1. What is a Real Property Report?
A Real Property Report (RPR) illustrates the location of structures and improvements to the land relative to property boundaries. It takes the form of a plan or illustration of the physical features of the property, and includes a written statement detailing the surveyor’s opinion about the structures relationships to the technical property boundaries. It can be relied upon by Buyers, Sellers, Realtors, and the Municipality as an accurate representation of the improvements on the property.
An RPR contains extensive information about the property, including:
o a legal description of the property
o certificate of Title number and registered owner(s), and the date the title search was completed
o location of rights-of-ways and/or easements registered on the title
o location and size of any visible encroachments that relate to the property
o indications of any easements that affect the property
2. What is Compliance?
The Compliance Certificate confirms that all structures and buildings on the Real Property Report meet the regulatory standards set by zoning Bylaws. The certificate also shows that required building permits have been secured. Before you can apply for a Compliance Certificate, a RPR must be ready to be issued by a certified land surveyor.
3. Why should I want these documents?
For most residential and commercial land sales, both an RPR and a Compliance Certificate will be part of the process. In Alberta, most banks will also require an RPR and a Compliance Certificate from the municipality before a sale will be finalized or mortgage funds released.
Because the cost of an RPR will vary with the complexity and size of the property, obtaining both documents can be expensive. However, having the documents protects both the buyer and seller’s interests during the transaction. The benefits of having a current RPR and compliance certificate include the following:
o Providing an RPR and compliance certificate meets the requirement of some seller representation agreements and purchase contracts, which often require the seller to provide the documents to the buyer;
o Location of the property boundaries and improvements are known: owners and potential buyers alike can know the locations and dimensions of buildings, improvements, right-of-ways and encroachments relative to boundaries of the property;
o Any issues with the property or adjacent properties are known upfront, so issues can be addressed prior to closing; and
o Buyers who want to make improvements to the land later on will require boundary information anyway to obtain development and building permits