Land and property have long been worthwhile investment choices, but their hefty price tags make it critical that you think your decision through before purchasing any of them.
Whether you plan to buy or sell property, you need to plan this carefully to avoid making poor decisions with major consequences down the line.
One important document you will encounter in real estate transactions is the real estate property report. Sellers usually give these to buyers to let them know what exactly they are getting.
But regardless of what side of the transaction you are on, it helps to understand what this document contains and why you need it, as this will help ensure a smooth sale for both parties. Read on to learn more about real property reports.
What Are Real Property Reports?
A real property report (RPR) is a legally binding document that assists real estate or property owners, sellers, the local municipality, and financing parties.
They are used in property sales to guarantee that standards are met. Due to its legal nature, the report may only be certified once it has been cleared by all the experts involved in making the document.
Real property reports indicate, specify, and standardize the physical features of a specific property. They include many detailed measurements and must be completed with the help of many professionals.
In most cases, it is prepared by an Alberta Land Surveyor but may include input from architects and local municipalities to identify the exact boundaries of each property.
What Can You Expect to See in a Real Property Report?
The first thing you should see in an RPR is a detailed outline of the property’s building, outbuildings, and adjacent boundaries.
This section will also contain the edges of the property itself, including the fences, walls, or gates placed by the owner. Likewise, you will find all these structures’ exact positions and orientations.
Additionally, details like the specific dimensions of structures and their respective distances from the property boundaries are often present. Along with the base structures, a list of current improvements is also added for the buyer’s benefit.
If applicable, sellers should disclose the location and dimensions of any encroachments and address them with the neighboring property before proceeding with any sale.
Lastly, the legal indicators must be easy to identify in the report. These may include:
- Names of the current registered property owners
- Permit stamps, copyrights, and certifications of your local authority
- Dates of both the land title and report completion date
These factors create a strong document that helps settle legal disputes and land concerns. By verifying this information in the report, you can avoid running into legal issues after purchasing land or property.
Why You Need Real Property Reports
Real property reports represent a property at a specific point in time. It outlines the surveyor’s findings to provide accurate facts for a property by the seller, buyer, and municipality.
The main reason sellers should have an RPR is that they need it before selling any property. Whether it is a commercial lot or a residential building, the RPR is a strict requirement in Alberta.
In addition, having the document ready during the sale allows you to avoid potential complications while transacting with buyers.
As a seller, you should be honest and transparent when providing an updated real property report to buyers.
In most cases, you can also expect the local authorities to inspect the report when they assess the property to check if it is still up to standards and local codes. If any other issues are spotted, you can work with buyers to address the concerns later on.
As a buyer, having an updated RPR is critical to protect you in the sale and help you make an informed decision. For one, you get to check on the specific details of the property and the surrounding land based on a professional’s assessment.
It is particularly important since encroachments can often cause problems with neighbors, later on, so you naturally want to avoid these concerns early on.
Another benefit to buyers is that they have the upper hand in boundary disputes. While you can only get the RPR after confirming and closing the sale, having the document gives you the advantage in case of such issues.
By setting boundaries within your local government’s boundaries in the RPR, you will likely win claims in these disputes.
Why Real Property Reports Matter
RPRs help buyers make more informed purchase decisions on land or property. They allow you to understand specific boundaries and measurements related to the property, so you can check for issues before making any purchase.
Likewise, you can check if improvements have been made and prove your claim in potential border disputes if any.
Overall, having an RPR on hand makes any property dealing much smoother for all parties involved in the transaction. In addition, the information outlined in the report speeds up the buying and selling process by minimizing the likelihood of municipal disputes.
Make sure you prepare this document when selling property or look for it when buying property.