž›¢ǯ
‘ŽœŽȱ ŽěŽŒœȱ ŒŠ—ȱ ›ŽžŒŽȱ ‘Žȱ ž—’–™Š’›Žȱ ŸŠ•žŽȱ ˜ȱ  ‘Šȱ ‘Šœȱ ‹ŽŽ—ȱ ›ŽŽ››Žȱ ˜ȱ Šœȱ
‘Žȱ ™›˜™Ž›¢ȇœȱ ’–™Š’›Žȱ ŸŠ•žŽǯȱ ˜›ȱ ‘Žȱ Š™™›Š’œŽ›ǰȱ ‘Žȱ ”Ž¢ȱ Œ˜—œ’Ž›Š’˜—ȱ ’—Ÿ˜•ŸŽœȱ ‘Žȱ
ŠœœŽ–‹•¢ȱ ˜ȱ ›Ž•ŽŸŠ—ȱ –Š›”Žȱ ŽŸ’Ž—ŒŽȱ ˜ȱ ‘Žȱ ›ŽžŒ’˜—ȱ ’—ȱ ŸŠ•žŽǯȱ ™™›Š’œŽ›œȱ –žœȱ
ŠŸ˜’ȱœž‹œ’ž’—ȱ‘Ž’›ȱ“ž–Ž—ȱ˜›ȱ‘Šȱ˜ȱ‘Žȱ–Š›”Ž™•ŠŒŽǯȱ—ȱ›ŽŒŽ—ȱ¢ŽŠ›œǰȱŒ˜—Š–Ȭ
’—ŠŽȱ ™›˜™Ž›’Žœȱ ‘ŠŸŽȱ ‹ŽŒ˜–Žȱ –˜›Žȱ –Š›”ŽŠ‹•Žȱ Š—ȱ ‘ŠŸŽȱ ‹Žž—ȱ ˜ȱ Œ‘Š—Žȱ ‘Š—œȱ
 ’‘ȱ’—Œ›ŽŠœ’—ȱ›ŽšžŽ—Œ¢ǯȱžŒ‘ȱ›Š—œŠŒ’˜—œȱ ’••ȱžœžŠ••¢ȱ™›˜Ÿ’ŽȱœžĜŒ’Ž—ȱ‹Šœ’œȱ˜›ȱ
ŸŠ•ž’—ȱ˜›ȱŠ—Š•¢£’—ȱŠȱœ’Žȱ‘Šȱ–Š¢ȱ‹Žȱ’–™ŠŒŽȱ‹¢ȱŽ—Ÿ’›˜—–Ž—Š•ȱŒ˜—Š–’—Š’˜—ǯ

