Policies and Procedures for the United States

July 2014

CBRE Valuation and Advisory Services

Practice Area Guidelines

Policies and Procedures for the United States

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | TABLE OF CONTENTS

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July 2014

TABLE OF CONTENTS

1. Foreword/Preface ..............................................................................3

2. Best Practices ....................................................................................4

3. Organizational Charts .......................................................................8

4. Contracting For Services ....................................................................9

5. Litigation ........................................................................................ 18

6. Managers ....................................................................................... 22

7. Appraisers ...................................................................................... 26

8. Appraisal Process And Procedures .................................................. 34

9. Human Resources Policies And Procedures ..................................... 35

10. Training: Administration, Appraisers and Management................... 48

11. Other Valuation Services ................................................................ 51

12. Appendix ....................................................................................... 52

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | FOREWORD/PREFACE

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1. FOREWORD/PREFACE

The policies and procedures contained herein apply to all valuation and consulting work

undertaken by CBRE Valuation and Advisory Services (VAS) employees in the United States.

This document replaces all prior VAS policies and procedures, whether provided verbally, in

writing, or previously undocumented.

This manual provides guidelines for the VAS practice area. It addresses the professional

practices of Appraisers, Administration and Management within the VAS business line, the day-

to-day administrative operations of the business, contracting for services, human resources

policies, and legal guidelines – including managing conflict and risk, employee training, and

best practices.

All policies and procedures addressed in this manual must be adhered to by all administrative

staff, professionals and managers in the ongoing operations of the VAS business line across

the country.

1.1 Practice Area Guidelines Committee

The Practice Area Guidelines (PAG) Committee, Elizabeth Champagne and Michael Rowland,

will seek input from VAS management, professionals and administrative staff relative to the

contents of this manual. The Committee will consider all input, making revisions as necessary,

and will continue to amend the manual as policies change due to evolving regulatory

requirements, federal or state legislations and/or CBRE policies and procedures, etc.

1.2 Living Document

This is a “living document” and must always be considered a work in progress where company

policies, legislation and regulatory changes (i.e., USPAP updates) will impact our day-to-day

operations and practices. The Practice Area Guidelines Committee is scheduled to update this

on an annual basis at a minimum.

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | BEST PRACTICES

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2. BEST PRACTICES

2.1 Client Communication and Templates

Communication with the client is of the utmost importance throughout every stage of the

appraisal process. Appraisers must contact the client to introduce themselves within 24-48

hours of the job being assigned. They also need to contact the property contact (if different

from the client) within 24-48 hours to introduce themselves, request property data and

schedule the inspection. This should always be done via email and can be supplemented with

phone calls.

Weekly status reports are to be made to the client in writing. Any delays in receiving

property data or setting up inspections, or client changes in scope of the assignment,

MUST be documented in writing with the client. Establishment of a new due date or fee

MUST be documented in writing with the client, where client acknowledges the

changed scope, fee, timing, etc.

In addition, all client communication should be retained in the work file and copied to

Administration, who tracks the status of all pending jobs in the pipeline. Any changes

to fee, timing and scope must be tracked by the status report and communicated to

Management.

Utilize Client communication templates to quickly generate email correspondence to

client.

2.2 Quality Control

All appraisal reports and consulting deliverables must be reviewed by Management and

include at least one MAI-designated signatory. The review function must be fully performed in

order to provide excellent client service and superior products. All reports and consulting

deliverables must be spell- and grammar-checked by the Appraiser prior to submitting it to

Management for review. The Appraiser and then the Reviewer must also review the

engagement letter and the data sheets for accuracy and to insure that all client-specific

guidelines and requirements have been met.

2.3 Risk Management

Refer to the Risk Management Flowchart for guidelines when contracting an engagement. All

engagements must be carefully considered and processed with the least amount of risk for the

company.

2.4 Conflict Management

All aspects of conflict – internal and external – must be carefully managed. Internal conflict

checks must be performed on every assignment by checking all possible resources and

databases. In order to take on a new assignment, both the client and the property need to be

researched. Have any other CBRE service lines serviced this client or property in the past three

years? Is this client on the “Full Fee Retainer Client” list? Would there be any perceived conflict

from both an internal or external point of view? Can this conflict be managed and how? The

Full Fee Retainer Client List is located on iChannel >> .Library \ Client Documents \ ADMIN

folder.

https://ichannel.cbre.com/wc.dll?CADoc~CADocLogIn~vasroot


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2.5 Technical Skills

It is imperative that the appraisal professionals with the right skill set, both by property type

and by geographic competency, perform the assignment. Additionally, the Appraiser needs to

have access to the databases and materials which would provide the best analysis and service

to the client. All Appraisers need to be proficient in the CBRE report templates and utilize the

full array of data available to provide the best valuation analysis.

Appraisers who specialize in and benefit from certain properties or geographies must maintain

an ongoing dialogue with market participants, including CBRE brokerage and competing

brokerage houses that are active with this market. Appraisers must keep apprised of the

current lease and sale transactions as well as pending lease and sale transactions and listings

which may materially impact their value conclusions.

Professionals must keep current in their technical skills and expertise, including taking classes

and attending professional group seminars and presentations, in addition to reading articles

and news stories that impact real estate and the economy. Additionally, all licenses and

designations need to be actively maintained. Advanced knowledge of Word, Excel and Argus

software must be obtained and maintained.

2.6 Specialty Practice Groups

Those Appraisers specializing in specific property types, such as office, retail, industrial and

multifamily, need to be the “go to” professionals in their markets for assisting clients. These

professionals must communicate regularly with the brokers specializing in their property type(s)

and market(s). It is mandatory for these professionals to be included on the monthly national

conference calls hosted by the various CBRE specialty groups to increase their exposure and

gain market knowledge.

Additional specialty groups include hotel, land, healthcare, seniors housing, student housing,

gas stations, etc. Additional VAS Specialty Practice Groups include value-add services such as

litigation support, partial interest valuation, tax appeal work, eminent domain and myriad

consultative services including market studies, rent analysis, highest and best use studies and

feasibility studies, to name a few.

The more specialized a professional becomes, the greater the potential demand for this

Appraiser’s expertise and knowledge. Clients demand the best person for the job and it

behooves the company to utilize those professionals with the greatest skill set. Those

professionals who are known as industry specialists will garner a greater level of respect, be

asked to perform the greatest amount of assignments by clients and typically are recognized by

the market as industry leaders.

2.7 Maintaining Updated Profiles and Qualifications

It is the responsibility of each appraisal professional to maintain updated profiles with a current

headshot, qualifications and appraisal license(s). These are maintained in the iChannel Library

as well as on the shared network in your respective regional offices.



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2.8 Competency

State licensing requires all professionals to conform to USPAP. The competency provision within

USPAP insists that only a competent Appraiser can perform an appraisal. If a professional is

not competent within a particular geography or product type, he or she must decline the

assignment or otherwise take the necessary steps towards becoming competent in doing the

appraisal. If you are assigned a job for which you do not believe you are professionally

competent, you must immediately inform the assigning Manager of this so that the job can be

performed correctly. Managers can choose to reassign the job or bring in the necessary

expertise to ensure the assignment is performed competently.

2.9 RISE Values

The company and all employees are expected to promote and exemplify the ideals of Respect,

Integrity, Service and Excellence. We expect these values to guide your actions at all times.

Failure to adhere to CBRE's RISE values will result in disciplinary action up to and including the

termination of your employment.

2.10 Mentoring Internally and Externally

The appraisal profession has always been one of “learning on the job” and being mentored by

a senior Appraiser. Although Appraisers take courses at colleges and professional

organizations, such as the Appraisal Institute, it is widely acknowledged that there is no

substitution for experience in the field under the guidance of a senior Appraiser.

We encourage all senior professionals to mentor junior staff, both on a structured and

compensated basis, as in taking on a one-third junior Appraiser “under your wing”, or on an

ongoing informal basis with your office mates. Appraisals are best done in collaboration with

others based upon an open exchange of ideas. It is important to foster this attitude within each

CBRE office as it helps all Appraisers become more proficient. Additionally, there are

numerous opportunities to mentor other appraisers professionally by participating in

professional organizations’ mentoring programs, typically on a voluntary basis. All of these

mentoring opportunities enable you to help others, increase your exposure in the industry and

enhance your skills.

See Appraisal Process and Procedure.

2.11 Representing CBRE Internally and Externally

When meeting with internal (CBRE) and external clients, you are at all times representing the

company. Whether you are meeting a property contact on a site inspection or attending the

CBRE monthly brokers’ meeting in your office, you must present yourself professionally in

accordance with our corporate culture and RISE values.

Get involved with as many people in the industry as possible. Develop relationships, work on

professional committees and boards, participate on panels and accept speaking engagements.

All of these activities will provide additional exposure for you and for CBRE. Please refer to

Corporate Media Policy.

http://marketing.cbre.com/Houston/Valuation/POP/VAS_AppraisalProcessProcedures_June2014.pdf

https://navigator.cbre.com/EN/Departments/Communications+Marketing/Public+Relations/Public+Relations+Policy.htm


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2.12 Generating Revenues

As you establish yourself in the appraisal profession and implement the Best Practices and RISE

values, you will typically find that clients – both old and new – will seek you out to order work.

It is a natural progression in this industry. With increased exposure and reputation, clients will

trust you more and often times prefer to deal directly with an Appraiser on the ground than

with Management.

2.13 New Client Accounts and Maintaining Existing Accounts

Generating new and maintaining existing client accounts is an essential Best Practice. All senior

professionals and Management need to continually look for adding new clients to our client

base. New clients are found in various ways, but are best found by networking and attending

as many industry events, seminars, conventions and conferences as possible. Maintaining

existing accounts will naturally occur by providing excellent client service and quality reports.

Make the extra effort to follow up with your client for feedback after services have been

completed. This will not only increase your client relationship but help hone your skills for the

next time.

2.14 Client Service

The primary goal of the VAS business is to provide best-in-class service to our clients at all

times. This objective needs to be emphasized for all CBRE employees as well. Excellent client

service sets us apart from our competitors and will continue to differentiate us from the rest of

the appraisal firms in the country.

Strive to understand what your competitors are delivering in terms of service quality, fees and

timing – and commit to doing it better. Maintain market share and increase dominance in your

respective markets. Strive to be at the top of your clients’ lists as well as the “go to” people in

your offices. Demonstrate that you are always ready and able to assist others, available and

present in the office, and committed to being the best in your area of expertise. If you hold

yourselves to these expectations, your business will grow organically and you will enjoy long,

successful careers in appraisal.

