What is an RPR or Real Property Report?

When selling your house, you need to have an updated RPR, a Real Property Report. This document is an essential document to close the sale of your house. A lawyer will need this RPR a few weeks before closing, but in any case, the earlier the better. In fact, we strive to get this RPR in order before even listing your home, just to avoid any issues in the process of closing on a sale.

What is a Real Property Report?

An RPR stands for Real Property Report and shows the boundaries of the land with all its improvements and additions on the land, such as the house and the garage. But the RPR also shows any sheds, retaining walls, fences, concrete paths, patios and decks, swimming pool, window wells and air conditioning units. All these items are measured and drawn on this RPR.

Besides all these physical items, this document also shows any other relevant facts, such as utility rights-of-way and encroachments. An example of an encroachment is a building, a fence or retaining wall infringing on the neighbors’ property or public land from the City of Calgary. These encroachments are mentioned on the RPR and are also registered on the title of the property.

The age of the RPR is irrelevant, as long as all the current improvements are on it, and the City of Calgary has given the RPR its compliance stamp. Every single family home and bare land condominium needs an RPR. A conventional condo does not need one; instead there is the Condominium Plan.

What if a structure doesn’t comply with municipal bylaws?

Any improvement to land is subject to municipal bylaws. What if the deck or the garage was built too large, or is encroaching on the neighbor’s property? Getting a relaxation from the city is one option, and the option to wish for as a seller. Essentially the city can still allow a non-conforming structure to stay legally on the property.  But if the city does not allow a relaxation on the issue, the structure must be altered or removed. Now, a deck may be easy to adjust, but a garage isn’t. Getting a relaxation permit is the process to follow, and you can read more about that on the City of Calgary website.

Buying or selling a house without a compliant RPR

The risk for a buyer to purchase a home without a compliant RPR is simply too high. One risk can be that a structure does not comply with the municipal bylaws. Changing a deck may not be difficult or expensive, but if it is a garage which needs moving, the costs can add up. And the buyer will be on the hook for that. Technically, the buyer can walk away from the sale if the seller does not provide a compliant RPR in time.

If a seller is not able to supply the RPR to the buyer in time, the buyer can delay any payments. And any delay of payments can be stressful for the seller. This is especially true if the seller needs any proceeds to pay off a mortgage, or even worse, needs the money to pay for a newly purchased home. This kind of stress can easily be avoided by having this RPR in order and submitted on time.

How we as realtors check a Real Property Report

We walk the property and make sure that all items are shown on the RPR. If anything is missing, it must be updated. If things like a deck, a garage, fence or A/C unit were added, the RPR needs updating. It is cheapest to contact the surveyor who created the RPR initially. After updating, the report needs a compliance stamp from the City of Calgary to make it valid.

Who makes an RPR?

Only certified surveyors can prepare a valid RPR. A surveyor is responsible for any inaccuracies, for which they carry liability insurance. The Alberta Land Surveyors is the association to turn to if there are  more questions in regard to RPRs.

The RPR in the purchase contract

As mentioned, the RPR is a vital document in any sale and purchase in Calgary and is mentioned several times in the purchase contract:

6.1 During this agreement you must: (a) provide us with a real property report showing the current state of improvements on the property according to the Alberta Land Surveyors’ Manual of Standard Practice, with evidence of municipal compliance or non-conformance, within ten days of signing this agreement, unless the property is a conventional condominium. Not having this real property report may result in problems on closing or rescission of the purchase contract.

10.2 Closing documents will include an RPR showing the current improvements on the Property according to the Alberta Land Surveyors’ Association Manual of Standard Practice, with evidence of municipal compliance or non-conformance and confirming the seller’s warranties about the land and buildings. This obligation will not apply if there are no structures on the land. The buyer or buyer’s lawyer must have a reasonable time to review the RPR prior to submitting the transfer documents to the Land Titles Office.

 10.7 The seller will pay the costs to prepare the closing documents, including an RPR where required, costs to end an existing tenancy of the Property and provide vacant possession to the buyer, and costs to prepare, register and discharge any seller’s caveat based on this contract.

Avoid the stress, update your RPR in time!

So, to avoid stress for both parties, sellers must have this important document in order. That means it needs to show all improvements. Next, it needs a compliance stamp from the City of Calgary to make it valid. If you have any doubts or questions about your Real Property Report, contact your lawyer or realtor without delay.

 

Please note: The above is general information and not considered legal advice. We do our best to write informative articles about real estate in Calgary, Alberta. If you have any questions or concerns about our comments,  feel free to contact us or speak to your legal advisor.