SPECIAL CHARACTERISTICS OF RURAL, AGRICULTURAL,

OR RESOURCE LAND
ž›Š•ȱ ˜›ȱ Š›’Œž•ž›Š•ȱ ›Žœ˜ž›ŒŽȱ •Š—œȱ ‘ŠŸŽȱ œ™ŽŒ’ęŒȱ Œ‘Š›ŠŒŽ›’œ’Œœȱ ‘Šȱ Š™™›Š’œŽ›œȱ
œ‘˜ž•ȱ’—ŸŽœ’ŠŽȱ˜ȱŽœŒ›’‹Žȱ‘ŽœŽȱ™›˜™Ž›’ŽœȱŠŽšžŠŽ•¢DZ
yȱ ˜’•ǯȱ›ŽŒ’œŽȱœ˜’•ȱœž›ŸŽ¢œȱ‘Šȱ’—’ŒŠŽȱ‘Žȱœ˜’•œȱ˜ž—ȱ˜—ȱ™›˜™Ž›’ŽœǰȱŠ™™›˜Ȭ
™›’ŠŽȱŒ›˜™œǰȱŠ—ȱŽ¡™ŽŒŽȱ™›˜žŒ’˜—ȱŠ›Žȱ˜Ž—ȱŠŸŠ’•Š‹•ŽȱǻœŽŽȱ’ž›ŽȱŗŖǯŝǼǯȱ
‘ŽœŽȱœž›ŸŽ¢œȱŠ›ŽȱžœŽž•ȱ’—ȱŒ˜–™Š›’—ȱŠ›’Œž•ž›Š•ȱ™›˜™Ž›’Žœǯ
yȱ ŠŽ›ȱ›’‘œǰȱ›Š’—ŠŽǰȱŠ—ȱ’››’Š’˜—ǯȱ‘Žȱ•ŽŠ•ȱ›’‘ȱ˜ȱ ŠŽ›ȱ’œȱŠœȱ’–™˜›Ȭ
Š—ȱ ˜ȱ ‘Žȱ ŸŠ•žŽȱ ˜ȱ Šȱ ™›˜™Ž›¢ȱ Šœȱ ‘Žȱ ™‘¢œ’ŒŠ•ȱ œ˜ž›ŒŽȱ ˜ȱ ‘Žȱ  ŠŽ›ǯȱ —•’”Žȱ
‘Žȱ—’ŽȱŠŽœǰȱ‘Žȱ˜ —Ž›œȱ˜ȱ™›˜™Ž›¢ȱ’—ȱŠ—ŠŠȱ‘ŠȱŠ‹žœȱŠȱ ŠŽ› Š¢ȱ
‘ŠŸŽȱ›ŽŠœ˜—Š‹•Žȱ›’‘œȱ˜ȱ‘Žȱ ŠŽ›ȱŠ—ȱ˜ȱ™‘¢œ’ŒŠ••¢ȱŠŒŒŽœœȱ‘Žȱ ŠŽ›ǯȱ‘Žȱ
™›˜Ÿ’—ŒŽœȱ Œ˜—›˜•ȱ  ŠŽ›ȱ ›’‘œȱ Š—ȱ ›Žž•ŠŽȱ  ŠŽ›ȱ žœŠŽǰȱ žœžŠ••¢ȱ ‘›˜ž‘ȱ
‘Ž’›ȱ Ž—Ÿ’›˜—–Ž—Š•ȱ –’—’œ›¢ǯȱ Š›’˜žœȱ ™›˜Ÿ’—Œ’Š•ȱ ŠŽ—Œ’Žœȱ ŽŽ›–’—Žȱ ‘Žȱ
™Ž›–’œœ’‹’•’¢ȱ˜ȱ•Š›ŽȬœŒŠ•ŽȱžœŽȱœžŒ‘ȱŠœȱ’››’Š’˜—ǯȱŠŽ›ȱŽ¡™˜›ȱ’œȱŠȱ–ŠĴŽ›ȱ
˜ȱœ˜–ŽȱœŽ—œ’’Ÿ’¢ȱ‘Šȱ‘ŽȱŽŽ›Š•ȱ˜ŸŽ›—–Ž—ȱ›Žž•ŠŽœǯř