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | ORGANIZATIONAL CHARTS AND VAS OFFICES

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3. ORGANIZATIONAL CHARTS

3.1 CBRE Global Operational Structure

http://library.cbre.com/xpedio/groups/public/documents/cbresource_mrk_008/cbre022737.pdf

3.2 CBRE Americas Operational Structure


3.3 VAS Management Chart

http://www.cbre.us/services/valuationadvisory/AssetLibrary/VAS_ManagementChart.pdf

3.4 VAS Locations

http://www.cbre.us/services/valuationadvisory/AssetLibrary/VAS_Locations.pdf

3.5 VAS Regional Contacts

http://www.cbre.us/services/valuationadvisory/AssetLibrary/VAS_RegionContacts.pdf

3.6 VAS Office Contacts

http://www.cbre.us/services/valuationadvisory/AssetLibrary/VAS_OfficeContacts.pdf







http://library.cbre.com/xpedio/idcplg?IdcService=GET_FILE&dID=63900&dDocName=CBRE025656





CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | PORTFOLIO PROCEDURES AND POLICY

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4. CONTRACTING FOR SERVICES

4.1 Risk Management in Contracting

The initial question which should be addressed by all persons doing contracting is whether or

not an assignment is appropriate for CBRE Valuation and Advisory Services to complete. The

Engagement Flow Chart below gives guidance on determining whether or not to accept an

assignment:

VAS Engagement Flow Chart


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4.2 Minimum Requirements

It is mandatory to utilize the most recent CBRE contract on iChannel for CBRE generated

engagements. All contracts should contain the following information:

Date

Identification of subject property

Intended use

Intended user

Reliance Language

Scope of work

Type of product or report

Fee to be charged

Date of delivery

Number of copies of report, but electronic delivery is preferred

Indemnification clause

Arbitration clause

List of information to be provided by client

Signature and state license certification number of CBRE contracting officer

Signature of client and date contract is accepted

Charges for additional work

Additional charges for travel costs

Effective dates of proposal

4.3 Authorization

All contracts to provide appraisal services will be in writing and will be signed by the

President, an SMD, MD, or an Appraiser with an MAI designation or a state license

with a Vice President or higher title and the client prior to commencement of the

assignment. Only the President, SMD or MD may sign contracts with a value greater

than $25,000. It is the responsibility of the CBRE signatory to confirm that the person

signing on behalf of the client has authority to do so. In cases where several entities

are involved (i.e., law firm and its client) it is critical that the party who will be

responsible for payment either sign the contract or sign a separate document

acknowledging financial responsibility.

If master contracts are used, the initial appraisal contract should include all of the

above minimum requirements. Additional inclusions must include accurate names for

client-approved correspondents with a required approved client correspondent

signature on the master contract.

If master contract signatures for all client correspondents are impractical, separate

contracts must be executed by all client correspondents and must reference the master

contract.



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No assignment will be logged into the VIEW, assigned to an Appraiser, or begun

without a written, enforceable contract. Electronic delivery of contract is acceptable.

4.4 Client Engagement Letters/Contracts

Many engagement letters or contracts are prepared by the client. The following procedure

should be used for all new client contracts and reliance language:

Step one:

Search VIEW to confirm if the client has already been approved. Retainers are not required for approved clients. Use the “Client/Search Client” tool. Client types where this is not required are:

Any federally regulated lender.

Governmental entities (unless there is an unusual requirement in the contract).

If we have not been engaged by an approved client in the prior 5 years, they are considered a

new client and Step Two must be completed.

Step two:

Review any new client engagement letters with the following items in mind.

Property – Review Engagement Flow Chart

Property Type:

Value Premises:

Property Risk Profile: (High/Med/Low)

Client – Review Client Types

Client Type:

Client Risk Profile: (High/Med/Low)

Additionally, Reliance Language, Client/Report Context and Appraiser Competency should all

be considered.

Client master agreements should be reviewed when revised by the client and sent to CBRE VAS

for signature. Client engagement letters should be reviewed by management at least once

every two years to ensure the terms and conditions and risk profile is acceptable to CBRE VAS.

Step three:

If high risk is indicated in any of the above categories, the information should be forwarded to management and possibly to the following legal staff for review:

Mardi K. Milia Senior Counsel - Central Division T 630 573 1296 [email protected]

John L. Mauk

Senior Counsel - Tri State

T 516 714 2703

[email protected]

Griswold Ware Senior Counsel - Eastern Division T 630.573.7109 [email protected]

Alan Wang Senior Counsel - Western Division T 213.613.3002 [email protected]

https://vas.cbre.com/

http://marketing.cbre.com/Houston/Valuation/POP/ClientTypes.doc

mailto:[email protected]





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All Client provided contracts must be signed using the following convention: “YOUR NAME,

TITLE, AS AGENT FOR CBRE GROUP, INC.”

No assignment will be logged into the VIEW, assigned to an Appraiser, or begun without a

written, enforceable contract. Electronic delivery of contract is acceptable. The minimum

information in the billing file for a client generated contract is:

Date of request/contract

Identification of subject property

Intended use

Intended user

Type of product or report

Fee to be charged

Date of delivery

In the event the client responds with an email acceptance of the fee and timing for a contract

or RFP for an assignment, we should sign the contract or RFP, return it to the client as a PDF

and save it in the billings file. If the client responds with an email to an email bid, save the

email and a PDF copy in the billings file. It must contain the minimum requirements.

4.5 Bidding

It is the responsibility of the receiving office (office that will perform the appraisal) to disclose if

CBRE previously appraised the property in question at the time the bid is made. If the manager

bidding on the assignment bypasses the receiving office for a bid, then it is the responsibility of

the manager submitting the bid to disclose if CBRE previously appraised a property at the time

the bid is made. This can be determined by checking with the VIEW.

For many clients (i.e., Bank of America, Wells Fargo, etc.), it is their policy to disclose at the

time the bid is being made if any other CBRE service line is providing real estate services for

the property in question. This can also be determined by checking third party resources such as

CoStar, REIS, LoopNet, Google, etc.

4.6 Reliance Language

When using and/or adding client’s reliance language to our contracts and reports, the

borrower and/or equity participant should not be allowed to rely on the report, unless proper

indemnity and limitation of liability is provided by this class of users. See sample Approved

Reliance Language on iChannel >> .Library \ Client Documents.

The following steps should be used for all new clients and reliance language:

Step one

Search VAS to confirm the client has not been approved by another office. Use the “Client/Search Client” tool. Client types where this process is not required include:

Any federally regulated lender.

Governmental entities (this type of client may have specific requirements that

should be reviewed and approved).



http://www.costar.com/

http://www.reis.com/

http://www.loopnet.com/

http://www.google.com/



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Step two:

If the client exists, search the Client Documents topic folder on the Library site to

determine if the reliance language has already been approved.

If the reliance language is not found or if it has changed, submit the following items to

the Senior Managing Director or Managing Director for approval.

Reliance

Reliance Language:

Intended Use:

Intended Users:

Equity/Borrower: (Yes/No)

Indemnification from Equity/Borrower: (Yes/No)

Client/Report Context

Please provide a general outline relative to the origination of the client and

the property, if available.

As an example, if the “new” client is a prior client who now works at a new

institution, provide a sample of prior approved reliance language at the prior

firm and the proposed language at the new firm (i.e. in many instance the

language is effectively identical to existing approved language).

If high risk is indicated in any of the above categories, the information should

be forwarded by management to the legal staff for review.

4.7 Retainer

A retainer should be obtained prior to commencement of any work from all clients

except those clients that the SMD or MD has determined to have shown a pattern of

timely payment of invoices. The percentage of the retainer may vary based on the

contracting party’s creditworthiness as determined by the SMD/MD. When contracting

with firms that are accustomed to obtaining 100% retainers themselves (i.e., law firms),

a 100% retainer should be obtained.

Receipt of retainer (including date received) should be noted in writing on the contract

and/or in the VIEW. If the contract requests a retainer and the SMD/MD has since

waived the retainer, SMD/MD should initial a note approving the waiver on the

contract. If a requested retainer is not submitted, the job will not be entered into the

VIEW, the job will not be assigned to an Appraiser, and the job will not commence

until this occurs.

4.8 CBRE Standard Contract

A copy of the most current standard contract is maintained on iChannel and should be used.

Any significant changes from this contract must be authorized by the SMD or President and

may need to be reviewed by the Legal Department.





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4.9 Terms and Conditions

Clause #15

LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW,

OR SECTION 17 IF USED, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER

FOR ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES.

EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR 17 IF APPLICABLE, IN

NO EVENT SHALL EITHER PARTY’S TOTAL LIABILITY TO THE OTHER FOR DAMAGES

UNDER THE AGREEMENT EXCEED, IN THE AGGREGATE, THE GREATER OF EITHER THE

AMOUNT OF THE TOTAL FEES PAID TO APPRAISER UNDER THIS AGREEMENT, OR TEN

THOUSAND DOLLARS ($10,000). BY SIGNING THIS AGREEMENT, CLIENT INDICATES

ITS UNDERSTANDING OF THE LIABILITY LIMITATION HEREIN AND AGREES TO ABIDE BY

SUCH LIMITATION. THIS LIABILITY LIMITATION SHALL NOT APPLY IN THE EVENT OF A

FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION THAT

SUCH LIABILITY IS THE RESULT OF A PARTY’S GROSS NEGLIGENCE, FRAUD OR WILLFUL

MISCONDUCT.

Existing Aggregate Limitation of Liability is $10,000 and has been approved to move up to

$1,000,000 (One Million). Amount exceeding $1,000,000 needs approval from VAS

President. To waive Limitation of Liability, you must have SMD approval along with

understanding of intended use and user of report, and risk profile of client and property

type. If risk profile of client and/or property type is high (per VAS Engagement Flow

Chart), then approval from VAS President is necessary.

Clause #17

In the event Client incorporates or references the Appraisal Report, in whole or in part, in

any offering or other material intended for review by other parties, Client shall indemnify,

defend and hold each of the Indemnified Parties harmless from and against any Damages

in connection with (i) any transaction contemplated by this Agreement or in connection

with the appraisal or the engagement of or performance of services by any Indemnified

Party hereunder, (ii) any actual or alleged untrue statement of a material fact, or the actual

or alleged failure to state a material fact necessary to make a statement not misleading in

light of the circumstances under which it was made with respect to all information

furnished to any Indemnified Party or made available to a prospective party to a

transaction, or (iii) an actual or alleged violation of applicable law by Client (including,

without limitation, securities laws) or the negligent or intentional acts or omissions of Client

(including the failure to perform any duty imposed by law); and will reimburse each

Indemnified Party for all reasonable fees and expenses (including fees and expenses of

counsel) (collectively, “Expenses”) as incurred in connection with investigating, preparing,

pursuing or defending any threatened or pending claim, action, proceeding or

investigation (collectively, “Proceedings”) arising therefrom, and regardless of whether

such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter

into any waiver, release or settlement of any Proceeding (whether or not any Indemnified

Party is a formal party to such Proceeding) without the prior written consent of Appraiser

(which consent will not be unreasonably withheld or delayed) unless such waiver, release

or settlement includes an unconditional release of each Indemnified Party from all liability

arising out of such Proceeding.


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4.10 Cancellation

Cancellation of contracts should be in writing and maintained in the billings file.

4.11 Additional Services to Clients

Extra Copies – When clients request additional copies of reports, it is recommended the client

be charged $250 for each color copy or $100 for each black and white copy. This is at the

SMD/MD discretion. When invoicing a client for extra copies, the entire allocation should go to

the profit center as an expense reimbursement.

4.12 Indemnification Letter

Ask for Indemnification in the following circumstances:

Single asset securitization (144a).

