Beware of Old Real Property Reports

Relying on an old Real Property Report to buy or sell a house is a bad idea for many reasons. The old RPR may no longer reflect what is currently constructed on the property. If the RPR is 30-40 years old, it may not meet the current standards set by the Alberta Land Surveyor's Association.

A recent client in Edgmont found out the hard way not to recycle old RPR's. Back in 1991, his lawyer relied on a 10 year old RPR to close his real estate transaction. The City of Calgary stamped the plan stating that it met all municipal bylaws. However, the City stamp included one important condition: "Provided that all of the information in the survey certificate is accurate..."

The 1981 vintage RPR shows there are no buildings constructed on the 3 meter wide Utility Right-of-Way (URW).

This 1981 RPR shows nothing is built on the 3m wide Utility Right-of-Way.

Fast-forward to 2016 and the landowner wishes to sell his house. He was under the impression that his property had no issues.

He was not happy to find out that a large column supporting the roof of his house is constructed on the Utility Right-of-Way. In a worst case scenario, the City of Calgary has the right to remove the structure at his expense. The City might grant an encroachment agreement allowing for the structure to remain.

Our 2016 survey shows a column supporting a large portion of the roof in the Utility Right-of-Way.

Encroachment agreements are a time consuming 6-8 week process that could complicate a real estate deal.

When buying or selling a house, beware of old or out-of-date Real Property Reports.

Thinking of Selling A House? You’ll Need a Real Property Report

So you're selling your house, and your realtor or lawyer has asked you to get a Real Property Report. Why do I need this? What is a Real Property Report (RPR)?

RPR's show improvements and their distance from the property lines.

An RPR is a drawing that shows buildings and other improvements on the property and the location of property lines, easements and Utility Right-of-Ways. RPR's are a snapshot of the property and can answer questions like:

•     Is my fence on the neighbor's property?
•     Is the swimming pool underneath that powerline located in a utility right-of-way?
•     Was that new sun room built according to the City of Calgary's Land Use-Bylaw?

These are important questions. On a typical purchase contract in Alberta, the seller guarantees the property complies with all municipal land use by-laws and all improvements don't encroach on neighboring lands or easements.

How does a seller provide this guarantee to a buyer? Through a Real Property Report.

The Fine Print - Why an RPR Matters

Here are a few snippets from a standard Comfree Alberta Real Estate Purchase Contract:

4.10 Closing

REAL PROPERTY REPORT: At least ten (10) business days prior to the Completion Day, the Seller will provide to the Buyer a current Real Property Report along with evidence of municipal compliance regarding the matters described in paragraph 6.2 below.

6.2 Warranties and Representations

The Seller warrants to the Buyer that the current use of the Property complies with the existing municipal land use by-law; the buildings and other improvements on the Property are not placed partly or wholly upon any easement or utility right-of-way and are entirely on the Property and do not encroach on neighboring lands; and the location of the buildings and other improvements on the Property complies with all relevant municipal by-laws and regulations.

This Old House: New Rules Need Not Apply

If you have a house built before March 16, 1970, the City of Calgary Planning Department has some good news. All the usual setback requirements in the current Land Use Planning Bylaw don't apply.

There's no requirement to keep a 1.2 meter sideyard strip free and clear of any buildings, or to keep any building 7.5 meters away from the rear lot line. More modern houses need to abide by these rules, but for older buildings these do not apply.

According to the Planning Department, it was a free for all before the 1970's where theoretically a builder could have placed a structure anywhere on a lot.

What happened on  March 16, 1970? City Council passed Development Control Bylaw No. 7839 ushering a new era in Calgary's development.

This old house in Capital Hill was built in 1951, so the building doesn't need to be 1.2 meters away from the side property boundary. The City stamped the Real Property Report with a Certificate of Compliance.

The usual building requirments specified in today's bylaws will apply if the old structure is pulled down and a new one built, or significant renovations are made.

Air Conditioning Units - Are They on the Wrong Side?

June 1, 2008 - it's a date that every air conditioner installer should know. On that date the City of Calgary started to regulate the position of air conditioning units through Land Use Bylaw 1P2007:

Projections Into Side Setback Area

337.10 - Central air conditioning equipment may project a maximum of 1.0 metres into a side setback area:

(a) for a Contextual Semi-detached Dwelling and a Semidetached Dwelling, only where the side setback area is on the street side of a corner parcel; and

(b) for all other uses:
  (i) when located on a corner parcel; or
  (ii) where at least one side setback area is clear of all central air conditioning equipment, window wells and portions of the building measured from grade to a height of 2.4 metres.
 
In everyday english, a 1.2 meter strip of land on one side of the house must be clear.

What if you have an old AC unit that doesn't follow this rule? Will you need to move the AC unit in order to get a Certificate of Compliance for a Real Property Report?

If the air conditioning unit was installed prior to June 1, 2008, there were no bylaw rules pertaining to air conditioning equipment and therefore, proof of installation would be required to confirm the installation date.

Acceptable forms of proof are:

    An official receipt or invoice showing the installation date (not the purchase date) of the equipment.
    The builder’s purchase agreement showing record of air conditioning installation.

Note there are window wells in the 1.2 sideyard setback on the other side of the AC Unit, this would not pass the current bylaw. Luckily, the owner kept the original receipt from the installer and the City issued a Certificate of Compliance.

If you've lost the documentation, or the offending AC unit was installed after June 1, 2008, a Development Permit for relaxation is required to make the unit compliant.If you do have the invoice, the air conditioning unit can stay in the sideyard setback, it can even be placed right up to the property line.