yȱ •’–ŠŽǯȱ Ž—Ž›Š•ȱŒ•’–Š’ŒȱŒ˜—’’˜—œȱŠ—ȱ›˜ ’—ȱœŽŠœ˜—œȱŒŠ—ȱŠěŽŒȱŒ›˜™ȱ
™›˜žŒ’˜—ȱŠ—ǰȱ‘Ž›Ž˜›Žǰȱ•Š—ȱŸŠ•žŽǯ
yȱ ˜Ž—’Š•ȱ Œ›˜™œǯȱ ‘Žȱ Œ›˜™œȱ ›˜ —ȱ ˜—ȱ Šȱ ™›˜™Ž›¢ȱ Š›Žȱ ›Ž•ŠŽȱ —˜ȱ ˜—•¢ȱ ˜ȱ
Œ•’–ŠŽǰȱœ˜’•ǰȱŠ—ȱ’››’Š’˜—ǰȱ‹žȱŠ•œ˜ȱ˜ȱ‘ŽȱŠŸŠ’•Š‹’•’¢ȱ˜ȱ•Š‹˜ž›ǰȱ›Š—œ™˜›ŠȬ
’˜—ǰȱŠ—ȱŠŒŒŽœœȱ˜ȱ‘Žȱ–Š›”Žœȱ‘Šȱ–Š”Žǰȱ›Š—œ™˜›ǰȱŠ—ȱœŽ••ȱ‘Žȱ™›˜žŒœȱ
™›˜žŒŽȱ›˜–ȱŒ›˜™œǯ
yȱ —Ÿ’›˜—–Ž—Š•ȱ Œ˜—›˜•œǯȱ ›˜™™’—ȱ ™ŠĴŽ›—œȱ Š›Žȱ ’—ĚžŽ—ŒŽȱ ‹¢ȱ ›Žž•Š’˜—œȱ
˜—ȱ‘Ž›‹’Œ’Žœǰȱ’—œŽŒ’Œ’ŽœǰȱŽ›’•’£Ž›œǰȱŠ’›ȱŠ—ȱ ŠŽ›ȱ™˜••ž’˜—ǰȱŠ—ȱ ’••’Žȱ
™›˜ŽŒ’˜—ǯȱŽŠȬ‹ŠœŽȱ™Š’—ǰȱž—Ž››˜ž—ȱœ˜›ŠŽȱŠ—”œǰȱŠœ‹Žœ˜œȱ’—ȱŠ›–ȱ
‹ž’•’—œǰȱŠ—ȱŒŠĴ•ŽȱŸŠœȱŠ›ŽȱŒ˜––˜—ȱŽ—Ÿ’›˜—–Ž—Š•ȱ•’Š‹’•’’Žœǯ
yȱ ’—Ž›Š•ȱ›’‘œǯȱ‘Žȱ™›ŽœŽ—ŒŽȱ˜ȱ™›ŽŒ’˜žœȱ–ŽŠ•œǰȱ˜’•ȱŠ—ȱŠœǰȱœŠ—ȱŠ—ȱ›ŠŸŽ•ǰȱ
šžŠ››¢ȱ›Žȱ›˜Œ”ȱœžŒ‘ȱŠœȱ‹ž’•’—ȱœ˜—ŽǰȱŒ•Š¢ȱŽ™˜œ’œǰȱ˜›ȱŽ–œ˜—Žœȱ˜—ȱŠȱ™•˜ȱ
˜ȱ •Š—ȱ ŒŠ—ȱ ŠěŽŒȱ ’œȱ ŸŠ•žŽǯȱ œȱ  ’‘ȱ  ŠŽ›ȱ ›’‘œǰȱ ‘Žȱ •ŽŠ•ȱ ›’‘ȱ ˜ȱ Ž¡›ŠŒȱ
3
For more information on water rights in Canada, see www.wsc.ec.gc.ca/hydrology/main_e.cfm?cname=hydro_e.cfm
and www.watergovernance.ca

