Ask A Lawyer: What To Do About RPR Issues?
The Seller of a House is obligated to provide an RPR and Compliance in the standard Real Estate Purchase Contract.
Common issues with RPRs and Compliance:
- Sheds too close to the property line or on a Utility Right of Way. The most common issue that prevents an RPR from getting a clean Compliance Report from the City is a shed. Most people put a shed right up against their fence, either in the side yard or back yard. Makes sense, right? You don’t want a shed taking up any more yard space than needed.
What most people don’t know is that the City has “setback” requirements as well as permitting requirements for sheds. That means a shed has to be a certain distance from the property line and/or house/garage, and you often need a development permit to build a shed.
If your shed doesn’t comply with those setback requirements, or if the shed was built with no permit, the City will not give you the Compliance stamp or letter you need to provide the Buyer.
Likewise, Utility Rights of Way (URWs) often run at the rear of a property, right where the best place to put a shed is. When a shed is on a URW, the City will not give Compliance.
The solutions can be applying for the permit, applying for a variance in the setback requirement, applying for an Encroachment Agreement onto the URW, or moving the shed so it complies with the City’s requirements.
2. Bareland Condominiums
The vast majority of Condominium sales do not require the Seller to provide an RPR and Compliance. That is because most Condos are set up in such a way that the Unit owner does not actually own the land or building itself. However, there is a special class of COndo called a Bareland COndo. These are typically townhome-style, and the owner does actually own a piece of land. This type of Condo requires the Seller to provide the Buyer with an RPR and COmpliance. Many clients, and their realtors, are caught unaware of this requirement, which can lead to issues like increased costs for short notice surveys, holdbacks of sale proceeds, and delays in closing.