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When buying or selling a house, beware of old or out-of-date Real Property Reports.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