Houses for Sale in Edmonton

"RAISING THE REAL ESTATE BAR"

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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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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Before you offer any seller a price for a property, there are a few facts you should to know. The asking price of a property does not necessarily reflect the "market value" of the home.


Below are a few questions you should check into prior to making an offer.


- Is the property tax assessment accurate? If not, find out why
- What is the latest real estate trend in that neighborhood? Are real estate prices going up or coming down?
- Have there been any recent drug busts, break and enters or other community crimes you should be aware of?
- How much was the banks property appraisal?
- Is the property staged to avoid any defects?

- Was your REALTORS® CMA inline with the asking price?

 

Click here to get a buyers real estate CMA.

 


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