Single asset or group of assets appraised by us is the sole collateral of a public offering such as public bond financing.

Our report will be filed as part of security offering on a public exchange, domestic or international.

Any time our report is to be used to raise equity against the appraised asset.

When the purpose of an appraisal is for one of the above situations where third

parties may rely on our opinion of value, an indemnity letter must be signed by

the client. A copy of the standard indemnity letter is maintained on iChannel.

Any significant changes from this contract must be authorized by the SMD or

President and may need to be reviewed by the Legal Department.

VAS Indemnification Letters

Indemnification Form

Indemnification - Securitization Form

This differs from loan securitization because our appraisals only cover some of the properties in the pool and loan default risk is spread across the pool.

Any modification to the language in the indemnity agreement is not preferred and VAS is not in a position to modify, without consulting the legal department.

4.13 Re-Certification/Reliance Letter

Per USPAP, reliance letters are no longer prepared and have been replaced by a new

engagement which USPAP requires if there is a new intended use or user. A new contract for a

new assignment must be issued and signed by both parties (CBRE and the New Client). The

“old” or existing report, prepared for Client A, may be issued to the new client B who wants to

rely on the “old” report utilizing the old date of value. This “new” report prepared for Client B

must be issued with a current date on the letter of transmittal, along with the new client name

(user) and intended use. All confidential property data must be requested from and provided

by the new client.

4.14 Confidentiality Agreements

Confidentiality Agreement

VAS Appraisers are bound by USPAP, State Licensing, FIRREA regulations and

interagency guidelines in most assignments. Our professional designation and


http://marketing.cbre.com/Houston/Valuation/POP/VAS_IndemnificationForm_03-01-12_ACW-10-10-2012.doc

http://marketing.cbre.com/Houston/Valuation/POP/VAS_IndemnificationSecuritizationForm_03-01-12.doc

http://library.cbre.com/xpedio/idcplg?IdcService=GET_FILE&Rendition=primary&RevisionSelectionMethod=LatestReleased&dDocName=CBRE044460&allowInterrupt=1


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applicable regulations all carry confidentiality requirements which only allow disclosure

to the client and intended users. We are prohibited from sharing information internally

or externally. Frequent institutional users of appraisals know this and accept it, and

standard agreements with financial institutions may have clauses addressing

confidentiality. Our professional standards for all intents and purposes require the

same level of confidentiality that specific agreements seek but without any prescribed

liability or recourse.

From time to time we are asked to sign a specific confidentiality agreement, usually in

the following situations:

Owner of the property is concerned about the disclosure of property information to other CBRE Business Units.

There is a pending sale of the property.

Property is in some type of litigation.

Standard practice for some asset managers.

In these situations we are usually provided with a document that is designed for the

dissemination of property information for prospective buyers or investors in the

transaction, and we need to rewrite it to reflect our appraisal assignment and remove

language concerning investor or buyer responsibilities. In litigation or bankruptcy

assignments, it will vary by attorney.

Critical points we need in a Confidentiality Agreement are:

Absolute right to retain copies of documents to comply with state licensing laws and professional regulations.

Protect our other business unit’s right to conduct normal business concerning the property, acknowledging our restriction from sharing information but also acknowledging that other business units have other sources and may already be in possession of related material.

Should be binding on VAS only and not other CBRE business units

Language that we don’t want in the document:

Statements that assume CBRE actions immediately harm the client.

Assumption that we are immediately liable for monetary damages.

If in doubt, forward the Confidentiality Agreement to legal for review.

When we are asked to provide our own document, which is the preferable option, we

should use the one prepared and approved by CBRE legal department.

4.15 Intended User – Limitation of Liability

In order to add an intended user, before the assignment is completed, who wishes to

rely on the report, an Intended User Limitation of Liability must be signed by the new

intended user. This form is used when a new engagement letter is not realistic. This

allows the new intended user to rely on the report and limits the risk liability and

exposure incurred by CBRE. When this form is used, ensure that the limitation amount

does not exceed the limitation amount in the client’s agreement.

http://marketing.cbre.com/Houston/Valuation/POP/Intended-User_Limitation-of-Liability-Form_08-01-12.doc


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4.16 Non-Reliance and Release

When a client asks us to provide a copy of the report to a party who will not be an

intended user (informational purposes only), a Non-Reliance and Release must be

signed by the recipient. By signing, the party acknowledges that it is not relying on the

report and agrees to release all liability.

4.17 Securities Offering Indemnification Agreement

When a client wants to include information from the Appraisal for use in a securities

offering, CBRE will consent to the use of the Appraisals or any information therein with

the offering, if the Offering Indemnification Agreement is executed by the client.

4.18 Privacy Policy

http://www.cbre.com/EN/Pages/legal/privacypolicy.aspx

SOBC – confidentiality with our clients is mentioned specifically on page 14 of the

document, and addressed sporadically throughout. The link for the outwardly facing

version is here: http://www.cbre.com/sobc

http://marketing.cbre.com/Houston/Valuation/POP/Non-Reliance_and_Release-ACW_8222012.doc


http://www.cbre.com/EN/Pages/legal/privacypolicy.aspx

http://www.cbre.com/sobc

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | MANAGERS

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July 2014

5. LITIGATION

The following section contains the additional policies and procedures for litigation support

related work.

5.1 Conflict Check

For assignments related to expert litigation, a conflict check needs to be completed. Send an

email using the following format to !CBRE-Notice of Litigation.

CBRE Valuation and Advisory Services has been contacted to perform expert related services in

connection with a lawsuit involving the following property and parties. Please let VAS know

within 2 days of any conflicts concerning this potential assignment.

Property Address

Party Retaining CBRE

Attorney for Party Retaining CBRE

Opposing Party

Attorney for Opposing Party

Court where matter is pending

Short Description of Dispute/Assignment

5.2 Additional Contract Provisions

While our usual contract contains the following, you need to pay particular attention to:

A clear description of the services you will be providing

Fees – hourly/flat fee/combination of the two. What does the flat fee cover and what do the hourly fees cover. This is necessary to identify what can be billed and when.

If hourly fees, indicate we will bill monthly (this is a GAAP requirement so that we recognize revenue in the proper period)

Is there a cap on the fee? (only include if there is a cap)

What constitutes allowable expenses (especially if they are added to the fee)

Signature of party financially responsible (if a lawyer on behalf of the client, the lawyer needs to understand that his/her signing of the contract puts him/her under obligation to pay if the client does not – otherwise, the lawyer needs to get the client to sign)

It is highly recommended that a retainer or prepayment is required. If a retainer is paid at the beginning of the assignment, the full fee must be paid before delivery of the report.

Additionally an additional retainer is required for additional work (additional research, deposition, testimony, etc) based on an estimate of time.

5.3 Additional Litigation Specific Documentation

The following needs to be contained within the file for all litigation assignments.

Contract properly and clearly outlining services and fees with all proper approvals

Copy of conflict check email

Proof of delivery of any product (if applicable)



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July 2014

Time Log (if hourly fee) which clearly indicates dates and amount of hours when services were rendered (this serves as your POD on hourly assignments and must be turned in monthly with billings)

Copy of invoice (date of invoice must be in the same month that the hourly services are provided)

If there is a cap on fees, you must have additional approval from client to bill above the cap (i.e., addendum to contract or email from client approving)

Copy of any payments

5.4 Subpoenas

A subpoena is a writ by a government agency, most often a court, that has authority to

compel testimony by a witness or production of evidence under a penalty for failure.

There are two common types of subpoena:

1. Subpoena that orders a person to testify before the ordering authority or face

punishment. The subpoena can also request the testimony to be given by phone or

in person.

2. Subpoena that orders a person or organization to bring physical evidence before

the ordering authority or face punishment. This is often used for requests to mail

copies of documents to requesting party or directly to court.

What to do when you receive a subpoena:

1. Internal Notifications - You need to immediately notify, i.e., send a copy of the

subpoena to:

The legal department

Your MD/SMD

2. Read the subpoena! - Once you get a subpoena:

Identify the property and appraisal(s) at issue

Determine:

WHO is asking you to appear

The PARTIES to the case

Whether we did the appraisal for a party to the litigation

Identify what type of subpoena was served

Trial or Deposition

Documents or Testimony or Both

If testimony is requested, determine:

o Expert or Fact Witness

o If they intend to pay you and how much

o Determine who is paying

Identify and calendar initial date noticed for testimony and/or document

production

http://marketing.cbre.com/Houston/Valuation/POP/MonthlyHourlyBillings.xlsx


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July 2014

3. Notify Your Client - With the assistance of the legal department, you’ll need to

contact your client to determine whether your client wants CBRE to comply with the

request or if the client (not CBRE) wants to move to quash the subpoena. If the

client wants to move to quash the subpoena, notify legal IMMEDIATELY.

4. Work with the Legal Department - Coordinate the following with the assistance

of the legal department:

DOCUMENT COLLECTION

Hard copies

o For hard copy documents, assemble all hard copies in your possession or control

o Send via FTP or PDF to legal

Electronic documents

o Identify the custodian(s) of record

o Coordinate with the senior paralegal to collect any documents in electronic form

TESTIMONY

Coordinate with the legal department

TRIAL Subpoena

o Confirm your availability

o Block out on your calendar all possible dates on which you might be required to appear

DEPOSITION Subpoena

o Identify dates on which you are available to appear

5.5 Legal Compliance and Support

The corporate legal department has designated counsel for the VAS division. They include:

Central Division

Mardi Milia

630.573.1296

[email protected]

Eastern Division

Griswold Ware

630.573.7109

[email protected]

Western Division

Alan Wang

213.613.3002

[email protected]

Beverley Lu

213.613.3004

[email protected]






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July 2014

Tri-States

John Mauk

516.714.2703

[email protected]

5.6 Litigation Specialist

For additional information regarding litigation related matters, please contact the Litigation

Practice Leader:

Steve D. DuPlantis, MAI | Senior Managing Director CBRE | Valuation & Advisory Services 2700 Post Oak Boulevard, Suite 250 | Houston, TX 77056 T 713 840 6625 | F 713 840 6649 | C 713 703 8038 [email protected] | www.cbre.com



http://www.cbre.com/


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July 2014

6. MANAGERS

Managers include all employees with titles of Managing Director (MD), Senior Managing

Director (SMD) and sometimes Director. Some of the following guidelines may also apply to

Senior Appraisers who generate business and provide training to Appraisers, including those

with teams.

6.1 Initial Client Communication

Clients are either contacted by CBRE or contact CBRE directly or through third parties (i.e., law

firms acting on behalf of their clients or mortgage brokers obtaining financing for their clients).

It is the responsibility of the receiving office (office that will perform the appraisal) to disclose if

CBRE previously appraised the property in question at the time the bid is made. If the manager

bidding on the assignment bypasses the receiving office for a bid, then it is the responsibility of

the manager submitting the bid to disclose if CBRE previously appraised a property at the time

the bid is made. This can be determined by checking with the VIEW.

For many clients (i.e., Bank of America, Wells Fargo, etc.), it is their policy to disclose at the

time the bid is being made if any other CBRE service line is providing real estate services for

the property in question. This can also be determined by checking third party resources such as

CoStar, REIS, LoopNet, Google, etc.

