Do You Need One to Sell Your Home?

Today, i want to talk about real property reports, specifically, what is a real property report and do I need one to sell my home at the end of this video i’ll? Let you know how you can get step-by-step instructions on ordering a real property report and a compliance certificate. I’M Dwight Streu of the Dwight Streu real estate team Streu tv is your best resource of real estate, information tips and tricks for home sellers and buyers in Alberta. Most real estate transactions will include two standard clauses that relate to the need for a real property report.

The first clause says that the seller represents and warns to the buyer, that the current use of the land and buildings complies with the existing municipal land use by law and any restrictive covenant on title.

Well, the only way to prove that property does in fact comply relates to the second clause, which says the seller or the seller’s lawyer will provide the buyer a real property report, showing the current improvements on the property. According to the Alberta land, surveyors’ association manual of standard practice, with evidence of municipal compliance or non-conformance confirming the seller’s warranties about the land and buildings, so the rear property report is a survey of the land and the improvements on the land.

Improvements include things like a house garage, deck, fencing and so on now, as per the clause, the ROR needs to be current.

That means it needs to show the property as it is today. Now, if you have one from when you bought your home and it’s 10 or 15 years old, but you’ve not made any changes outside to the property? Well, you can still use it.

However, if you have one that’s only a year old but you’ve added a deck or a garage – well, sorry, but it’s no longer current, so you’ll need to get a new one or get your current one updated. Now a real property report is required for all single detached properties and bare land.

Condominiums conventional condominiums, however, do not require a real property report.

Now the real property report can be ordered from an Alberta. Land surveyor and costs are typically in the five to seven hundred dollars for a single family home once you receive it, you’ll need to send it to the city or the county, with a request for a compliance certificate, they’re going to look it over to determine if You have all the necessary permits for improvements and that they’re all located within the property.

According to the regulations, then they’re going to advise you if your property complies or is non-conforming or neither non-conforming means the property doesn’t comply with concurrent requirements, but it did when the property was built. So there’s no need to make it comply to current regulations. Now, if the property neither complies or is non-conforming, the municipality will tell you why this is not uncommon. It could be for a variety of reasons such as not having a permit for a deck or sunroom or even a hot tub.

Yeah, even outdoor hot tubs require a permit now it could also be you have a fence or a planter or a retaining wall, and it’s encroaching on city properties. These are just a few common examples, but there’s really lots of reasons why your property may not comply.

So, what should you do if your property doesn’t comply? Do you need to make a comply?

Well, maybe – or maybe not so, here’s where things get a little tricky. If you’ve already accepted an offer with this clause, then the buyer will likely require that you make the property comply in some cases. This can be easy, but in others it can be really expensive.

So, it is important that you don’t sign an offer warranty. The property complies if you don’t in fact know whether it complies or not so to protect yourself. You should put in a seller’s condition so that if the property doesn’t comply, you’re not going to be in a position where you have to make it comply at any cost.

But frankly, the easiest and best practice is to get the real property report and the compliance certificate done before you accept an offer that way. You and the buyer both know what the issues are, and you can negotiate accordingly now, just because the property doesn’t comply, doesn’t mean you have to make it comply.

The city won’t force you to make it comply and, as long as the buyer accepts the property the way it is, you don’t have to make it comply. However, it is really important that such an agreement between the buyer and the seller is agreed to in writing. On the offer to purchase contract that way, there can be no misunderstandings when the file goes to the lawyers. So let me give you an example of how this looks in practice. We recently listed a property for sale and assisted the owner in obtaining the real property report and the city of Edmonton compliance.

Well, as it turns out, the fence at the front of the property encroaches on city property and the cost to obtain an encroachment agreement with the city is about nine thousand dollars now had we accepted an offer before, knowing this, the buyer could have and likely would Have forced our client to get the encroachment agreement regardless of the cost. However, now that we’re aware of this, we’ll tell the buyer that they need to accept the fence as edge as is, and most buyers will agree to do that.

But if not at least, we still have the option of moving the fence so that it does not encroach, and we can move the fence for much lower cost than nine thousand dollars. Now there is an alternative to providing a real proper report called title insurance, and i don’t want to get into the specifics of all what that entails, but it is a little bit cheaper and certainly less hassle. However, most buyers still prefer the real property report, because it shows them exactly what they’re getting with title insurance.

They could be inheriting a problem. They don’t even know about now.

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