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

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 Chapter 10 – Land and Site Analysis 10.25

ENVIRONMENTALLY IMPACTED PROPERTIES

The effects of environmental contamination on the value of real property can be categorized as follows:
Ȋ Cost effects: deductions for costs to remediate a contaminated property to appropriate regulatory
standards, recognizing that not all costs are recognized by the market as having an effect on value.
Ȋ Use effects: limitations on the highest and best use of properties that may be impacted by environ-
mental contamination, recognizing that these effects would be meaningful only if they limited the
use of the site or property that would be the highest and best use without the effect of the contami-
nation, and would otherwise meet the four highest and best use criteria (physically possible, legally
permissible, financially feasible, and maximally productive).
Ȋ Risk effects: the effects on value due to increased perceptions of environmental risk by relevant
market participants.
These factors influence the value of a potentially impacted site according to the following formula:
Impaired Value = Unimpaired Value
− Cost Effects (Remediation and Related Costs)
− Use Effects (Effects on Site Usability)
− Risk Effects (Environmental Risk/Stigma)
In measuring the three potential effects on value (cost, use, and risk), cost effects are derived from
remediation costs, which are usually estimated by environmental specialists. Assuming the market
recognizes these costs, the appraiser can usually deduct them as a lump sum from the unimpaired value
in the same way that a capital expenditure is deducted for deferred maintenance. When a discounted
cash flow analysis is used, the anticipated costs can be deducted from the projected cash flows in the
periods in which they are projected to occur.
Uncertainty regarding cost estimates, projection, and timing would be reflected in the environmental
risk premium added to the unimpaired property or equity yield rate (risk effect). Use effects can be
analyzed by evaluating the highest and best use of the subject contaminated property in an impaired
and unimpaired condition. Risk effects, on the other hand, are derived from the perceived environmental
risk and uncertainty related to the property's environmental condition. Measuring this element usually
requires more sophisticated, less direct techniques.
Contamination may also have no effect on value. The influence of environmental impairment on real
property value must always be found in the marketplace. Appraisers should be cautioned that, while
formulaic approaches exhibit a structural logic and may be easy to explain, the market does not always
respond in the same manner.
For further information, see Thomas O. Jackson, "Appraisal Standards and Contaminated Property
Valuation", The Appraisal Journal (April 2003); Thomas O. Jackson, "Methods and Techniques for
Contaminated Property Valuation", The Appraisal Journal (October 2003); William N. Kinnard Jr. and
Elaine M. Worzala, "How North American Appraisers Value Contaminated Property and Associated
Stigma", The Appraisal Journal (July 1999); Richard J. Roddewig, editor, Valuing Contaminated Property:
An Appraisal Institute Anthology (Chicago: Appraisal Institute, 2002), Larry O Dybvig, Contaminated
Real Estate; Implications for Real Estate Appraisers; Appraisal Institute of Canada, 1992.

Š••ȱ–’—Ž›Š•œȱŒ˜—Š’—Žȱ’—ȱ˜›ȱ‹Ž•˜ ȱ‘Žȱœž›ŠŒŽȱ˜ȱŠȱ™›˜™Ž›¢ȱ’œȱŠœȱ’–™˜›Š—ȱ
Šœȱ˜ —Ž›œ‘’™ȱ˜ȱ‘Žȱ•Š—ȱ’œŽ•ǯȱ’—Ž›Š•ȱ›’‘œȱ–Š¢ȱ‹Žȱ›Š—Žȱ ’‘ȱœž›ŠŒŽȱ
›’‘œȱ˜›ȱ ’‘˜žȱœž›ŠŒŽȱŽ—›¢ȱ‹ŽŒŠžœŽȱ‘Žȱ–’—Ž›Š•ȱŽœŠŽȱ’œȱ‘Žȱ˜–’—Š—ȱ
Ž—Š—ȱ’—ȱ–˜œȱ™›˜Ÿ’—ŒŽœǯȱŠ›’˜žœȱ•ŽŠœŽȱŠ—ȱ˜ —Ž›œ‘’™ȱ›Ž•Š’˜—œ‘’™œȱ–Š¢ȱ‹Žȱ
’—ȱŽěŽŒȱŠ—ȱœ‘˜ž•ȱ‹Žȱ’—ŸŽœ’ŠŽǯȱ’—ŒŽȱœž‹œž›ŠŒŽȱ–’—Ž›Š•œȱŒŠ—ȱ—ŽŸŽ›ȱ‹Žȱ
ž••¢ȱŠ—ȱŠ‹œ˜•žŽ•¢ȱšžŠ—’ꮍȱž—’•ȱ‘Ž¢ȱŠ›ŽȱŽ¡›ŠŒŽǰȱŠ—ȱ‘Ž’›ȱŽ¡Ž—ȱŠ—ȱ