Also see “Contracting for Services”.

In all cases, Management must identify and fully understand the client’s needs first, including

the intended use and user, any other reliant parties, and the required scope of services. These

are further described below.

Intended Use - What is the purpose of the report or requested service? Will they be

used in conjunction with additional reports or filings (i.e., estate tax filing, financing,

partnership buy out, etc.)?

Intended User - Who will be relying on this report or service? Who is paying for it? Are

the purchaser and the intended user the same party? With whom are we contracting to

provide this report or service – the purchaser or the intended user?

Scope of Services - Type of report, dates of value, interest appraised, property details,

detail level of analysis required, inspection required, expected cooperation of the

contact or borrower, property data that is/is not available for the assignment, etc.

Required Report Signature - Approved Appraiser or Manager; MAI/Manager will

subsequently review and cosign.

Staff Expertise - Which staff Appraiser or Manager has the geographic and property

type expertise and competency to perform the required scope of services?

Management is responsible for maintaining the national “Full Fee Retainer Client List.” This list

is to include all Clients that are known to have a poor payment history, outstanding receivables

or other issues, such as pending lawsuits against CBRE. The latter necessitates national

notification to all offices that these are not clients with whom CBRE will continue to do business.

The Full Fee Retainer Client List is located on iChannel >> .Library \ Client Documents \

ADMIN folder.



http://www.reis.com/


http://www.google.com/



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July 2014

6.2 Assigning Work

Work is assigned by Management based on geographic and property type

expertise/competency in addition to availability, timing and client requirements. Typically, if

Appraisers generate assignments, they may have first option to perform the assignment

themselves if the property is within their region. However, circumstances may arise requiring

Management to reassign the work to better suit the client’s needs.

6.3 Communication During the Workflow Process

Administration, Appraisers and Management must have a uniform process in place ensuring

all parties are in continual communication, internally and externally with the clients, regarding

the status of each assignment. The suggested process follows below.

Contract comes in, either directly from external client or as a referral from another VAS

office, and assignment is set up in the VIEW.

Administration provides unassigned contract to Management, who then assigns the job

to an Appraiser, based on expertise, geographic or property competency, timing, client

requirements, etc.

Administration sets up electronic job folder and provides contract and any data to

assigned Appraiser.

(Optional) Administration provides full Appraiser contact information to the client.

Appraiser contacts client for initial introduction, property data request and inspection

within 24-48 hours of receiving the job. Appraiser should copy procuring manager

and Administration on initial email.

Appraiser should re-verify if any other CBRE line of business is providing real estate

services for the subject property before work begins.

Appraiser provides assignment weekly status report updates to the client,

Administration and Management in writing.

Appraiser to notify Management and Administration if there are any changes to the

due date. Appraiser must copy procuring manager on any changes in due date or

scope. (Optional) Two weeks and one week before job is due, Administration sends

follow up email to Appraiser to make sure all property info is received and job is still

on time.

Appraisers must contact client to request delay of contracted deliverables immediately

upon determining that the contractual due dates are unachievable based on

documented delays. Appraiser immediately notifies the client, Administration and

Management (both local office and procuring manager) of any delays in receipt of

information or inspection in writing.

Management must be informed of all timelines with a “living” job log/status report,

updated at regular intervals by Administration, in order to track all assignments in the

pipeline and to track and distribute appraiser workload.

In addition to timelines, Management must stay informed of any valuation issues that

may create the need for additional client service in order to take preventative measures

and manage client expectations. Appraisers must notify Management of any such



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July 2014

issues immediately so that they may help to diffuse potentially contentious situations

before they become a problem.

6.4 Review

6.4.1 Quality Control

The review process is an essential part of the appraisal process. It is at this point of the

assignment that critical thinking and analytical skills are utilized by an objective party

to confirm or critique all aspects of the appraisal report, including the non-textual

parts such as photos, maps, exhibits, addenda, etc.

The Reviewer must review the contract to ensure that all client requirements are met.

The data sheets must also be reviewed for accuracy. Argus inputs must be reviewed as

well. All reports provided to a Reviewer must first be spell- and grammar-checked,

including the Excel charts, photo captions, exhibits, etc.

The review function provides tremendous, objective insight into the quality and

capabilities of the Appraiser. During this process, strengths and weaknesses of the

Appraiser become evident, immediate feedback is provided to the Appraiser and they

typically learn to enhance their skills. If deficiencies are addressed repeatedly with a

particular Appraiser and efforts are not made to improve, reviewers must

communicate this with Management, particularly the relevant MD (SMD).

At Management’ discretion, Management may implement specific performance

measures for an employee to help them perform at a higher level and to provide

additional training or mentorship. Continued or substantial performance issues may

lead to other corrective action up to and including termination of employment.

6.4.2 Procedure

Upon assignment of a new project to an Appraiser, the project Reviewer should also

be assigned, if possible. The Reviewer and Appraiser are noted on the project Status

Report at the outset, so that all parties to the assignment can be introduced to each

other and made aware of their responsibilities. Appraisers and Reviewers should

discuss the assignment up front and periodically throughout to ensure all client

expectations are being met.

6.4.3 The Review Process Link by Appraisal Institute

The link above shows the detailed steps to perform a thorough review as endorsed by

the Appraisal Institute.

6.4.4 Internal Review Checklist

For every assignment, the Reviewer is required to complete the Internal Review

Checklist, which must be maintained in the job folder. This document is critical and

attention to the checklist details is mandatory.

6.4.5 Argus Audit

All Argus runs must be reviewed for consistency between the report and the Argus

model.

http://marketing.cbre.com/Houston/Valuation/POP/AI-ReviewProcess.pdf


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July 2014

6.4.6 Signature Protocol

CBRE VAS requires all appraisal reports to be reviewed by Management and signed by

MAI-designated Appraisers, which may be one and the same. If a non-management

MAI Appraiser signs a report, the report must also be reviewed by Management,

although it does not need to be signed by Management.

If a report is signed by a non-MAI Appraiser, the report must also be reviewed and

signed by an MAI-designated Manager. This ensures that all appraisal reports are

reviewed by a second set of eyes.

Make sure you understand each State’s requirements before accepting the assignment.

Unless contrary to law, USPAP allows another person to sign for an appraiser

(including digital signatures), as long as it is with the appraiser’s specific authorization

(i.e. on an assignment by assignment basis). An appraiser must not affix the signature

of another appraiser without their consent. Blanket permission is not allowed.

Many States require the signatories or preparers of the report to be licensed in the

state the property is located. Restrictions as to what may or may not be done by

licensed/unlicensed appraisers vary widely by jurisdiction. “Mandatory” states do not

permit any exception to licensing laws; “Voluntary” states generally have provisions

permitting unlicensed practice under certain circumstances. These statues require us

to educate the client when they are requesting reviews/signatures of client approved

appraisers who are not licensed in the state the appraised property is located. Either

the approved appraiser needs to get licensed in the state the property is located or

work with the client to have the appropriate state licensed appraiser added to the

client’s approved appraiser list. It is the individual appraiser’s responsibility to ensure

that all work performed on the appraisal meets state regulatory requirements.

6.4.7 Signature Protocol For Freddie Mac Reports

Freddie Mac requires every appraiser who signs the report to inspect the property and

they do not require that all reports are signed by an MAI; that is a CBRE requirement.

This effectively requires cosigning MAI’s to inspect.

There are times this is impractical, therefore, we have amended our signature policy

for Freddie Mac reports. The field professional (assuming not an MAI) will inspect and

sign the report and the non-inspecting MAI will review and be added to certification

page as reviewer/contributor under clause number 13.

6.5 Portfolio Procedures and Policy

See Portfolio Procedures and Policy.

http://marketing.cbre.com/Houston/Valuation/POP/VAS_PortfolioProcedures-Policy.pdf

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | APPRAISERS

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July 2014

7. APPRAISERS

7.1 Job Flow

7.1.1 Starting an Assignment

The appraiser will receive an engagement memo via email that provides the job

number and instructions specific to the assignment. An optional voting button may be

included in the notification email in order for the appraiser to confirm receipt of the new

assignment. The following electronic file attachments to this email notification will be

included in the form of a .zip archive:

A job summary sheet (to be produced in the new VIEW system);

A job folder .Zip file with a new job folder structure (see folder extraction instructions below);

An engagement letter; and

Any other pertinent job related information/spreadsheets provided by client.

Upon receipt of a new assignment email notification, use the following 2-step process

to quickly save the electronic job folder and subfolders from the WinZip archive file to

Work in Progress:

Right-click the zip file and select Open With then select Windows Explorer from the sub-menu;

Drag and drop to add the new job folder to your Work in Progress folder.

Drag and drop into Work in Progress


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July 2014

As part of the new procedures, the network library archive will be restricted to read-only

access and the appraiser will no longer move or copy the electronic job files to the

library archive. Instead, a new folder location has been created on the network library

named “Archive Inbox”.

Each office will designate an admin staff-person to be the “Archive Administrator” for

the electronic archives.

Upon completion of draft and/or final report, the appraiser will move or copy the entire

work file into the “Archive Inbox” folder (not into the job archive as was the prior

procedure) and notify the Archive Administrator that it is ready for one of the following

steps:

to be moved to the Archives; or

to be scrubbed.

This procedure will overwrite any previous versions of the assignment that may exist.

Designated staff members who move the files to archives are instructed only to keep the

latest versions and only 1 copy of any file.

7.1.2 Review Initial Information Provided

Engagement Letter. Understand scope of work, client requirements, intended use/user

and client before starting assignment.

Current Client Requirements. Check iChannel >> .Library >> Client Documents.

Current Template. Retrieve current template format from iChannel >> .Formats or

use a customized template as long as it is based on the most current version of the

format.




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July 2014

7.1.3 Initial Client Communication

First Contact with Client. We are a professional service business, and excellent

communication with our clients distinguishes us from our competition. Appraisers must

contact a client representative within two business days of engagement; however,

contact within 24 hours is preferable. Check iChannel for client communication

templates.

Introduction letter with initial data request. Retrieve current template format from

iChannel >> .Formats >> Miscellaneous \ Client Correspondence.

Copy originating CBRE employee on the introduction letter.

7.1.4 Data Request

Must be done in writing within two business days of engagement; however, one

business day is preferable.

CBRE Affiliation. In addition to our standard data request, the Appraiser must ask for

the names and affiliations of all selling/listing brokers, financing brokers, leasing

agents, and property managers. If CBRE is managing, leasing, listing the property to

SELL or BUY, and/or the mortgage broker for the property, the Appraiser must inform

the client in writing. The client will let us know if they believe there is a conflict or not.

Perceived Conflict. If the client believes CBRE’s affiliation causes a conflict of interest,

they can cancel the assignment.

No Perceived Conflict. If the client does not perceive CBRE’s affiliation with the property

to be a conflict, then we will proceed with the assignment. The following language must

be added to the report (in the letter of transmittal, certification and reconciliation). Use

only the words in red that apply.

“The client is aware that CBRE was/is the sales agent/leasing agent/management

agent/mortgage broker for this transaction. Although employees of other CBRE

divisions were involved in the sale/leasing/management/financing, Valuation and

Advisory Services (VAS) operates as an independent economic entity within CBRE.

