A Real Property Report (“RPR”) is a drawing prepared by an Alberta Land Surveyor of the Property, at a set date, showing its boundaries and dimensions as well as the location of all of the improvements to the Property such as the House, garage, driveway and fences.
This is an important document to both the Buyer and the Buyer’s Lender for it confirms to both of them that there are no physical issues with the Property such as a garage that crosses into the neighbour’s property.
The approximate cost for a new RPR is $1,000.
The standard form real estate contract used in the Bow Valley places an obligation on the Seller to provide the Buyer with an RPR with a Compliance Certification on it.
The Compliance Certification is done by the Municipal Authority such as the Town of Canmore confirming that the Property is in compliance with the Municipal bylaws. Examples of when the Town of Canmore won’t issue the Certificate of Compliance is when a deck has been constructed without obtaining a Building Permit or when a shed is located over a Town of Canmore Right of Way. These types of issues are usually quite easily resolvable by the Seller.
RPRs are NOT NEEDED FOR CONDOMINIUMS, UNLESS, the Condominium is a Bare Land Condominium. The type of Condominium you are buying can only be determined by reviewing the Condominium Plan.
PROBLEMS FOR THE SELLER arise in a couple of ways:
– the Seller loses the original RPR with Compliance and therefore doesn’t have one available to provide to the Buyer;
– the RPR is old; for instance some Lender’s will not accept an RPR that is older than five years and if they do accept an older RPR, they will insist that the Seller swear a Statutory Declaration declaring that nothing has changed on the RPR;
– there is in fact a problem with the Property that the Seller hasn’t remedied; or
– the Seller never did have an RPR but has contracted with the Buyer to provide one.
THE SELLER NEEDS TO DEAL WITH THE ISSUE OF PROVIDING AN RPR EARLY!!
If an RPR is called for in the Contract and is not available for the Buyer on the Closing Date, the Seller’s Lawyer may ask the Buyer’s Lawyer if his client will waive the requirement to provide an RPR. In rare cases, the Buyer may agree to this, however, in most cases the Buyer’s Lawyer will insist that the Seller’s Lawyer provide an RPR and withhold sufficient funds from the Seller until the RPR has been provided.
A $1,500 to $5,000 holdback is not uncommon. The main reasons a Buyer will insist on an RPR is that it was agreed to in the Contract and when the Buyer goes to sell the Property in the future, an RPR will need to be provided which would be an extra cost to the Buyer.
If you or your Realtor believe there is or may be an issue respecting your RPR, discuss it with me sooner than later so we can get it resolved. Sometimes Title Insurance can be used in place of an RPR..