Real Property Reports
What is a Real Property Report (RPR)?
It is a document prepared by a registered member of the Alberta Land Surveyors Association. It is a visual representation that illustrates the boundaries, improvements and encroachments, right of ways, and easements on a property.
Why is an RPR necessary?
For a seller, it identifies unknown issues with property and gives them an opportunity to remedy problems before selling and ultimately may assist in preventing future litigation. It also provides disclosure/documentation of known issues.
For the buyer, it identifies boundaries, discloses any issues with the property or provides confirmation that the property meets municipal requirements.
For the REALTOR®, it identifies issues related to title that may impact a sale, provides disclosure of boundary issues that might create future litigation, and meets the AREA contract requirements.
Financial institutions often request RPRs before they will provide financing.
Lawyers cannot close on the sale if an RPR is unavailable, is not current, or indicates problems.
When should my client get an RPR?
If the client has an existing RPR with compliance stamps and no improvements or adjustments have been made to the property, they may not need a new RPR. However, if there have been changes to the property they may need to get a new Real Property Report. Even if there have been no changes, financial institutions may request a current RPR.
Be aware that obtaining a current RPR can be time consuming. The completion of the RPR can take several weeks. Added to that the time it takes to obtain a compliance stamp from a municipality can take several weeks. Not having a current RPR can hold up a closing.
For that reason, REALTORS® should ask their sellers about current RPRs as soon as possible.
Who is obligated to get an RPR?
Under the AREA purchase contract the obligation to provide a current RPR lies with the seller of the property, unless specifically contracted otherwise.
No comments:
Post a Comment