A Real Property Report (RPR) is a legal document an Alberta Land Surveyor prepares. It’s basically a high-level drawing of the property, the boundaries, and the buildings and structures on it including homes, garages, large sheds, decks, pools, fences, etc. An RPR will also show relevant land facts such as utility rights of way, easements, and overland water drainage restrictions, so buyers know exactly what they’re buying.

The Compliance Stamp is issued once the RPR has been reviewed by the municipality or the city confirms that all structures and buildings on the lot meet the regulatory standards set by the zoning Bylaws of the municipality or city.

Why is an RPR required when a property is sold?

In the real estate purchase contract term 6. REPRESENTATIONS AND WARRANTIES

6.1 The seller represents and warrants to the buyer that:

(e) the location of the buildings and land improvements:

(i) is on the land and not on any easement, right-of-way or neighbouring lands unless there is a registered agreement on title or, in the case of an encroachment into municipal lands or a municipal easement or right of way, the municipality has approved the encroachment in writing; and

(ii) complies with any restrictive covenant on title and municipal bylaws, regulations and relaxations, or the buildings and improvements are “non-conforming buildings” as defined in the Municipal Government Act (Alberta)

This means that the seller is promising that the property complies and the document used to prove that the property complies is the Real Property Report with the Compliance Stamp.

Pro Tip for Sellers – order or update the Real Property Report and ensure it has a Compliance Stamp well in advance of listing your property.

It can take several weeks for the surveyor to prepare the report and if there is an issue with compliance it can take several weeks to remedy the issue.

If you purchased your home from a builder, you may have received an RPR from the builder without a Compliance Stamp so you will need to get the Compliance Stamp. If you have constructed a fence or a deck or installed a concrete pad or patio or a retaining wall or a garage you will need to update the RPR.

What could go wrong if you don’t have the RPR when you list your property or when you accept an offer?

• It could delay the removal of conditions. Many buyers request a review of the RPR during the conditional period.
• It could impede the buyer from getting financing. If a company or bank is lending money secured against the title to a property, then they must ensure that their investment is safe and will often ask to review the Real Property Report to confirm compliance.
• It could delay the closing or create the need for a holdback. If there is not sufficient time for the seller to ensure compliance the closing could be delayed or the buyer may ask for an amount of money to be held back from the proceeds of sale until compliance is confirmed.
• It could be costly to the seller. If there is a serious issue where the only remedy is removal of a structure the buyer may require a reduction of the purchase price or the rebuilding of the structure in a different location on the property where it would comply.

Pro Tip for Buyers – Make sure that you review the Real Property Report during the conditional period.

If the seller or the listing REALTOR® has not provided a current RPR with the listing make sure that your offer has a condition to review the RPR.

What could go wrong if you don’t review the RPR during the conditional period?

• The property may have an issue which requires a remedy which may affect your use and enjoyment of the property. The seller has committed in the purchase contract to ensure that the property complies but what if that means that garage needs to be removed? Or the beautiful wrap around deck that you love needs to be taken down?
• There may be a restriction on the lot right in the location you wanted to build a garage or a patio which will not allow you to do so.
• There might be the need for an encroachment agreement with your neighbour and the neighbour may not agree.

Pro Tip About Title Insurance – Title insurance will not cover all problems with a property.

Some sellers will offer title insurance instead of a compliant property. If there is a known defect, a buyer is better off having the seller fix it. Title insurance will not insure a known defect. Also, the insurance is not transferrable to the next owner so you would have to either buy new title insurance when you sell or if the buyer refuses to accept title insurance you will need to ensure that the property complies.

If you have any questions about the importance of Real Property Reports, ask your trusted real estate professional or a trusted real estate lawyer.

Send us your questions here: https://www.cbcompleterealestate.com/contact

Thanks for reading!

Susanita

Sellers’ market conditions continue to impact prices

City of Calgary, February 2022

 
Thanks to persistently strong sales, inventory levels in the city eased to 2,620 units, the lowest levels seen since 2006. This caused the months of supply to remain exceptionally low for this time of year at 1.3 months.
 
The tight market conditions contributed to further upward pressure on prices. The unadjusted benchmark price in January reached $472,300, a monthly gain of nearly two percent and a year over-year gain of 12 percent.
 
“Expected gains in lending rates are contributing to persistently strong demand in the housing market, as purchasers are eager to get ahead of any increases,” said CREB® Chief Economist Ann- Marie Lurie.
 
