I’m sure you’ve heard someone throw around the term RPR or Real Property Report at some point, and if you’ve seen one, you may think it is as simple as a schematic on a home lot. However, there is a lot to them on the back end of a deal, and a lot of work is required on the front end before listing to ensure a smooth sale.
What is a Real Property Report?
So glad you asked! A Real Property Report (RPR going forward), is a legal document created by a Land Surveyor that outlines where a home and any permanent fixtures are located in relation to property lines. It is a legal document that is required for the successful sale of your home in Alberta.
What Sellers Need to Know
Per the purchase contract, and listing agreement, it is your responsibility to provide this to us within 10 days (ASAP!). If you need help, call your agent, they may have a few tricks up their sleeve to help find it. You may need to order one, or get yours updated, for that, reach out to your local Land Surveyor.
To make sure you have the right RPR, make sure the Legal land description lines up with what you have on title. To have a Compliant RPR, it must have a stamp from your local city, town, or municipality stating that everything is within compliance. Fortunately, RPRs do not expire, but they can go out of date if you do substantial changes to the property such as building a garage, deck, or even adding AC.
Why do we need Real Property Reports?
The reason they are important is that it helps ensure when you sell your home, you are not handing off any major issues to the buyers. The primary purpose on an RPR is to make sure your home is compliant with local bylaws, especially regarding setbacks (distance from property line or other structures). To have a Compliant RPR, it must have a stamp from your local city, town, or municipality stating that everything is within compliance. Fortunately, RPRs do not expire, but they can go out of date if you do substantial changes to the property such as building a garage, deck, or even adding AC. If your RPR is not compliant with local bylaws, it is your responsibility to make sure those problems are fixed before possession, or have otherwise received an exception. I will always recommend getting your RPR updated right after you’ve done major changes to your property, it is substantially easier to get an exception or “grandfather in” changes if you already have the updated RPR and Compliance Stamp. The reason they are important, is that it helps ensure when you sell your home, you are not handing off any major issues to the buyers.
My home is not compliant! What do I do?
Buckle up, time for a lot of “if-or” statements! If your home is not compliant, you have a few options: Fix the issue, or get a relaxation (exception). For fixing the issue, this can sometimes be as simple as moving a shed 3cm, othertimes, you may be required to tear down a fence or garage and rebuild in the right spot.
Asking for a relaxation from your town would be option #2, this will be easier if you still have all the building permits, best case scenario they say “sure”, add a compliance stamp, and something called an Advisory Notice, what that Notice will say is “This is grandfathered in, so is compliant, however, if you tear down the garage you will not be allowed to build it in the same spot a second time.”
I cannot find my RPR, what are my options?
There are a few things you can do, my tried and true is reaching out to whichever lawyer you worked with when you bought the home, sometimes they have the RPR from your purchase.
Another option is calling the land surveyor who did the RPR previously, only catch is that you have to remember who did it for the sellers.
Another option is offering Title Insurance in lieu of an RPR. Basically buying an insurance policy that will protect the buyer’s from any financial harm if the lack of an RPR leads to further financial issues. This does not protect them from known issues, so will not work if you know that your RPR is non-compliant. Don’t even think of it.
What Buyers Need to Know
Largely, the act of getting the Real Property Report lies on the seller’s plate, however it is yours (and your agent’s) responsibility to make sure there are no nasty surprises. First, compare the Legal Land Description matches the one on title and the purchase agreement, make sure it matches.
Now you have to check for compliance, fortunately, they are commonly done with a big red stamp that says “Compliant as of x date assuming no substantial changes bla bla bla” with a signature and date at the end.
Always check the date, and compare what you see on the RPR to what you see at the home, is the deck accounted for, the permanent shed, AC? Some towns don’t care about the smaller things like AC, so don’t be alarmed if you don’t see the occasional item, but it is important that you confirm this with the Land Use Bylaws and the town.
“Why should I check this if my Realtor and Lawyer are going to check it anyways?” Because I am a believer in “Trust, but verify”. It is the smart thing to do, I like to relate it to automatic braking and deer. If you are looking out for the deer while driving, and see one in the distance, you can start slowing down gradually to give the deer lots more time to move out of the way, or give yourself time to come to a gradual stop. And then you’re on your merry way after the issue is resolved.
Compared to automatic braking (lawyers right before closing), who will slam those brakes so hard it’ll throw that prized chili you were taking home all over your dashboard, the prized chili in this metaphor being your dream home that you are now locked in to buy. Yes, unless it is a weird loophole or negotiation, the seller will be responsible to fix the issue, but do you really want to deal with that headache?
The Lesson:
Update your Real Property Report!!
This was written and researched by a real boy (me!), AI was not used.