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 10.26 The Appraisal of Real Estate – Third Canadian Edition

šžŠ•’¢ȱŠ›Žȱœž‹“ŽŒȱ˜ȱ–Š—¢ȱŸŠ›’Š’˜—œǰȱŠ™™›Š’œŽ›œȱœ‘˜ž•ȱ›ŽŒ˜—’£Žȱ‘Žȱ›’œ”œȱ
Š—ȱž—ŒŽ›Š’—’ŽœȱŠœœ˜Œ’ŠŽȱ ’‘ȱ–’—Ž›Š•ȱ™›˜™Ž›’Žœǯȱȱ’œȱŠ•œ˜ȱ’–™˜›Š—ȱ˜ȱ
›Ž–Ž–‹Ž›ȱ‘Šȱ‘ŽȱŠŒ’Ÿ’¢ȱ˜ȱ–’—Ž›Š•ȱŽ¡›ŠŒ’˜—ȱ’œȱŠȱ‹žœ’—ŽœœȱŠŒ’Ÿ’¢ȱŠ—ȱ
‘Šȱ›ŽŠ•ȱ™›˜™Ž›¢ȱ’—Ž›Žœœȱ–žœȱ‹ŽȱœŽ™Š›ŠŽȱ›˜–ȱ‘˜œŽȱ˜ȱŠȱ‹žœ’—Žœœǯ
yȱ —Š™™Š›Ž—ȱ Ž—Ÿ’›˜—–Ž—Š•ȱ ‘Š£Š›œǯȱ •‘˜ž‘ȱ ‘Žȱ Ž—Ÿ’›˜—–Ž—Š•ȱ •’Š‹’•’Ȭ
’Žœȱ Šœœ˜Œ’ŠŽȱ  ’‘ȱ ’—žœ›’Š•ȱ ™•Š—œȱ Š›Žȱ  Ž••ȱ ”—˜ —ǰȱ –Š—¢ȱ ˜ȱ ‘Žȱ œŠ–Žȱ
•’Š‹’•’’Žœȱ–Š¢ȱ‹Žȱ™›ŽœŽ—ȱ’—ȱ˜‘Ž›ȱ™›˜™Ž›’Žœǯȱ—ŸŽœ˜›œȱŠ—ȱŠ—Š•¢œœȱŒŠ——˜ȱ
Šœœž–Žȱ ‘Šȱ ›ŽŽ—ȱ ›ž›Š•ȱ ™›˜™Ž›’Žœȱ ‘Šȱ Š™™ŽŠ›ȱ Œ•ŽŠ—ȱ Š›Žȱ ŠŒžŠ••¢ȱ ›ŽŽȱ ˜ȱ
Ž—Ÿ’›˜—–Ž—Š•ȱ •’Š‹’•’’Žœǯȱ —ȱ ‘Žȱ ŗşŚŖœȱ Š—ȱ ŗşśŖœǰȱ Š›–Ž›œȱ Œ˜––˜—•¢ȱ žœŽȱ
ŒŠĴ•ŽȱŸŠœǰȱ’ǯŽǯǰȱ›Ž—Œ‘ŽœȱꕕŽȱ ’‘ȱžŽ•ȱ˜’•ȱ‘›˜ž‘ȱ ‘’Œ‘ȱŒŠĴ•Žȱ Ž›Žȱ•Žȱ˜ȱ
›’ȱ‘Ž–ȱ˜ȱ–’ŽœȱŠ—ȱœ–Š••ȱ’—œŽŒœǯȱ‘ŽȱžŽ•ȱ˜’•ȱ Šœȱ˜Ž—ȱ›ŽŠŽȱ ’‘ȱȱ
Š—ȱ˜‘Ž›ȱ™Žœ’Œ’Žœǯȱ‘Ž—ȱ‘’œȱ™›ŠŒ’ŒŽȱŽ••ȱ’—˜ȱ’œžœŽǰȱ‘Žȱ›Ž—Œ‘Žœȱ Ž›Žȱ
œ’–™•¢ȱ ꕕŽȱ ’—ǯȱ —ȱ Š’’˜—ǰȱ Š›–œȱ ˜Ž—ȱ ‘ŠŸŽȱ Š’—ȱ ž—Ž››˜ž—ȱ œ˜›ŠŽȱ
Š—”œȱ‘Šȱ‘Ž•ȱŠœ˜•’—ŽȱžœŽȱ˜ȱžŽ•ȱŠ›–ȱŸŽ‘’Œ•ŽœǯȱŠ›–•Š—ȱ–Š¢ȱŠ•œ˜ȱ‹Žȱ
Œ˜—Š–’—ŠŽȱ‹¢ȱ‘ŽȱŠŒŒž–ž•Š’˜—ȱ˜ȱŽ›’•’£Ž›œȱŠ—ȱ™Žœ’Œ’Žœǯȱ•ȱ›Š’•›˜Šȱ

