What is a Real Property Report in Canada?
Everything you need to know about Real Property Reports — with and without compliance — and all their components.
A Real Property Report (RPR) is a legal document created by a registered land surveyor that depicts the location of visible improvements relative to the boundaries of the property. It displays property boundaries, structures, easements, and encroachments, verifying adherence to municipal bylaws, zoning regulations, and setback requirements. Real Property Reports can be completed with or without verification from the municipality. Below is a glossary of terms and components associated with Real Property Reports. Each province has its own systems for creating RPRs, but we’ll use Alberta as an example for illustrative purposes.
Components of a Real Property Report
Property Boundaries
Property boundaries are clearly demarcated lines defining the legal borders of a property. Precise determination of these boundaries allows for an accurate illustration of a property’s extent, preventing discrepancies that can arise during sales transactions.
Structures and Improvements
The report provides a detailed depiction of structures such as houses, garages, and fences present on the land. The depiction includes the locations of buildings and any enhancements that have been added to the property. By providing this information, the Real Property Report facilitates clarity in understanding the physical attributes of the property.
Easements and Encroachments
Easements involve rights-of-way or utility easements allowing specific entities access to the property. Encroachments refer to structures or improvements from neighbouring properties extending over the property’s boundaries. The report identifies both these aspects to avoid legal discrepancies or conflicts in property use.
Compliance Information
A surveyor’s statement within the Real Property Report indicates if the property meets local municipal regulations. This statement ensures buyers and sellers are informed of any potential issues that may require resolution prior to or during property transactions.
Purpose of a Real Property Report
Transaction Clarity
RPRs enable buyers to comprehend the property’s boundaries and identify any encroachments or non-compliance issues. By understanding these elements, parties can make informed decisions regarding the property’s value and adherence to legal regulations.
Compliance Verification
Verification of adherence to local bylaws, zoning regulations, and land-use restrictions ensures that structures on the property conform to legal standards. Verification is a foundational step in fulfilling legal assurances during the sale process.
Risk Mitigation
By identifying encroachments or regulatory violations, a Real Property Report allows parties to address these challenges before the sale is finalized. Identifying these issues proactively reduces the likelihood of disputes or financial liabilities arising post-sale.
Real Property Report With Compliance
An RPR with compliance augments the foundational survey with a Compliance Certificate from the municipality. The certificate certifies that the structures on the property align with the land-use bylaw. This certification excludes verification of building code compliance or the history of permits for internal refurbishments.
Compliance Certificate
The Compliance Certificate is issued after a review of the Real Property Report to ensure structures meet local regulations. This review process involves a thorough examination of the municipality’s records related to land use, approved permits, and variances concerning building height and setbacks.
Process of Obtaining Compliance
To obtain a Compliance Certificate, a search of municipal records is necessary. This search covers aspects such as the land use district, development permits, and variances approved related to building stipulations. The certificate is provided when all ordinance conditions are satisfactorily met.
Real Property Report Without Compliance
An RPR without the Compliance Certificate omits the municipality’s assurance that structures meet local bylaws. This absence of confirmation introduces a level of uncertainty regarding a property’s regulatory alignment.
Implications of Lack of Compliance
Without municipal compliance, issues about bylaw adherence may arise. These issues potentially lead to conflicts at transaction closure, impacting sale proceeds or necessitating buyer intervention post-sale to resolve outstanding compliance concerns.
Alternatives to Compliance
In place of obtaining a Compliance Certificate, sellers may offer title insurance. Title insurance can cover some forms of non-compliance. However, it may create doubt regarding unresolved compliance matters, influencing buyer perceptions and potentially affecting the financial value of a property.
Role in Real Estate Transactions
The standard Residential Purchase Contract within Alberta necessitates a current Real Property Report at the time of closing. Buyers should ensure the inclusion of a condition within the purchase offer mandating the provision of an up-to-date Real Property Report and accompanying Compliance Certificate upon offer acceptance.
Timing and Resolution
Requesting an RPR immediately after offer acceptance allows sufficient time for any identified issues to be resolved before the completion of a purchase agreement. Arranging for a RPR provides both buyer and seller the framework to address requirements in a timely manner.
Items Excluded from Compliance Certificate
Items such as fences, retaining walls, the width of driveways, patios less than 0.64 meters high, parcel coverage, building height, or small accessory buildings do not fall under the purview of the Compliance Certificate verification. These elements are not assessed for bylaw compliance based solely on site plan evaluations.
Resubmission and Updates
An Alberta land surveyor can assist with RPR updates or resubmissions. The updated report undergoes a new municipal review, taking 1-2 business days for simple cases or up to 7-14 days for detailed examinations. The successful completion of this review may lead to the issuance of a Compliance Certificate.