Homes for Sale in Edmonton

AUDREY ABUAN - RE/MAX Real Estate REALTORĀ®

Cell: 780-910-5179
Email: aabuan@remax.net

 

What Happens if your Real Property Report does not Comply?

 If you are selling or buying a home and have been told that there is no compliance or you have a non-confirming property, Don't panic. Below is a list of benefits and drawbacks with a non-confirming property which will help you make a more informed decision.

Benefits of Non-Compliance or Non-Conformation

  • It provides documentary evidence supporting the warranties in a real estate purchase contract, and regarding issues of compliance with land use and development bylaws.
  • It provides certainty for both the buyer and seller at the time of closing regarding compliance with development issues.
  • It provides the opportunity for the buyer to have the seller remedy any deficiencies in this regard prior to or in conjunction with the closing.  
  • If a buyer decides to accept a certain deficiency, it provides both the buyer and the seller with the certainty of knowing exactly the eficiencies they are accepting.
  • It can be used to address of the above issues regarding the structures and other matters shown on the RPR, even if a compliance certificate or letter is not current (the RPR is missing structures that have been added or altered since the RPR was prepared).
  • It  can be reused, provided there are no changes to the property, the buyer can use the same RPR with compliance when they sell the property. Even where there have been changes, the same compliance can be used to support the warranties in the AREA contract to the extent of all the s
  • tructures and other matters on the existing RPR with compliance.

Drawbacks of Non-Compliance or Non-Confirmation

  • It only provides information on compliance with municipal land use and related bylaws for the exterior dimensions of structures on the land.  
  • It does not provide any information that allows a municipality to confirm or deny compliance with any interior developments.
  • It does not provide any assurance of compliance with restrictive covenants on title and compliance with any other municipal bylaws aside from the exact bylaws covered by the compliance stamp or letter.
  • A request to the municipality for a certificate may lead to a requirement for substantial alterations, relocation or destruction of certain structures.
  • Depending on the nature of the deficiencies, the buyer may not be able to recover any costs for required alterations or destruction from the seller.
  • Many municipalities will only offer a limited form of compliance or non-conformance, and Some municipalities no longer provide compliance or
  • non-conformance stamps or certificates.
  • Under the AREA contract, the warranties provided by the seller only relate to development issues and not building code issues; and while there is some debate amongst lawyers on this issue, most take the view that any building code deficiencies including the lack of building code permits are the responsibility of the buyer.
  • Can take several weeks to obtain and even if a rush fee is paid, it can still take several days.

Read more on Real Property Reports
Read more on Non-Compliance and Non-Confirmation
Read more on Title insurance

 

 

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Should I get a Real Property Report When I sell my Home?

Traditionally a Real Property Report (RPR) and compliance letter or stamp (or non-conformance, referred to throughout as simply compliance) has traditionally been the preferred method of providing security to a buyer.  However, as some municipalities no longer offer compliance documents, the contractual requirements to provide a RPR with compliance documents are increasingly difficult for sellers to meet.  It is important to ensure that you are aware of the alternatives, such as title insurance, and that the appropriate steps are taken to ensure that all parties involved are properly protected.

RPRs, compliance, and title insurance are all useful.  On their own, each has its distinct benefits and both buyers and sellers are best served when all three are in place.  However, this is often not practicable or possible. It is important for buyers and sellers to understand both the benefits and shortcomings of each one.

Benefits of a Real Property Report

  1. It provides a complete disclosure of all structures on the property, the exact location of property lines and the location of fences.
  2. It discloses the exact location of non-physical items such as easements and utility right-of-ways.
  3. It shows any encroachments by the subject property onto neighboring property (and vice versa), or easements and the exact imensions
  4. of the encroachments.
  5. It provides certainty to the buyer so they know exactly what they are buying and an opportunity to remedy any deficiencies such as encroachments before or concurrent with the closing of the purchase and sale.  
  6. If a buyer decides to accept a certain deficiency, it provides both the buyer and the seller with the certainty of knowing exactly the deficiency they are accepting.
  7. Provides documentary evidence to support the warranty in the standard AREA contract.
  8. Even an RPR that is not current (missing structures that have been added or altered since the RPR was prepared) can be used to address all the above issues regarding the structures and other matters shown on the RPR.
  9. The RPR can be reused provided there are no changes to the property.