Figure 10.7: Soil Map

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 26 10/4/2010 10:35:51 AM

 Chapter 10 – Land and Site Analysis 10.27

‹Žœȱ ŒŠ—ȱ Œ˜—œ’žŽȱ Š—ȱ Ž—Ÿ’›˜—–Ž—Š•ȱ ‘Š£Š›ȱ ‹ŽŒŠžœŽȱ ›Š’•›˜Šȱ ’Žœȱ  Ž›Žȱ
Œ˜––˜—•¢ȱœ˜Š”Žȱ’—ȱŒ›Ž˜œ˜ŽȬꕕŽȱ›Ž—Œ‘Žœȱžȱ˜—ȱœ’Žȱ ‘Ž—ȱ›ŠŒ”œȱ Ž›Žȱ
•Š’ǯȱ’–‹Ž›•Š—œȱŠ›Žȱ—˜ȱ›ŽŽȱ˜ȱŒ˜—Š–’—Š—œȱŽ’‘Ž›ǯȱ•ȱž›™Ž—’—Žȱœ’••œȱ
Š›Žȱ˜Ž—ȱ˜ž—ȱ’—ȱŠ›ŽŠœȱ ‘Ž›Žȱ˜›Žœœȱ Ž›Žȱ˜—ŒŽȱ‘Š›ŸŽœŽǯ
yȱ ‘Ž›ȱŒ˜—œ’Ž›Š’˜—œǯȱ‘ŽȱŠ™™›Š’œŽ›ȱ–žœȱŒ˜—œ’Ž›ȱŠ—ȱŠ—Š•¢£Žȱ‘Žȱ•˜ŒŠ’˜—ȱ
˜ȱ  ’••’Žȱ ‘Š‹’Šœǰȱ ‘Žȱ ’œŠ—ŒŽœȱ ›˜–ȱ ™˜™ž•ŠŽȱ Š›ŽŠœǰȱ Š—ȱ ‘Žȱ ™˜Ž—’Š•ȱ
˜›ȱ›ŽŒ›ŽŠ’˜—Š•ȱ•Š—ȱžœŽœȱ’—ȱŸŠ•ž’—ȱŠ›’Œž•ž›Š•ȱ•Š—ǯȱ—ȱŠ™™›Š’œŽ›ȱœ‘˜ž•ȱ
Š•œ˜ȱœž¢ȱœ™ŽŒ’Š•ȱŠ¡ȱ™›˜Ÿ’œ’˜—œǰȱœžŒ‘ȱŠœȱ›ŽžŒŽȱŠ¡Žœȱ˜—ȱŠ›’Œž•ž›Š•ȱ˜›ȱ
›Žœ˜ž›ŒŽȱ™›˜™Ž›’ŽœǯŚȱ—ȱŒ˜‹Ž›ȱ˜ȱŘŖŖŜǰȱ‘Žȱ ˜ŸŽ›—–Ž—ȱ˜ȱŠ—ŠŠȱŠ‹•Žȱ
‘ŽȱŠ—ŠŠȇœȱ•ŽŠ—ȱ’›ȱŒǯȱ‘’œȱŠŒȱ ˜ž•ȱŒ›ŽŠŽȱŠȱ—Ž ȱ•ŽŠ—ȱ’›ȱŠ›ȱ’—ȱ
‘ŽȱŠ—Š’Š—ȱ—Ÿ’›˜—–Ž—Š•ȱ›˜ŽŒ’˜—ȱŒȱ˜ȱœ›Ž—‘Ž—ȱ‘Žȱ˜ŸŽ›—–Ž—ȇœȱ
Š‹’•’¢ȱ˜ȱ›ŽžŒŽȱŠ’›ȱŽ–’œœ’˜—œǰȱ›Žž•ŠŽȱ’—˜˜›ȱŠ—ȱ˜ž˜˜›ȱŠ’›ȱ™˜••žŠ—œȱ
Š—ȱ›ŽŽ—‘˜žœŽȱŠœŽœǰȱŠ—ȱ›Žšž’›Žȱ‘ŽȱŽœŠ‹•’œ‘–Ž—ȱ˜ȱ—Š’˜—Š•ȱŠ’›ȱšžŠ•’¢ȱ