VAS has not and will not receive any compensation as a result of the transaction. Our

fee is a standard and customary flat fee and not contingent upon a sale or mortgage

placement. Our work and the conclusions herein were reached independently and the

results of this assignment were not influenced in any way by the involvement of other

CBRE divisions.”

7.1.5 Inspection

Dress Professionally and Arrive Promptly. You are the face of CBRE. Please dress in a

manner befitting our global brand. On-time arrival at the subject property is expected.

See CBRE’s dress code policies.

Be Prepared and Ask Questions. Review property information (if provided) prior to

inspection and come prepared with any questions. Check rent roll against actual

occupancy. Complete a full inspection. See Sample questions.

Take Pictures. A photographic record is an essential part of the inspection process. This

serves as a memory aid and an important record of the property and its surroundings

at the time of inspection in case of a future dispute. Please be courteous – ask for a



http://navigator.cbre.com/EN/US/CA/Orange+County/Office+Information/dresscode.htm


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July 2014

tenant’s permission to take photographs inside their building, and respect any

restrictions they may require.

Measurement Techniques and Accuracy

Typically we rely upon a confirmed source of information that has been provided to us or is publicly available to determine the size of the improvements. Occasionally, at the request of the client or if no source is available, the appraiser will have to measure the improvements. Extreme care should be taken and working with a partner who can hold the end of the tape is helpful, but most buildings can be measured solo.

Create a basic building sketch or field drawing. It does not need to be exact; it simply needs to illustrate what the building looks like. Have this with you when you measure so you can indicate measurements on your sketch. Label your sketch with the name of the building, the address, and the date.

If possible, measure from one corner of the building to the other. This gives you the entire length of the building. Measure in sections if one part of the building sticks out from the rest. Indicate where windows, doors, and other features are located. Again, use running dimensions to decrease the chance of making a mistake. Keep the tape level for more accurate measurements. Be sure to start at a level that allows you to get measurements for the key features.

Make additional measurements and notes on the drawing as you see fit. These might include the ceiling height, loading door dimensions, flooring or wall materials, etc. As you photograph the building, indicate on the sketch the location and direction of the photo.

To estimate the floor area. Multiply the length and width of each section, then add those together. Round off to the nearest square foot. Any material error in any of the data could have a substantial impact on the conclusions reported. Thus, make sure we clearly reserve the right to amend the conclusions reported if made aware of any such error. Make sure to properly state the source of the building size and add the appropriate disclaimer.

Use a sketch software programs such as Apex Sketch or RapidSketch to improve accuracy. The appraiser must be familiar with the BOMA measurement standards as well as the Marshall Valuation Service information regarding building measurement.

7.1.6 Ongoing Client Communication

Weekly Status Updates. Draft letters with templates on iChannel >> .Formats >>

Miscellaneous \ Client Correspondence.

Review Process. Please respond within 24 hours of receiving comments from the client

regarding the draft appraisal. If additional research is required which would put the

response time beyond 24 hours, the client’s Reviewer should be notified and an

estimated date of completion given and met.

Work File. Appraiser must keep copies of all communications with client, Management,

etc., in the electronic work file. Of particular importance will be documentation

demonstrating the Appraiser’s attempt to complete the job in a timely fashion should

the client later assess late penalties. Failure to do so may result in financial penalties to

the Appraiser if a client challenges the delivery deadline. A signed certification is

included in the “true copy” of the report, however a signed certification must be

included in the work file if an oral report is given or if no “final” report is provided.

http://www.apexwin.com/us/index.php/software/appraiser-products/apex-sketch-v5-standard

http://www.rapidsketch.com/



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July 2014

7.1.7 Administrative Procedures

Uploading Invoices. Follow the instructions from the initial client email regarding

uploading invoices, if required.

Proof of Delivery. This must be submitted to Administration promptly. The project will

not be billed until proof of delivery is received; and it is not Administration’s

responsibility to track it down.

Billing Sheets and Internal Review Sheets. These must be submitted electronically when

the report is completed – NOT at the end of the month. Late submission is

unacceptable and causes problems with accounting.

Work File. Save Argus and all correspondence. They must be submitted to

Administration when the project is completed.

Responsiveness. Respond to client emails immediately, even if you are just letting them

know when you will respond fully. If others are cc’d on the email, make sure to “Reply

to All”. Remember to respond to Job Reminders by hitting “Reply to All” with an

updated project status. If the due date has changed, indicate this in your email.

Client Communication. Client communication must be ongoing throughout the

appraisal process. As discussed earlier, you must make initial client contact within 24-

48 hours to introduce yourself and request property information. Once received, review

property information thoroughly to ensure it is complete. Make sure you are

communicating with the person who ordered the appraisal report.

Report Delays. If you do not receive full property information promptly, you must alert

the client via email. If these delays will cause a delay in delivery of the final report, you

must inform the client via email and cc Administration so they can note the billing file.

This is critical for auditing purposes.

If you are delayed with delivery of your report because you are behind, you must still

contact the client and let them know, in writing, as soon as possible before the due date.

Do not “lay low” hoping the client will forget the due date. This will only upset them further.

If you no longer plan to bill your job in the current month due to delays, you must send an

email to Management and Administration to let them know.

7.2 Assignment Execution

With the exception of specific contractual obligations with the client, hard-copy working files

will no longer be archived. Appraiser must adhere to a consistent electronic job filing

structure. Refer to the Job Archiving System section for procedures regarding conversion

from the hard-copy work papers to scanned electronic file archives.

Paper job folders will no longer be created. The appraiser will have access to a supply of

pocket folders, manila files, plastic sleeves, etc. in which to keep the work papers during the

course of the assignment.

During the assignment, the appraiser may continue to use their own preferred filing system

for hard-copy working files.


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July 2014

7.2.1 Electronic File Storage

Naming Primary Job Folder

12-271PH-XXXX-YY {Description} – This is the root-level job folder that contains all files related to the specific assignment. “XXXX” represents the file number. The suffix “YY” will be added to distinguish properties within a portfolio. The {Description} is a brief description such as property name or address. Examples include:

12-361HO-0012 Zipline and Canopy Tours, Walnut Shade MO

12-251LA-0122 Atria West

12-231SF-0536-04 Bayside Business Center, Fremont CA

Documents at Root Level

Files to be maintained at the root level are:

Argus

Excel

Word

PDF complete with Addenda. Initial draft will be replaced with the Final PDF

Any other Excel files directly linked to the primary XLModel or Word document (DCF link spreadsheets, for example)

Sub-Folders within each Primary Job Folder

Billing – contains all relevant files for billing and payment/collection info, such as:

Signed Engagement Letter and any amendments

Client and accounting invoices

Copy of retainer check

Copy of cash transmittals (copies of checks are optional, as they are archived as part of the lockbox system)

Documentation of collection efforts

Proof of delivery

Internal Review Checklist (completed and signed)

Job worksheet (completed)

Expense report

Comps – contains comparable property research used in preparation of the appraisal report such as:

Comparable data sheets

VAS import files

Maps

Correspondence – contains any job related correspondence and relevant e-mails.

All correspondence with the client, property contact, broker, etc. Save e-mails as Outlook item or print to PDF.

Market – contains all backup information for regional, neighborhood, and market study sections.

Investor surveys

Industry specific publications cited in the report

Area analysis – Land sales, building sales, building rents, zoning ordinance

Photos – contains all .jpg files taken during the assignment (to be deleted during archival process).


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Keep only one set of the photos to be used in the report.

Reduce resolution to "Documents" or 1024 x 768 pixels prior to using in report or archiving.

Property – contains all property information received from client and/or property contact.

Financials, operating statements, cap ex itemization, etc. (scan documents if provided hard copies)

Environmental reports

Leases

Zoning documents

Architectural plans, ALTA surveys, etc.

Use subfolder structure such as “Provided by Client”, “Provided by Borrower”, etc. to identify the source of the property data, if desired.

Work-papers – contains relevant work-papers to be scanned and archived with the assignment at delivery of the draft report.

All field inspection notes

Notes on any communication with brokers, developers, etc.

Comparable verification notes

Any market data unique to this assignment.

Temp – contains any miscellaneous data files used during the execution of the assignment that are to be deleted upon archival.

Demographics

Addenda items

Any other document which is needed for report production

Copies of old reports used during the preparation of the appraisal

7.3 Job Archiving

All jobs must be archived on the network after the final report has been delivered to the client.

The assignment is deemed effectively complete once the report is delivered to the client,

whether in draft or final.

Work-file archival is to commence immediately upon this event.

Once the assignment is complete, the following steps should be followed for file archival:

The appraiser will optimize the hard-copy (paper) work-file by removing duplicate information and information that would normally not be archived i.e. Argus report print-outs, comp data sheets, and any market data or surveys that have been incorporated within the report.

The appraiser will scan the paper file to .PDF and move the scanned file into the “Work-papers” sub-folder within the electronic job folder.

The electronic job folder is moved or copied to the network “Archive Inbox” folder.

The VAS billing sheet is sent to the Billing Admin/mailbox.

The Archive Administrator will audit the optimized complete electronic job folder and move it from the “Archive Inbox” folder into the appropriate “Archive” folder on the network library drive.

The electronic job folder will be removed from the network Archive Inbox folder.


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If additional revisions need to be made after the job has been finalized and archived, it is the appraiser’s responsibility to ensure that the latest version of the file is used by always copying the job file from the Library Archive in order to minimize any duplicate scrub efforts.

When revisions are completed and a revised report delivered to the client, the electronic file is to be immediately returned to the Archive Inbox folder on the N: drive. Any additional hard copy items should be delivered to the Archive Administrator with the Job Summary Sheet attached.

The revised PDF report overwrites the original PDF report. Only one final report should be maintained in the archived directory at any time.

If a separate archive of assignments is maintained by the appraiser away from the N: drive archive folders, the separate archive must be identical to the archive folder on the N: drive. It may not contain additional files such as review comments from the managers. It may not contain prior drafts of the reports. It may not contain notes that were kept but were not put in the N: drive archives. All relevant information must be maintained in the "official" archive folders and there must not be additional data located elsewhere.

7.4 Requesting Assistance within the CBRE Platform

When utilizing the VAS platform for assistance with an assignment, whether it be updated market

studies, formats, comparables or insight, please be cognoscente of the perception of your request.

The recommended subject line for help is below.

Subject: Request for Assistance – “Property Type”

Within the body of the email describe what type of assistance you are requesting. You are seeking

information, assistance, or help, not competency. The more specific your request, the better

assistance you can expect. If you do not have the necessary competency to complete the

assignment, notify management immediately.

7.5 VAS Technology User Manual

The VAS Technology User Manuel is an important piece of reference material and it is available on iChannel >> .Format \ Miscellaneous \ Appraiser Tools.


CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | APPRAISAL PROCESS AND PROCEDURES

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July 2014

8. APPRAISAL PROCESS AND PROCEDURES

8.1 Keys to a Well-Written Appraisal

A well-written appraisal anticipates and addresses a Reviewer’s questions. Many narrative reports

lack a summary thread that relates how the findings of the report impact the value of the subject

property. Some of the differences between a well-written appraisal and a below-average appraisal

are the addition of a detailed descriptive analysis in each section of the report and a concise

summary at the conclusion of each section.

