However, one can hold oneself out as an appraiser without membership in the Appraisal Institute of Canada. Scrutiny of an appraiser's qualifications and experience is essential when considering an appraiser's liability. Appraisers may be liable in tort or contract to the parties who retain them, usually lenders or purchasers. Or, they may be liable to third parties where the third parties have relied on the appraisal. It is unlikely that an appraiser would be found liable solely on the basis of an erroneous opinion of value, even if the opinion was demonstrated to be clearly wrong.
Appraisals are opinions and differences in the opinions of real estate appraisers are common.
However, statements in the appraisal with respect to the property which are inaccurate, may result in liability if the appraiser ought to have ascertained the true facts. Such a situation might involve the size of the property, the zoning and use of the property, and the potential for development of the property. Also, an appraiser may be liable for failing to undertake necessary and proper inquiries with respect to the property. McDougall failed to observe or to note that the basement of the house had no floor other than its natural clay. He failed to properly assess the fact that the few new houses built in Craik in the last few years were at the opposite end of the town and on the opposite side of the railway.