Drawbacks of a Real Property Report

  1. On its own, it does not provide any disclosure or information as to the compliance issues which are warranted by the seller in the AREA contract.
  2. It does not provide any information on the interior portion of any of the structures of the property.
  3. It does not provide any information on “hidden items” on the property, such as the location of septic tanks or other items below ground level.
  4. The cost of an RPR is typically many times higher than the cost of title insurance, especially in outlying areas.
  5. During boom times in the oil industry, no matter the price someone is willing to pay, it can be extremely difficult to find a surveyor to do an RPR in certain parts of the province.
  6. It does not deal with many of the items covered by title insurance.
  7. It can take several weeks to obtain and even if a rush fee is paid, it can still take several days.

Read more on Real Property Reports
Read more on Non-Compliance and Non-Confirmation
Read more on Title insurance

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What is a Real Property Report?

A Real Property Report (also known as the RPR) is a legal document that clearly illustrates the location of significant visible improvements relative to property boundaries. It is a plan or illustration of the various physical features of the property, including a written statement detailing the surveyor’s opinions or concerns.

Who needs a Real Property Report?

Part of the standard real estate contracts in Alberta will have a term in the document stateing the seller will provide a current real property report with compliance report to the purchaser upon closing. Prior to putting your home on the MLS System and/or Realtor.ca, Sellers should order a new RPR to protect themselves from potential future legal liabilities resulting from problems related to property boundaries and improvements. Your REALTOR® can assist you with this process to ensure your property complies with municipal requirements.

Do I need a Real Property Report for a Condominium?

Bareland Condominiums require Real Property Reports. Conventional Condominiums do not require an RPR.

How does a Real Property Report protect you?

Purchasing a property may be the largest financial investment you ever make. With a Real Property Report, owners are aware of any boundary problems. They know whether their new home is too close to the property line, or part of their garage is on their neighbour’s land, or vice versa. Since legal complications may occur if a sold property fails to meet equirements, a Real Property Report protects the seller.

What is on a Real Property Report?

The legal location description of property and municipal address, dimensions and directions of all property boundaries, any improvements on the property, right-of-way or easements, any visible encroachments, a duly signed certification and opinion by an Alberta Land Surveyor and a permit Stamp where applicable.

How much does a Real Property Report cost?

The amount of work to prepare a Real Property Report varies between properties. Lot size and shape, number of buildings, natural features, age and availability of the property boundary information all affect the cost. However, if you are planning on selling your home in the near future, the sooner you order your Real Property Report, the more economical it will be plus any problems can be identified and resolved before a sale is finalized.

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There has been a long battle between between TREB (Toronto Real Estate Board) and the Canada's Competition Bureau to keep certain sales data under lock and key. John Pasalis with Realosophy Realty in Toronto says he's ready to make public on his website once-protected real estate data.

 

I found this article to be interesting article and foresee it as a huge invation of privacy for all home sellers. One of the reasons to hire a real estate agent is to protect the sellers information. I strongly feel this information should not be disclosed due to stigmatizing properties and invasion of personal information.

 

When buyers purchase a home, everthing physical about the property should be disclosed and the real estate agent should provide all relevant FACTS about the property and the prices of recently comparable homes sold. However, providing all of the history of a property is no ones business except the sellers including how long it has been on the market, any price adjustments, the original purchase price or the sellers contact info.

 

In a slowing economy, homes here in Edmonton tend to stay on the market longer and buyers do not need to take advantage of a seller. Buyers are purchasing a home and should not be in a position of knowledge to take advantage of a seller who needs to sell. Have a little more compasion, there is more to life than getting an uber deal!

 

read more... http://www.cbc.ca/news/business/real-estate-treb-crea-sales-data-1.3884233

 

*Note* The Government of Canada's Privacy Act is as follows..

 

Interpretation

In this Act,

administrative purpose, in relation to the use of personal information about an individual, means the use of that information in a decision making process that directly affects that individual

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Another Great Month for May 2016 and we got the stats to prove it. Year to date REMAX helped 6877 clients buy or sell a house, now that is impressive when you actually compare what the other real estate companies have accomplished. Our market share is 42.84% and growing each and every day with the help of our Remax members. If you are thinking about buying or selling real estate, remember, every Remax Real Estate Agent in Edmonton donates a portion of thier commission to the Children's Miracle Network. Since 1992, Remax Agents have raised over $147,000,000.

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