See Appraisal Process and Procedures

All of the expectations of what makes a quality appraisal are also contained in the formats’ hidden

text.


CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | HUMAN RESOURCES POLICIES AND PROCEDURES

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July 2014

9. HUMAN RESOURCES POLICIES AND PROCEDURES

9.1 Hiring

All hiring will be done in conformance with the CBRE Human Resources policy and procedures.

SMDs/MDs will conduct annual performance reviews of all administrative and professional staff in

accordance with the Human Resources Policies and Procedures. Employment with CBRE is at-will,

which means that either the employee or CBRE may terminate an employee’s employment at any

time, with or without notice or cause. All titles are honorary.

9.1.1 Titles and Job Description

Valuation Associate

Hourly

New to business

Works on collecting data

Assists senior staff

Database management

Valuation Associate

1/3 commission

New to business

Works on collecting data

Assists senior staff

Database management

Appraiser

1/3 commission

Capable of writing whole report

Assigned to senior staff

Working knowledge of Argus, formats and database

Must be, at a minimum, state licensed as a “trainee”

Senior Appraiser

Standard incentive plan (3/4 multiples)

Proficient in all phases of valuation and report writing

State-certified


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July 2014

Vice President

Standard incentive plan (3/4 multiples; 2.75/3.75 multiples if MAI)

Develop new clients

Serve or assist as account manager for existing clients

Good mentor

Hold either MAI or $400,000 production average for three (3) out of 4 years

First Vice President

Standard incentive plan (2.75/3.75 multiples)

Develop new clients

Serve as account manager for existing clients

Good mentor

Responsible for 2 or more associates or Appraisers

MAI designation required

Production average of $600,000 for three (3) out of 4 years

Senior Vice President



Production average of $750,000 for three (3) out of 4 years

Sells significant percentage of own work

Account management responsibility

Highest standards of work quality

Majority approval of other SMDs

Executive Vice President



Production achievement of $900,000 or above for three (3) out of four (4) years

Sells significant percentage of own work

Account management responsibility

Highest standards of work quality

If designated by SMD, the EVP could have review responsibilities

Majority approval of other SMDs

Director

Compensation varies depending upon responsibility. Provides oversight and

management assistance in regional offices as well as managers of satellite offices. Bids

on appraisal assignments, analyzes and negotiates business terms of appraisal

contracts, communicates client requirements to local Appraisers and follows up to

ensure that the client’s requirements and deadlines are met, reviews completed draft

appraisal reports for quality and consistency, assists in keeping appraisal professionals

in region current relative to use of technology


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July 2014

Managing Director

This position is responsible for the day-to-day management of the appraisal

transactions required for clients and provides ongoing support and assistance to the

SMD. Bids on appraisal assignments, analyzes and negotiates business terms of

appraisal contracts, communicates client requirements to local Appraisers and follows

up to ensure that the client’s requirements and deadlines are met, reviews completed

draft appraisal reports for quality and consistency, assists in keeping appraisal

professionals in region current relative to use of technology.

Senior Managing Director

This position provides overall corporate strategic direction for an appraisal region.

Creates and implements strategic initiatives for a specific region. Responsible for Profit

& Loss, and budgeting for the region. Manages financial reporting for a region

including revenue projections and reconciling monthly variances. Coaches and directs

staff to ensure all strategic initiatives are achieved. Manages client relationships, which

includes business development and client follow-up. Develops and implements

departmental policies and procedures to increase operational efficiencies. Formally

supervises individual employees and/or subordinate supervisors within the region.

Responsible for identifying training needs, tracking performance, coaching, and

motivating direct reports. Directly responsible for hiring, terminating, compensation,

and performance evaluation for entire region.

9.1.2 Assistants (Valuation Associate)

CBRE may hire research assistants (Valuation Associate) to be assigned to specific

Appraisers upon recommendation of the SMD and approval of the President. SMDs at their

own discretion may disallow the use of assistants.

Major factors considered are:

% of business generation done by the Appraiser (needs to be more than 50% of

his/her own work);

top work quality;

responsiveness to clients; and

ability to work with and mentor junior employees.

Appraisers outside of California are required to reimburse their profit center monthly for the

cost of the assistant at a percentage based upon the Appraiser’s billings rate. (Annualized

billing levels shown below are per Appraiser.) Appraisers may not combine billings with

other Appraisers for eligibility, nor will Appraisers be allowed to share assistants without the

approval of the SMD and the President.

Appraisers outside of California reimburse their profit centers through a revenue

allocation to their profit center from one or more of their invoices per month. Assistant

costs include salary (including PTO and holiday time) and/or hourly rate, corporate

support, payroll related and miscellaneous costs.

Corporate support - A company overhead charge for each employee based on a

monthly average (currently $1,000) determined by the Accounting Department. The

yearly rate will be established by Accounting.


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July 2014

Insurance and Benefits - A percentage rate (currently 15%) against all salaries,

established yearly by Accounting.

Miscellaneous costs - Include desk cost, phones, mileage, supplies, management, etc.

This cost will be determined annually by President (currently $500 per month).

An Appraiser who elects to discontinue use of a assistant must give 30 days’ notice to

the SMD and continue to reimburse the Company according to the above policy for that

30-day period and will be responsible for all termination costs including severance and

pay-out of PTO.

Due to differences in labor laws, California Appraisers with researchers are handled

differently. Please see your SMD if there are questions regarding California Appraisers.

9.2 Reimbursement for Licensing Dues and Education

Professional Memberships And Licenses

Appraisal license

All Appraisers are required to be certified general in the states in which they perform

appraisal assignments and must follow state licensing requirements for the state in

which a property which they appraise is located. Appraisers are responsible for

maintaining all licenses current, and SMDs and MDs are responsible for verification.

Appraisers whose licenses lapse may have work withheld until the license is brought

up to date.

Permanent license

CBRE will reimburse appraisal professionals for the fees directly related to

maintaining their General Certificate (within the region the appraiser practices)

including renewal fees and continuing education fees subject to limitations noted

below.

Temporary license

When an Appraiser must obtain a temporary license, the cost of the temporary

license will be reimbursed to the employee through an OOP expense report, and

deducted from the total fee as a job expense (see Expense Deductions).

SMDs, MDs, and professional staff’s Appraisal Institute dues are fully paid for as part of the

corporate program. Other expenses incurred in the Appraisal Institute will be reimbursed, subject to

the following:

Reimbursable expenses

Continuing education courses and/or MAI courses for designation upon receipt of passing grade (where applicable). This may include Argus or other software training, with approval of SMD. Subject to the $1,000 annual cap per appraiser.

Challenged examination (reimbursement upon receipt of successful completion). Subject to the $1,000 annual cap per appraiser.

Comprehensive examination (reimbursement upon receipt of successful completion). Subject to the $1,000 annual cap per appraiser.

Expenses Not Reimbursed

Travel and/or lodging related to optional courses, including courses outside an Appraiser’s region when a comparable course is offered in the Appraiser’s region.


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July 2014

Outside services used in conjunction with demonstration reports.

Optional review courses (unless the hours would apply to state certification).

Late fees.

Continuing Education

Paid educational time shall not exceed five working days annually. Due to the expense involved and in light of the maximum reimbursement, Appraisers are encouraged to attend continuing education courses which apply to both their State Certification and Appraisal Institute requirements.

Continuing education reimbursements are capped at $1,000 per year. This benefit may not be carried over from year to year. It is the responsibility of the regional office to monitor the reimbursement usage of each of its Appraisers.

Professional organizations

SMDs and Appraisers may be reimbursed for membership dues in other professional

organizations and attendance at their seminars and conferences with prior approval of the

President.

9.3 Automobile Allowance

To reward and retain quality professionals, Valuation and Advisory Services maintains an

automobile allowance policy based on billings levels. The minimum billings level required to qualify

for an automobile allowance is revised from time to time by the President of Valuation and Advisory

Services and is communicated to the Appraisers through their SMD. For Appraisers hired after

March 1, 1996, and subject to the 5% department surcharge, billings will be adjusted upward to the

100% billings level to allow the billings level minimum to be equal to that of Appraisers not subject

to the surcharge. The formula for this is: Billings/.95 = Adjusted billings.

The auto allowance program is only for Appraisers who are on the standard incentive plan

as of the date of review. Appraisers who switch from the standard incentive plan will have

the auto allowance discontinued as of the effective date of the plan change

Allowance program is subject to semi-annual review. Appraisers are reviewed for 12-month

billings levels at June 30 and December 31.

Qualification

Previous 12-month billings at or above the minimum requirement. The minimum

requirement for 2014 is $450,000 in net billings (adjusted for those on the 5% tax as noted

above). Employees who receive the automobile allowance may not submit reimbursable

mileage reports.

Levels

For those professionals who qualify for an automobile allowance based on minimum

billings, the current automobile policy allows for two levels of allowance based on title:

$800/mo. Senior Appraiser, Vice President

$900/mo. First Vice President, Senior Vice President

Effective dates

Changes in automobile allowance status are effective August (for June 30 review) and

February (for December 31 review). Automobile allowances, which are paid out on the

second bi-weekly paycheck of each month, are considered income and subject to

withholding.


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July 2014

Changes

The automobile policy is subject to change or revocation at any time, without notice.


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July 2014

9.4 Incentive Compensation

Valuation and Advisory Services has various incentive compensation plans designed to reward the

Appraisers based on quality and quantity of work. Admittance to any of the incentive plans must be

approved by the President in writing prior to issuance of any offer. All Appraisers enrolled in an

incentive plan should be issued an Offer Letter outlining their specific approved plan, and should

also sign an Indemnity Agreement and an Employment Agreement (except in the State of California

where a Release Agreement is signed in lieu of the Indemnity Agreement). The originals of these

documents should be kept in the local personnel file and an electronic copy emailed to HR in

Dallas. Compensation is calculated on net fee (gross fee, less expenses incurred, if any, for each

assignment) to professionals. One percent of all fees are placed in a reserve account for bad debt.

Other deductions may occur for marketing, administration, portfolio management, job related

expenses, such as travel, etc. Base salary is paid bi-weekly and commissions are paid on the second

bi-weekly paycheck in the month following the booking of fees.

All Appraisers (except those on the 33.3% plan) hired after 3/1/96 are subject to a 5% department

surcharge or a 10% portfolio (of 12 or more properties) management fee on billings. For any

assignments which the Appraiser sells, the 5% department surcharge is waived.

Standard incentive plan

Must be state licensed as General Certified. Base salary established at the discretion of the President and reviewed periodically. Annual standard base salary is typically $30,000 (except in California).

To be eligible for incentive payments, net fees booked must exceed three (or 2.75) times the sum of the Appraiser’s base salary for the previous 12 months (Base Fee Requirement). The standard incentive formula includes:

35% payment of net fees booked in excess of the Base Fee Requirement

An additional 10% of net fees booked in excess of $120,000 or 4 (or 3.75) times salary, whichever is greater, (except in California where it is a set $120,000 and not a multiple of the salary) and

An additional 5% of fees booked in excess of $180,000.

