Understanding Real Property Reports
By Anton (Tony) Suberlak, LLB
What is a Real Property Report (RPR)?
An RPR is a surveyor’s report showing the location of buildings and other permanent structures on the property, such as a house, permanent shed, fence or deck (2 feet above the ground). An RPR also identifies property lines as well as the location of any Utility Right of Ways (URW) or Encroachments. URWs are areas of a property typically have utility services running under them such as gas, electricity, or water. An encroachment refers to parts of permanent structures that extend beyond where they should on the property. For example, a fence into a neighbouring property, a garage partially built on a URW or a roof overhang that extends beyond the permissible municipal set back requirements. In most instances, depending on the extent of the encroachment, there may be an encroachment agreements negotiated either with the municipality between property owners, or what they call “relaxations” if it overhangs City property.
Why is an RPR important during a property sale?
An RPR is particularly important to a Buyer and the Buyer’s lender, as it shows compliance with municipal requirements and if there are any issues that need to be resolved prior to the registration of the mortgage. Lenders often request copies of RPRs (or accept Title Insurance as a suitable alternative) for this reason.
What is a Certificate of Compliance?
A Seller typically has the obligation to provide an up to date RPR with a stamp for compliance from the municipality when buying / selling a property. This certificate of compliance is only valid for the improvements which are represented on the RPR, and does not cover future or non-represented improvements. If changes are made from when the RPR and Certificate of Compliance is obtained to when the property is sold, the Sellers must get an updated RPR and Certificate of Compliance. As it can be a time consuming process obtaining the updated report and compliance, we recommend you take those necessary steps to obtain your RPR and compliance at the time of listing the property. This way, you might be able to avoid delays and headaches at closing time should you discover an encroachment or other problem.
As circumstances do vary from transaction to transaction, we recommend contacting our office if you require further additional consultation with respect your RPR and compliance needs as MasuchLaw LLP would be pleased to assist you.
This article is for information purposes only, and should not be construed as legal advice. If you have any questions with respect to this article, we encourage you to consult with one of our lawyers.