“We did see more listings this month, but it did little to change the market balance or take any pressure off prices. This was expected, as these conditions should persist for several more months.”
 
There were 2,009 sales in January, well below record levels, but over 98 per cent higher than long-term trends. At the same time, 2,476 new listings came onto the market, resulting in a sales-to- new listings ratio of 81 percent. This is far higher than levels traditionally recorded in January.
 
View the full report here: January 2022 Statistics Report
 

At Complete Real Estate Coldwell Banker, we think Calgary is the best city in Canada!

This is the first of a series of articles about, “Why Calgary is the best city in Canada.” Today’s article brings together news reports and studies about how clean our city is compared to all the other cities in the world. If you want to live in one of the cleanest cities in the world, Calgary is the top choice.

Calgary may be Cowtown and Canada’s city of oil Tycoons, but it’s been consistently ranked as one of the cleanest cities in the world. Depending on the study, Calgary has ranked in the top ten repeatedly. In 2007, Forbes magazine ranked Calgary as the world’s cleanest city. it is also known for being one of the top five most liveable cities in the world. The Economist Intelligence Unit’s Liveability Index has consistently ranked Calgary in the top five from 2009 to 2019.

In 2014 Mercer Global Financial awarded Calgary top marks on their cleanest city in the World ranking.

In 2015, the Travel Team listed Calgary as the number 1 cleanest city in the world, “The cleanest city in the world is situated between Rocky Mountains and Prairies in Canada. It also has two rivers flowing across it, adding to the beauty of the city. Its prime area of concern is energy production which explains its excellent conditions and organized community and services.

Also in 2015, The Guardian wrote about Calgary, “Calgary can also boast litter-free streets. Thousand-dollar fines for dropping cigarette butts or throwing rubbish out of a car window have had a positive impact on the city. But for Mercer, Calgary ranks top of the list due to its green initiatives. As well as following Alberta’s Waste programme, which aims to decrease how much waste is sent to landfill, environmental charity Green Calgary also promotes a greener lifestyle for Calgarians by offering tips on everything from improving your composting to how to pack a litter-less lunch. The organisation, which has been in operation since 1978, also “seeks to empower Calgarians to create healthy homes and communities through environmental education, products and services”.

In August of 2020, the World Atlas gave top honours to Calgary on its list of cleanest cities in the world. “Calgary, a city in the Canadian province of Alberta that is the country’s oil capital, is also consistently ranked as one of the world’s cleanest cities. The city was ranked number one overall on the 2014 Mercer list for clean cities. Calgary has fines in place for people who drop cigarette butts or throw trash out of car windows. Alberta’s green initiative, Too Good to Waste, started in 2007, is a program that aims to decrease how much waste goes to landfills. Calgary itself has an environmental charity called Green Calgary that promotes a greener lifestyle. For example, the organization offers tips on how to pack a litterless lunch. By 2025, Calgary intends to reduce its landfill waste by 70%.

In 2020, the Zulu Land Observer put Calgary on top of its Cleanest City list, “Calgary, Canada – Has a population of more than a million people and is currently the world’s cleanest city. The government battles to maintain the cleanliness, but achieve it by focusing on five main things, namely – water cleanliness and availability, sewage systems, traffic congestion, waste removal and recycling and air pollution.

In 2021, the EcoMastery Project put Calgary on their cleanest cities in the world list at #8, and the only Canadian city on the list. “Calgary, Canada, is considered to be the cleanest city in the world. It ranked first on Keep America Beautiful’s list of “America’s Cleanest Cities” for two consecutive years (2004, 2005). This award-winning status is a result of the fact that it has a recycling rate of over 75%, which makes Calgary Canada’s most eco-friendly city. In addition to its natural beauty and climate appeal, there are many other reasons why people consider Calgary as one of North America’s best places to live: from being close enough to ski resorts but still warm enough for year-round golfing; having jobs available in both oil fields.”

Here at Complete Real Estate Coldwell Banker, we love Calgary! It has grown and spread out over the decades we have been here, however it still retains its small big city charm. Unlike Vancouver and Toronto, where people are priced out of the real estate market, first time home buyers can find an affordable home in our city and still afford to have a decent quality of life.

Thinking of moving to Calgary and want to know more about this wonderful city? Contact Susanita de Diego at susanita@cbcalgary.ca or call 403-686-1455 with your questions and she will be happy to help you make your destination decision.