The following multiples apply based on title:

3 / 4 Senior Appraiser, Vice President (not MAI)

2.75 / 3.75 Vice President (MAI), First Vice President, Senior Vice

President

This is the only incentive plan in which Appraisers are eligible for the Automobile Allowance program.

50% plan

To reward and retain the most seasoned professionals. These are professionals who are

recognized for maintaining good client relationships, have large client following, are well

regarded by others in the industry, and make significant contributions to the division and

the Company.

Base pay of $30,000 ($37,440 in California).

50% of monthly net billings which exceed the minimum billings requirement of 2x salary (based on a rolling 12 months).

Not eligible for automobile allowance.


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July 2014

45% plan


45% of monthly net billings which exceed the minimum billings requirement of 2.222222x salary (based on a rolling 12 months).


40% plan


40% of monthly net billings which exceed the minimum billing requirement of 2.5x salary (based on a rolling 12 months).


33.3% plan

Base pay of $30,000 ($37,440 in California). 100% of allocations from invoices which exceed minimum billings of 1 x salary (based on a rolling 12 months).

33.3% / 30.0% / 36.7% split (Appraiser, Reviewer billing pool, Office).


Not subject to 5% profit center allocation

9.5 Appraiser Vacations

Per CBRE policy, Appraisers who earn incentive compensation are not eligible for PTO. Appraisers

who choose to take vacation time must give prior notice to their SMD or MD and may be subject to

a base pay reduction. Vacation time must be approved by management. This policy may be subject

to revision in locations where state or local law conflict with CBRE policy.

9.6 Referrals

CBRE encourages its professionals to refer its clients to other business units and other appraisal

offices.

Appraisal assignments

Except for 1/3 Appraisers, an Appraiser who refers an appraisal assignment to another appraisal office or professional within the same office is entitled to a 5% allocation of the gross fee. One-third Appraisers will receive a 2.5% referral allocation for any assignments which they sell. Appraisers who work with a 1/3 Appraiser will not receive 5% referrals for assignments they sell and in which they participate as Reviewer.

If there is a 5% referral to another CBRE Line of Business, the Appraisal office that executes the contract and carries it on their receivables will receive a 5% management fee on the job.

Inter-company referrals

Appraisers who refer business to other CBRE lines of business will split the referral fee

50/50 with their department. Referral fees will not be added to an Appraiser’s annual

billings for purposes of meeting auto allowance or recognition conference thresholds. See

the CBRE Policies and Procedures Manual for further information regarding referrals to

other business units.


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July 2014

9.7 Travel Expenses

Authorization

All Appraisers’ expense reports must be approved by the appropriate SMD/MD or BSA as proxy. When traveling on appraisal assignments, Appraisers must follow company travel policy and travel expenses must be considered reasonable. Any travel expenses deemed excessive by the SMD or the President will not be reimbursed.

Parking

Managers

In offices where parking is not provided by the building, SMDs and MDs are entitled to

be reimbursed for monthly parking expenses.

Staff

Payment of staff parking is based on local custom and is at the discretion of the SMD,

given the vast differences from region to region.

Link to how to complete an expense report:

https://navigator.cbre.com/NR/rdonlyres/90D421E2-6FD5-428C-984D-

E61ABC6DA7A6/116957/PeopleSoft91CreatingExpenseReportsQuickReferenceGu.pdf

9.8 Travel Policy Purpose and Enforcement

9.8.1 General

The Travel and Entertainment Expense Management Policy (“Policy”) provides guidelines

and procedures for all CBRE employees who incur business travel and entertainment

expenses for the benefit of and are reimbursed or otherwise paid for by the Company. Any

policy not mentioned will automatically fall under the CBRE Travel and Expense Policy. Any

changes or alteration from this policy must be approved in writing by Supervisor and SMD.

Airline tickets will be issued in Coach/Economy Class unless:

No other reasonable option exists (must be documented).

Approved in writing by your direct supervisor for situations such as traveling with a client.

International flights (under certain circumstances).

Should book non-refundable fares for cost savings.

Frequent Travelers are required to use CBRE’s corporate credit card to book and pay

for travel. Using the corporate card eliminates an expensive layer in CBRE’s payment

and reimbursement process, and is required to realize savings on rental car insurance.

Consistent with long-standing practices, employees on client accounts who are required

to use the client’s credit card, sales professionals, TCC employees, and employees who

travel twice a year or less will typically not be issued a CBRE corporate credit card. If

you travel more than twice a year and do not fall into one of the exception categories

noted above, you should apply for a corporate card by completing the application.

Expense reports should be submitted monthly. With Expense Manager’s approval,

reports may be submitted biweekly.

https://navigator.cbre.com/NR/rdonlyres/90D421E2-6FD5-428C-984D-E61ABC6DA7A6/116957/PeopleSoft91CreatingExpenseReportsQuickReferenceGu.pdf

https://navigator.cbre.com/NR/rdonlyres/90D421E2-6FD5-428C-984D-E61ABC6DA7A6/116957/PeopleSoft91CreatingExpenseReportsQuickReferenceGu.pdf

https://mypolicy.cbre.com/read_policy.php?doc_id=2950007

http://navigator.cbre.com/EN/Departments/Treasury/Corporate+Card/Resources/Forms.htm


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July 2014

Receipts must be submitted with each expense report. Only receipts for said report

should be submitted. If additional receipts are submitted, which are not included on the

report, it will be pushed back with instructions to remove additional receipts.

Dates on expense report must match dates on receipts.

Client information, job number, place of business, and purpose for expense must be

noted in description on expense report. Client name or job number should be noted on

receipt.

9.9 Computers

All Appraisers will be issued a standard Valuation computer for use in accordance with

the company’s Information Asset Protection Agreement.

Appraisers who desire dual monitor setup will buy the additional monitors unless you

are working in an upgraded Workplace 360 office which includes dual monitors.

Managing Office will pay for the connection.

Other Equipment – Equipment that may be needed for an appraisal job such as

cameras, measuring tapes and devices, portfolio pad, iPad, iPods, etc. which are

supplied by the employee and may be used for employee’s own personal use are the

employee’s own property and not CBRE’s.

9.10 Performance Reviews

These are performed on all employees by Management annually in compliance with the CBRE

company policies. See Performance Management and a sample performance review template.

http://navigator.cbre.com/EN/Departments/Human+Resources/Performance+Management/


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July 2014

9.11 Reduction in Incentive Compensation

In order to comply with CBRE’s customer service requirements, it is essential that all Appraisers

routinely prepare quality appraisals and communicate with clients for each assignment. The SMDs

will have the option of instituting a reduction in incentive compensation if any appraiser repeatedly

performs an assignment without the proper due diligence and/or fails to communicate with their

clients continuously throughout the process. The following guidelines should be adhered to:

Client Maintenance Letters

A. Introduction Letter - Within 24-48 hours of new assignment email notification, contact client to introduce yourself, request property data and schedule site inspection. Copy all admin staff on your message.

B. Copy client on all communication with property contact – Always!

C. Provide client with weekly progress/job status – every Monday or Friday, or every 7 calendar days/5 business days from date of introduction. Copy all admin staff on your messages.

D. Any and all delays must be communicated to client with a written letter. Copy managers and all admin staff on your messages.

A B C D

Reduction in Incentive Compensation Splits

At Management’s discretion, if an SMD or MD believes an appraiser has violated these

guidelines, the Appraiser may be counseled for an initial violation. After such counseling, if

a second violation occurs, the Appraiser may receive a written warning. If an Appraiser has

three violations within a 12-month period and the Appraiser’s direct report/supervisor

agrees the Appraiser’s future compensation may be reduced by taking between 20% and

50% off the gross fee for the following three months on all assignments performed by the

Appraiser. Other corrective action may be imposed for violation(s) of these guidelines, up

to and including termination of employment.

9.12 Termination

All involuntary terminations should be reviewed by HR in advance. Contact Patti St. Clair

(602.735.5445 for assistance and direction. Be prepared to provide written documentation of all

actions.


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July 2014

9.13 Legal Compliance and Support

The corporate legal department has designated counsel for the VAS division. They include:

Central Division

Mardi Milia

630.573.1296

[email protected]

Eastern Division

Griswold Ware

630.573.7109

[email protected]

Western Division

Alan Wang

213.613.3002

[email protected]

Beverley Lu

213.613.3004

[email protected]

Tri-States

John Mauk

516.714.2703

[email protected]

9.14 Legal Services

All Appraisers, administrative staff, and managers should familiarize themselves with CBRE Policies

and Procedures regarding Legal Services. CBRE legal staff must be immediately contacted to assist

with all of the following matters as they arise:

Subpoenas

Declarations

Confidentiality agreements

VAS Indemnification Letters – Indemnification Form

Indemnification - Securitization Form










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July 2014

Depositions

Lawsuits

Any assignment that may be used in conjunction with potential litigation must have a

completed internal conflict check performed prior to accepting and executing the contract.

9.15 Office Standards

As a professional service company, we should convey professionalism in operations, appearance

and attitude. These office standards will ensure a good first impression and continued respect from

both the client and the marketplace. The office standards described below apply to all CBRE

employees.

9.15.1 Attire

Personal appearance of all employees must be professional at all times and in adherence with

CBRE’s dress code policies, especially when client facing. Assumptions are made about your ability

to perform at a high level based on the way we dress. When we dress professionally, we convey a

strong message that we are a capable professional.

9.15.2 Attendance

All employees should notify Administration and Management of material changes in their

anticipated daily schedules so that during company hours, employees can be located, if necessary.

Managers should be notified in advance of any vacations or extended periods of absence so that

workflow is not unnecessarily disrupted.

9.15.3 Out-of-Office Communication

All employees are responsible for notifying their clients of absences that may impact communication

during the course of an assignment. This could include the use of the “out-of-office” reply function

for company email as well as an “out-of-office” voicemail greeting. (Please refer to the Out-of-office

Assistant under Tools within Microsoft Outlook.)

All employees must make a diligent effort or arrange for someone to check both voicemail (office

and cell phone) and email during their absences from the office for any urgent matters that may

arise during that time. Exceptions may be made for unexpected emergencies or lack of access to

email and voicemail while in remote locations.

9.15.4 In-Office Communication

While in the office, employees should keep email open so they can be responsive to all urgent

matters and cognizant of issues as they arise. While email is important, we should remember the

value of face-to-face or even voice-to-voice communication. Also a signature that includes contact

information ensures that people know who you are.

9.16 Additional Policy

Any CBRE policies not relating specifically to Appraisal Line of Business are included in the CBRE

Policies and Procedures Manual posted on Navigator. All employees are responsible for knowing

and adhering to CBRE’s Policies and Procedures. In the event of a conflict between CBRE’s Policies

and Procedures and the Practice Area Guidelines, CBRE’s Policies and Procedures will control unless

such policy is specifically addressed herein.

http://navigator.cbre.com/EN/US/CA/Orange+County/Office+Information/dresscode.htm

http://marketing.cbre.com/Houston/Valuation/POP/VAS_AppraisalProcess-Procedures.pdf

http://marketing.cbre.com/Houston/Valuation/POP/VAS_AppraisalProcess-Procedures.pdf

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | TRAINING: ADMINISTRATION, APPRAISERS AND MANAGEMENT

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10. TRAINING: ADMINISTRATION, APPRAISERS AND MANAGEMENT

10.1 Administration Training

For Business Services Administrators (BSAs), typically an experienced BSA from another region will

go to the new BSA’s office for training. There are ad-hoc conference calls when there are issues to

discuss – no set schedule for calls.

