Appraisal groups finalize memorandum of understanding. (Industry and Institute News).

Four major valuation organizations finalized and signed a memorandum of understanding in Chicago May 3, which sets forth areas in which they will engage in cooperative efforts. The Appraisal Institute, American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, and Appraisal Institute of Canada plan to work collectively on various issues and projects to influence the development of the valuation industry and profession.

"The alliance set forth in the memorandum is a significant move," said Appraisal Institute President Alan E. Hummel, SRA. "We are very pleased that this agreement has been made, and we are honored to have an opportunity to work with these distinguished organizations on issues, policies and projects that are important to our members and the valuation profession at large."

The memorandum of understanding is intended to encourage and further extend dialog and cooperation between the organizations on matters of mutual interest, including supporting the work of the International Valuation Standards Committee, the newly formed World Association of Valuation Organizations and the Centre for Advanced Property Economics. In addition the groups have pledged to explore areas in which they can work together to eliminate duplication and to enhance the quality of the profession, such as education, member services, conferences and professional services.

The organizations have agreed to "work together and build a strong relationship in order to promote and enhance the development of the real estate valuation profession; recognize the need for open communication on matters of mutual interest, to ensure an accurate, consistent and reliable working environment; and work together where appropriate when dealing with government and other entities on issues that affect the organizations."

Hummel stated, "This memorandum does not create a partnership, joint venture or agency relationship between the organizations, nor does it limit any of the participants from exercising full authority with respect to their own members. What this agreement does do is create a wonderful opportunity for our organizations to work together, providing a strong voice in the valuation and valuation consulting industry."

The agreement is valid for one year, after which the groups can evaluate the activities to see if amendments need to be made. It is automatically renewable annually unless written 90-day notice is given by a participating organization.