A Real Property Report (‘RPR’) is a document that is prepared by a survey company; it shows the structures plotted within the borders of property and outlines where they are located in relation to the border lines.
The report is then sent to the property’s municipality to determine whether the structures (including buildings, decks, fences, garages, sheds, etc.) comply with municipal bylaws and have the required building permits. If all regulations are met, the municipality will provide a Compliance Certificate.
It is imperative that a seller obtains an RPR prior to accepting an offer from a buyer for two main reasons: (1) The standard Real Estate Purchase Agreement states that the seller will provide the buyer with an RPR prior to the deal closing; as such, it is highly recommended to complete this sooner rather than later. This will likely reduce costs and alleviate stress for both parties; (2) If the report indicates that there is an issue with compliance after the buyer makes an offer, the issue will need to be rectified immediately and at the cost of the seller. If the buyer is aware of the issue prior to making an offer, they may negotiate with the seller and pursue additional concessions to compensate for the lack of compliance.
If you are selling your home and have questions or concerns about your Real Property Report with Compliance, contact Estate Connection Law Office today at 780-458-8228 or [email protected] Remember, we are here to help!