A procedural manual for Administrative Training is forthcoming.

10.2 Appraiser Training

There are several areas of Appraiser training. It is the responsibility of the Appraisers’ direct

supervisor to either provide such training or make that training available to the Appraiser. It is also

recognized in the appraisal profession in general, and CBRE in particular, that a significant amount

of training occurs in the everyday setting as professionals interact and collaborate on various topics

and issues.

The following is a list of areas where training is expected, and how to access the appropriate

resources.

10.2.1 Internal Resources

Several resources are available and provide a benefit for the Appraiser in their day to day

work. A listing of these resources is provided, along with where to access training on these

tools. For all of the listed items, it is the responsibility of the Appraisers’ direct supervisor to

either provide the training, or to ensure that the Appraiser has access to the correct

resources.

Practice Area Guidelines (PAG) – This is available on iChannel. It is a requirement

that a copy is provided to Appraiser. Document is to come from direct supervisor, or

from their designee. The employee is expected to review and be familiar with this

document.

VIEW

Training at CBREU (Houston, TX)

Use Houston IT team for interactive training

Refer to the VIEW User Guide

Navigator

The Navigator is an intranet site which is accessible only by CBRE´s employees or authorized outside users.

The Navigator is home to both corporate and local news, business line information and department information such as HR, IT, Corporate Communications, Research, and Web Marketing. This is your central location for tools, training and information.

http://marketing.cbre.com/Houston/Valuation/POP/VAS_AdministrativeProcedures_06-2014.pdf



https://vas.cbre.com/Content/VASHelp.pdf

http://navigator.cbre.com/EN/


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iChannel

iChannel is the VAS group’s web-based document archival and delivery system. Client-accessible sites are created for portfolio assignment management and report delivery.

Use Houston IT team for interactive training.

See iChannel instructions.

CBRE Word Excel linked templates

Training at (Houston, TX)

Use Houston IT team for questions and interactive training

CBREU materials available on iChannel or from IT team

One-on-one training with direct supervisor

Transaction, Flood, Site, Economic and Demographic Information

CBRE has a wide variety of this information including, but not limited to Costar,

Loopnet, Nielsen SiteReports, Economy.com, among others. In most cases, many of

these services are also market specific. Most of the instructions for these services are on

iChannel or the providing service tutorial. Further, all of these outside services have a

help phone number or virtual help service.

10.2.2 Appraisal Process and Procedures

Several important areas are presented in the PAG. It is the supervisor’s responsibility to be

familiar with these items and ensure that the Appraiser is trained in these procedures.

Further, it is up to the Appraiser to be familiar with these sections. For the comprehensive

list of areas covered, refer to the Appraisal Process and Procedure section.

Process and Procedures

The list in the PAG section on Process and Procedures is not repeated here. However,

the training note is that it is the responsibility of the supervisor to understand these

policies and procedures, review these with the Appraiser, and be prepared to provide

day-to-day training. Some of the items that deal with the templates and technology will

need to be provided from the CBREU training, the CBREU training materials, access to

the IT support team, or face-to-face training with the supervisor. As a summary, it is the

responsibility of the supervisor to ensure that these resources are provided and utilized

by the Appraiser.

ARGUS

This is an especially important area for training. The supervisor providing any and all

training MUST be proficient in Argus or provide access to a professional that is

proficient. It is not acceptable for Appraisers with little or no training in Argus to

prepare this analysis. There are Argus training courses. Review of Argus should be

done anytime an Argus is used. At a minimum, the supervisor should be provided with

access to the electronic version, or review the detailed Argus Assumptions reports,

along with the cash flow and DCF schedules.

Expense Reports

See section on expense reports in Administrative Procedures of the PAG.







http://www.claritas.com/sitereports/Default.jsp

http://cbre.economy.com/



http://marketing.cbre.com/Houston/Valuation/POP/VAS_AdministrativeProcedures_06-2014.pdf


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10.3 Management Training

Many of the areas covered in the Appraiser training section are relevant to manager training as

well. Specifically, the sections that relate to job set-up, work flow, client communication, and

appraisal process and procedures are listed in the Appraiser section. Added training for managers

includes references to portfolio management, and administrative procedures.

10.3.1 Portfolio Procedures and Polices

There is a detailed section highlighting what is needed from bidding, coordinating and then

executing a portfolio assignment. Managers are referred to the Portfolio Procedures and

Policies section for added detail. Further, added resources for portfolio management

include the IT team, along with other MD/SMD professionals who are experienced in

managing portfolio assignments.

10.3.2 Administrative

The manager is responsible for items noted in this section. Resources for training include

Tina Peterson, regional BSA, the President of VAS and other SMD/MD professionals. The

items noted in the Administrative section are to be followed, and questions referred to the

various individuals named above, as needed and per the needs of the particular work area

in question.

Appraisal Review

There are several references to review policies throughout the PAG. In short, the PAG

provides comprehensive information, and is detailed in expectations and requirements

pertaining to review. The reviewing manager/lead signature on the report is

responsible for ALL contents in the report, and this individual is expected to be entirely

familiar with the analysis and report. A full and complete review is required for all

assignments before communicating any written or verbal work product to the client.


CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | VALUATIONS FOR FINANCIAL REPORTING (“VFR”)

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11. OTHER VALUATION SERVICES

11.1 Valuations for Financial Reporting (“VFR”)

The ever-increasing corporate scrutiny around transparent financial and tax reporting requires

valuation experts who are well versed in the current trends and techniques related to valuations for

regulatory reporting purposes. If you are working on an assignment with Financial Reporting, a

brief overview of the policy and process is available here.

11.2 Property Assessment and Consulting Services

The Policy and Procedures for the Assessment and Consulting Services (ACS) Group is to ensure that

all Environmental Site Assessments (ESAs), Property Condition Assessments (PCAs), and other

technical work produced by CBRE, Inc. (CBRE) meet a high level of professional standards while

protecting the company from unnecessary liability risks. It is the intent of this PAG to set out a

consistent procedure and work product standard such that CBRE will provide its clients with

consistent level of quality and report content regardless of the Field Professional (FP) conducting the

work, the Project Manager (PM) setting up the project and reviewing the work product, or the MD

overseeing the region the work is conducted. These policies and procedures are currently under

development.

http://marketing.cbre.com/Houston/Valuation/POP/VAS_FinancialReporting.pdf

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | APPENDIX

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12. APPENDIX

12.1 Appraiser

12.1.1 Internal Review Checklist

12.1.2 Client Communication Templates

Introduction and Property Request Letter

Weekly Status Letter – On Time

Weekly Status Letter – Late

Document Delay Letter

12.1.3 VAS Quality Management Checklist

12.1.4 iChannel Instructions

12.1.5 Standard Incentive Plan Excel Calculation Worksheet

12.1.6 1/3 Incentive Plan Excel Calculation Worksheet

12.1.7 Apartment Property Questions

12.1.8 Industrial Building Property Questions

12.1.9 Office Building Property Questions

12.1.10 Office Data Request

12.1.11 Shopping Center Retail Property Questions

12.1.12 Single Tenant Retail Property Questions

12.1.13 VAS Technology User Manual

Located on iChannel >> .Format \ Miscellaneous \ Appraiser Tools

12.2 Administrative

12.2.1 Contract

Located on iChannel >> .Format \ Miscellaneous \ Contract with Letterhead

12.2.2 Full Fee Retainer Client List

Located on iChannel >> .Library \ Client Documents \ ADMIN

12.2.3 Expense Report and Procedure

http://library.cbre.com/xpedio/groups/public/documents/cbresource_hr_054/cbre043

809.pdf

12.2.4 Status Report-Pipeline by Appraiser

12.2.5 Master Status Log-Report Delivery Schedule

12.2.6 VAS Risk Analysis Sheet

http://marketing.cbre.com/Houston/Valuation/POP/InternalReviewChecklist.xlsx

http://marketing.cbre.com/Houston/Valuation/POP/A-IntroductionandPropertyRequestLetter.docx

http://marketing.cbre.com/Houston/Valuation/POP/B-WeeklyStatusLetter-OnTime.docx

http://marketing.cbre.com/Houston/Valuation/POP/C-WeeklyStatusLetter-Late.docx

http://marketing.cbre.com/Houston/Valuation/POP/D-DocumentedDelayLetter.docx

http://marketing.cbre.com/Houston/Valuation/POP/GlobalPAG_ValuationsComplianceChecklist.xlsx

http://marketing.cbre.com/Houston/Valuation/POP/iChannel-fromCBU_MANUAL_0811.pdf

http://marketing.cbre.com/Houston/Valuation/POP/Incentive-StandardPlan.XLS

http://marketing.cbre.com/Houston/Valuation/POP/OneThirdIncentiveSplit.xls

http://marketing.cbre.com/Houston/Valuation/POP/ApartmentPropertyQuestions.doc

http://marketing.cbre.com/Houston/Valuation/POP/IndustrialBuildingPropertyQuestions.doc

http://marketing.cbre.com/Houston/Valuation/POP/OfficeBuildingPropertyQuestions.doc

http://marketing.cbre.com/Houston/Valuation/POP/OfficeDataRequest.doc

http://marketing.cbre.com/Houston/Valuation/POP/ShopCenterRetailPropertyQuestions.doc

http://marketing.cbre.com/Houston/Valuation/POP/SingleTenantRetailPropertyQuestions.doc




http://library.cbre.com/xpedio/groups/public/documents/cbresource_hr_054/cbre043809.pdf

http://library.cbre.com/xpedio/groups/public/documents/cbresource_hr_054/cbre043809.pdf

http://marketing.cbre.com/Houston/Valuation/POP/SampleStatusReport.xlsx

http://marketing.cbre.com/Houston/Valuation/POP/SampleMasterStatusLog.xlsm

http://marketing.cbre.com/Houston/Valuation/POP/RiskMangement-FlowChart.pdf

CBRE | VALUATION AND ADVISORY SERVICES | POLICIES AND PROCEDURES FOR THE UNITED STATES | APPENDIX

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12.3 Human Resources

12.3.1 New Hire Induction Check List

12.3.2 Performance Review Template

12.3.3 Job Architecture Matrix

12.4 Legal

12.4.1 Indemnification Agreements

a. Indemnification Form

b. Indemnification - Securitization Form

12.4.2 Confidentiality Agreement

12.4.3 VAS Engagement Flow Chart

http://marketing.cbre.com/Houston/Valuation/POP/Onboarding_Checklist_052609.xls

http://marketing.cbre.com/Houston/Valuation/POP/ANNUAL_PERFORMANCE_EVALUATION-2011-AppraiserTemplate.docx

http://marketing.cbre.com/Houston/Valuation/POP/ValuationJobFamilyMatrix.xlsx




Policies and Procedures for the United States

Documents

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