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Two people drawing in an architectural plan

May 15, 2024 | CREB

Navigating RPRs: A comprehensive guide

When it comes to real estate transactions, one crucial document that often gets scrutinized is the Real Property Report (RPR).  

This article outlines the legal boundaries and physical features of a property, providing vital information for both buyers and sellers.  

However, understanding how to review an RPR effectively is essential to ensuring a smooth transaction and avoiding potential legal issues later on.  

In this guide, we'll walk you through the key steps of reviewing an RPR and highlight common errors to watch out for.  

Step 1: Validity check  

The first step in reviewing an RPR is to ensure its validity. This means verifying that the document is legible and bears the stamp and signature of a licensed surveyor.  Without these elements, the RPR may not be considered legally binding.  

Step 2: Structure verification  

Next, it's crucial to verify that all structures on the property are accurately depicted in the RPR. This includes not only the main dwelling and garage but also smaller structures such as pools, hot tubs, and air conditioning units.  

It's important to note that any structure smaller than 107 square feet and not considered permanent may not be required to be included.  

When in doubt, referring to the current land surveyor's manual can clarify what should be included.  

Step 3: Accuracy check  

Take the time to ensure that there are no obvious inaccuracies in the measurements provided on the RPR. Any discrepancies could potentially cause issues during the transaction process.  

Step 4: Encroachment assessment  

One of the critical aspects of reviewing an RPR is checking for encroachments. While most encroachments are typically marked or noted on the report, it's essential to address any that may encroach onto neighbouring properties or city land.  

Determining whether an agreement or easement exists for these encroachments is vital, as it could impact the property's value and future use. You can determine whether an encroachment has been addressed by an encroachment agreement registered on the title for the property.  

Step 5: Restrictive covenants  

Pulling the restrictive covenants on the property's title can provide valuable insights into any limitations or restrictions affecting the property. 

This step is particularly important for properties purchased before 2017, as older agreements may have stricter requirements.  

Step 6: Compliance confirmation  

Finally, ensure that the RPR complies with all relevant regulations and requirements.  

This may include obtaining a stamp or letter of compliance from the city, indicating that the document meets all necessary standards.  

Be cautious of any conditional wording on the compliance documentation, as this could signal potential issues that need to be addressed.  

Common errors to avoid  

The removal of a structure does not require an updated RPR. If the RPR is in compliance with the structure, then there will be compliance without the structure, too.  

The passage of time alone does not require an updated RPR; there needs to be changes to the structures on the property.  

Do not rely solely on the seller's input regarding changes to the property, as the RPR may have been problematic when initially obtained.  

In conclusion, thoroughly reviewing an RPR is essential to any real estate transaction.  

By following these key steps and being mindful of common errors, both buyers and sellers can ensure a smoother process and minimize the risk of legal complications.  

Should you require further assistance or legal guidance regarding real property reports, don't hesitate to reach out to Kahane Law Office, at 403- 225-8810, for additional support. 

Tagged: real property report | real property reports | REALtips


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