When selling a house, ordering a Real Property Report isn’t on most people’s minds. You think pricing and staging, not land surveys and city compliance. (Hey, can’t say I blame you.)
The truth is, you’ll probably need one—and it will likely cost between $600 and $900. It can be a necessary part of selling a home and typically takes four to six weeks to complete, so you’ll want to start early. Below, you’ll find the Top 5 things to know about this important process.
1 - You may have a Real Property Report on file from when your home was purchased. Although they don’t expire, it’s only considered current if no changes have been made (e.g. a new fence, shed or deck).
2 - A Real Property Report is a land survey that accurately shows such elements as property lines, house placement, porch, etc., so buyers know exactly what they’re getting. Once complete, it’s sent to the City for a compliance check.
3 - In preparing a Real Property Report, an Alberta Land Surveyor will:
- Search the title of the property
- Search relevant encumbrances registered against the title
- Search plans related to the boundaries of the property
- Perform a field survey to determine the dimensions of the property and location of improvements
- Prepare a report/diagram reflecting the results of the field survey and title research
4 - The Real Property Report must be sent to the City for a stamp of compliance. Compliance means all permits are in place for everything on-site. But if a property is non-compliant, you may be responsible for disclosing or fixing the issues prior to sale. Examples of common reasons for non-compliance can be found here.
5 - If you have any questions or concerns about your Real Property Report, it’s important to discuss them with your REALTOR® and/or real estate lawyer. This helps prevent a delay in the sale, as well as potential headaches while preparing for the new owners’ possession.
A final thing to consider is title insurance, which can cover unknown non-compliance issues or hidden deficiencies that don’t show up on a Real Property Report. Think of it like a standard insurance policy, only it protects against future discoveries about the home. You can learn more about that here.
It’s a lot to take in, I know. But as your Realtor, I’ll keep things simple and make sure you don’t miss a step.