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.