REAL PROPERTY REPORTS – IS YOURS UP TO DATE?
by Wayne Chaulk BComm., Realtor

It’s still the case that many people listing their homes and country properties are surprised to realize they are required to supply a current, up to date Real Property Report, particularly sellers who have not sold a property in a long time. One of the clauses in the Purchase Agreement in residential real estate transactions requires the seller to provide the buyer with a Real Property Report which reflects the current state of improvements on the property with evidence of municipal compliance or with Relaxation Agreements granted for items of non – compliance.

A Real Property Report (RPR) is a survey drawing of the property prepared by a licensed Alberta Land Surveyor and shows the outline & dimensions of the land, buildings and improvements on the property. Any additions and improvements made to an existing or older RPR can include expansions to a dwelling, added detached garages, workshops, decks, fences, pools, hot tubs, retaining walls, A/C units, sheds, gazebos, horse shelters, paved driveways, garden structures, etc. So, if you only have an old survey which does not reflect work you have done since you purchased, you will need an updated or new RPR when you go to sell. You should ideally have it ready when you list so it can also be used in the marketing information on your listing by your Realtor.

Once completed or updated, the RPR needs to be stamped with a Certificate of Compliance, or a Letter of Compliance issued by the city or municipality where the property is located to show that the location and dimensions of the improvements comply with relevant by- laws and reflect any added items. In the case of Foothills properties, you would take your completed RPR to the MD office in High River and they will circulate it internally and if satisfied will issue a Letter of Compliance. If your RPR does not comply, say because the garage or any outbuilding are too close to the property line, an application can be made to the city or municipality to see if they will allow for a relaxation of the applicable by-law and grant a relaxation agreement, for a fee.

If the non-compliance is because of an encroachment, that is, an improvement or an addition on the property is partially situated on city or municipal district property or on a right-of-way or easement, an encroachment agreement must be obtained. These relaxation or encroachment agreements can cost anywhere between $300 – $600+. If the application for the relaxation or encroachment is refused, then the non-complying improvements must be moved in order that compliance can be obtained. This is quite rare, but can happen, especially if the non-compliance is significant.

It is therefore very important when selling a property to ensure that you have a current RPR with a compliance certificate/letter, and if you do not have same, that one is ordered as soon as the decision to sell is made in order that compliance, relaxations or encroachment agreements can be obtained as necessary before a sale actually closes. This will avoid delays in closing or monies being held back on closing pending obtaining the required agreements from the city or municipality, as the case may be. Lawyers will often hold back a few thousand to ensure an RPR gets done or updated and this can irritate the seller. Sometimes a buyer may accept an existing RPR with, for example for just an A/C unit or a small removable shed added by the seller, but most often the buyer’s lawyer will still advise their buyers to receive a fully compliant RPR which shows any and all changes to the state of the property.

Normally an RPR for a city property is about $500 – $700. For the country it can be $800 – $1400+ depending on the size of the acreage and the number of buildings and additions to the property since buying.

Feel free to reach out to us and we can supply names of survey companies if you need to call a couple to get quotes.
403 863 7920