A Real Property Report (RPR) is a legal document prepared by an Alberta Land Surveyor that includes a detailed representation of existing visual improvements and layouts relative to the boundaries of a property. All real estate transactions require a real property report to initiate a compliance stamp from the local authority of respective province. The stamp is only obtained on the real property report when the local authority doesn’t find any complaint issue like encroachments, structures that don’t follow local bylaws and the need to obtain relaxation permits.
All that you need to know about real property reports are answered below.
Who Needs a Real Property Report?
Property owners, who need to be informed of:
- Improvements made within the boundaries of the property and their locations on the layout plan
- Encroachments made by adjacent properties
- Municipal requirement for property compliance stamp
Property purchasers, before purchasing the property, need to be notified about:
- Property boundaries and improvement locations for the property value
- Past or current property issues or construction problems
- Visual representation of the property for sale
Municipal authorities, while giving the compliance stamp, to assist them:
- Whether the property is constructed under bylaws and fire codes
- In determining the planning and construction process
- In evaluating the relevance of property improvements that are made or planned to make.
Mortgage lenders, by receiving a stamped report, need to be informed about:
- The confirmation from the municipal authority about any property improvements
- Problems that may have to be resolved before registering for a mortgage.
How Does a Real Property Report Protect You?
If you are a property seller, a real property report is essential for protecting against any legal complications that may arise over land bylaws. A real property report informs you about adjacent property boundaries where you can notify your neighboring property owners if any bylaws for construction are violated and to resolve any boundary uncertainties.
A real property report determines the confirmation from the municipal authorities that the property doesn’t have any complications regarding bylaws, fire codes, building codes, etc. This confirmation protects sellers and makes purchasers cautious before buying the property. Also, preparing a real property report as early as possible will speed up the real estate transaction for the purchaser and the seller.
How long is a Real Property Report Valid?
The real property report is only valid until new amendments are made to the property or the adjacent property. The improvements could be installing new decks, patios, modified fences and driveways, garage, etc. In most cases, an update to the existing real property report is more economical.
Title Insurance or Real Property Report?
Duration: As long as the RPR shows the current and most recent status of the property with evidence of the municipal compliance, it is valid and reliable for even 10 years if no new amendments are made. However, the coverage under the title policy ends as soon as the insured property owner sells their asset.
Certainty: An RPR creates certainty to both buyers and sellers as the municipal authorities have confirmed that the property has met all the bylaws and requirements. Title insurance may not be the same. It can only be certain when the insurance is claimed.
What Does a Real Property Report Include?
- Legal description of the property and its location along with details of the certified architect
- The orientation of the property layout plan (North is to be marked clearly)
- Dimensions of all property boundaries
- List of improvements made to the property and their location on the layout plan
- Location and dimensions of encroachments
- Signed certification by the Alberta Land Surveyor
- Permit stamps by the municipal authority
If you choose to have a land survey for your property and prepare a real property report for your asset, schedule an appointment with MREngineering.