˜‹“ŽŒ’ŸŽœǯȱ
˜ ŽŸŽ›ǰȱ ‘ŽœŽȱ ™›˜™˜œŽȱ Œ‘Š—Žœȱ  ˜ž•ȱ —˜ȱ Š••˜ ȱ ˜›ȱ ‘Žȱ
Œ›ŽŠ’˜—ȱŠ—ȱœŠ•Žȱ˜ȱ™˜••ž’˜—ȱ›’‘œǯȱ—ȱŒ˜—›Šœǰȱ‘Žȱȱ•ŽŠ—ȱ’›ȱŒȱ˜ȱŗşşŖȱ
›Žž•ŠŽȱ‘Žȱ˜——ŠŽȱ˜ȱŠŒ’Ȭ›Š’—ȱŽ–’œœ’˜—œȱ‘Šȱœ–˜”ŽœŠŒ”ȱ’—žœ›’Žœȱ–Š¢ȱ
›Ž•ŽŠœŽȱ’—ȱ™›˜™˜›’˜—ȱ˜ȱ™•Š—ȱœ’£Žǯȱ—žœ›’Žœȱ‘Šȱ˜ȱ—˜ȱžœŽȱ‘Ž’›ȱž••ȱ•ŽŠ•ȱ
Š••˜ Š—ŒŽȱŒŠ—ȱ›Š—œŽ›ȱ˜›ȱœŽ••ȱ‘Ž’›ȱ™˜••ž’˜—ȱ›’‘œȱ˜ȱ˜‘Ž›ȱ’—žœ›’Žœǯȱ’—ŒŽȱ
ŗşşřȱ™˜••ž’˜—ȱ›’‘œȱ‘ŠŸŽȱ‹ŽŽ—ȱœ˜•ȱ˜—ȱ‹˜‘ȱ‘Žȱ‘’ŒŠ˜ȱ˜Š›ȱ˜ȱ›ŠŽȱŠ—ȱ
’—ȱ‘Žȱ˜ěȬŽ¡Œ‘Š—Žȱ™˜••ž’˜—ȱ›’‘œȱ–Š›”Žǯ

4
For a thorough discussion of the methods used to describe and analyze the significant characteristics of land used for
agricultural production, see American Society of Farm Managers and Rural Appraisers and Appraisal Institute, The
Appraisal of Rural Property, 2nd ed. (Denver and Chicago, 2000).

©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 27 10/4/2010 10:35:51 AM

 ©Copyright 2010 by the Appraisal Institute of Canada and the Appraisal Institute. All rights reserved.

R1ARE10.indb 28 10/4/2010 10:35:51 AM