As REALTORS® we are often asked, what is a Real Property Report, who needs a Real Property Report, what is compliance, how do I get a Real Property Report etc.
Here are all the answers to your burning Real Property Report Questions.
Q: What is a Real Property Report?
A Real Property Report is precisely as it sounds. It is a legal document that is prepared by a land surveyor. The survey of your land will show precisely where your property lines begin and end, as well as what structures exist on that property. The Real Property Report will also outline which structures have undergone any improvements. These improvements extend to all structures on the RPR including fences, garages, storage sheds and other dwellings. It is in the form of an illustration and will include a written statement detailing the surveyor's opinions or concerns. A Real Property report can be relied on by buyers, sellers, lenders and municipalities as an accurate representation of the improvements to your property.
Example Real Property Report:
Q: What are the benefits of a Real Property Report?
Problems are identified and can be resolved before a sale is finalized Owners have exact locations and dimensions of buildings, improvements, rights-of-way, and encroachments relative to boundaries of the property. Financing usually requires verified survey information Property transactions are simplified Development and building permits require boundary information
Q: Who needs a Real Property Report?
Property Owners - to be informed of locations of improvements within the property boundaries; to be informed of any encroachments from adjacent properties and to be informed of property compliance within local requirements.
Property Purchasers - to be informed of the boundaries of the property as well as locations that have been improved upon on the property and any problems relating to the property boundaries. With a Real Property Report, buyers will know whether their new home is too close to the property line, or a part of the garage is extending onto their neighbour's land, or vice versa.
Municipalities - to determine compliance with bylaws and fire codes, and in the planning and development process.
Property Sellers - with a Real Property Report, owners are aware of any boundary problems. They know whether their home is too close to the property line, or part of their garage is on city land or vice versa. Since legal complications may occur if a property fails to meet requirements, a Real Property Report protects the seller.
Mortgage Lenders - to be aware of conformance of improvements within municipal bylaws, and to address any problems that may have to be resolved before the registration of the buyer's mortgage.
REALTORS® - to provide a visual representation of the property for sale; to meet requirements of listing and purchase contracts, as well to have advance information to avoid delays in completing property transactions.
Q: What is Municipal Compliance, and how does it protect you?
Once a Real Property Report is completed it is sent to the local municipality to determine that it complies with the municipality bylaws. The municipality then reviews and endorses the Real Property Report and indicates whether the improvements on the property meet the requirements of the local ordinances. If the property meets the local bylaws, the Real Property Report is issued compliance, and no further action is taken.
If the real property report is given non-conformance or non-compliance, the property owner can then work with the municipality to resolve any outstanding issues identified by the municipality. It is crucial if you are planning to sell your home to discuss the Real Property Report with your REALTOR® as it will help to speed up the process of selling a property.
Q: How Long is a Real Property Report Valid, and can I get a current RPR updated?
A Real Property Report is like a snapshot of the property on the date of the survey. Changes are often made to improvements on a property or adjoining properties. These may be new or modified fences, decks, driveways, garages or other features. Only an updated Real Property Report can show their location relative to property boundaries. Therefore generally if you have not made any improvements on the property since the RPR date, then you have a current RPR. If any revisions are made to the property, the RPR will need to be updated (if possible), or a new RPR will need to be ordered.
In most cases, it is more economical to update an existing Real Property Report. Contact the land surveyor who did the original Real Property Report to see if the Real Property Report can be updated.
Q: What exactly does a Real Property Report show?
The legal description of the property and municipal address (A) Dimensions and directions of all property boundaries (B) Designation of adjacent properties, roads, lanes etc. (C) Location and description of all relevant improvements situated on the property together with dimensions and distances from the property boundaries (D) Other significant enhancements (E) Right-of-way or easements as a note on the property title to the property at the date of the survey (F) A duly signed certification and opinion by a Land Surveyor (G) Copyright (I) Permit Stamp (J) where applicable A municipality may request additional information Example:
Q: How much does a Real Property Report Cost?
There is a range of costs for a Real Property Report. Sellers are encouraged to discuss the potential survey projects with a surveyor before initiating any project. These discussions should include specifics of the project for them to develop a better understanding of the costs and complexity associated with the project.