Ask A Lawyer: What Are Real Property Reports?

When selling a house, a part of the standard purchase contract is a clause obligating the Seller to provide what is called a Real Property Report (“RPR”) and Compliance. 

What are Real Property Reports?

A RPR is a survey of the property showing the location of all structures in relation to the property lines. It also will depict an Utility Rights of Way or encroachments onto a neighbouring lot, or City property. 

Compliance is a Municipality’s stamp (or letter) or approval for that survey and the structures depicted. All Municipalities have restrictions for what can be built and where. The Compliance review by the City (or Town, County, etc.) is where they ensure that all structures are built in the proper place and received permit approval. 

These documents reassure the Buyer that the property they are purchasing has things in the proper place, and they do not have to worry about a house or garage that is built part way onto a neighbour’s land and will have to be torn down (it does happen!), or a deck that was built too close to a property line with no permit. 

RPRs and Compliance can get expensive. $600.00 to $700.00 for the RPR, and another $200.00 for the Compliance application are typical costs. If the City comes back with things that need to be addressed before they will give their Compliance stamp, the cost will go up from there. 

In recent years there has been a rise in popularity for “Title Insurance” to be provided by the Seller instead of an RPR and Compliance. The cost to the Seller is much lower, if a Buyer will agree to the substitute.

Check back later for information on Title Insurance, as well as common issues and fixes for an RPR that does not receive Compliance approval.

Contact Kaup Law Office to make an appointment to get started on your professionally drafted Will today.