Alberta Real Estate Guide: Real Property Reports & Considerations
July 6, 2023
Real Estate
When it comes to purchasing real estate in Alberta, there are numerous considerations to be aware of before making a decision. One of the most important documents to obtain is a Real Property Report (RPR). An RPR is a legal document that outlines the boundaries of a property, any existing structures, and any encroachments onto neighboring properties. It is essential to have this document in order to ensure that the property is legally compliant and that there are no potential disputes with neighboring landowners. In this blog post, we will cover everything you need to know about Real Property Reports and other considerations when purchasing real estate in Alberta.
Understanding Real Property Reports (RPRs)
Real Property Reports (RPRs) are a fundamental aspect of purchasing real estate in Alberta. An RPR outlines the boundaries of a property, any existing structures, and any encroachments onto neighboring properties. It is important to understand the contents and significance of an RPR before making a purchase decision.
An RPR typically includes a survey of the property, including the location and dimensions of buildings, fences, and other structures. It also shows any public utility right-of-ways that might impact the property or its use. An important aspect of an RPR is that it identifies any encroachments that may exist. An encroachment occurs when a structure, such as a fence or building, extends beyond the legal boundaries of a property and onto neighboring lands. Encroachments can lead to legal disputes with neighbors and can negatively impact property values.
When reviewing an RPR, it is important to look for any encroachments and review the legal description of the property to ensure that it matches the description provided on the RPR. Any discrepancies should be addressed with the seller or a legal professional before finalizing a purchase agreement. It is also essential to ensure that the RPR is current and up-to-date. If an RPR is outdated, it may not reflect any changes made to the property since the last survey was conducted.
In addition to understanding RPRs, it is also important to consider other factors when purchasing real estate in Alberta. These may include zoning regulations, environmental concerns, and any easements or rights-of-way that affect the property. It is recommended to work with a certified real estate professional or legal expert who can assist with reviewing and understanding all aspects of a potential real estate purchase.
Why are RPRs important when purchasing real estate in Alberta?
Real Property Reports (RPRs) are critical documents that buyers of real estate in Alberta should pay close attention to. RPRs outline the boundaries of a property, any existing structures, and any encroachments onto neighboring properties. They provide a detailed and accurate summary of a property’s features, highlighting areas of concern that require attention before the purchase is final.
The most crucial aspect of an RPR is that it identifies potential encroachments that could jeopardize the property. An encroachment is when a property structure, such as a fence or building, extends beyond the legal boundaries of a property and onto neighboring lands. Encroachments can result in legal disputes with neighbors, the potential loss of land, or cause a reduction in property values. An RPR helps buyers identify encroachments early, enabling them to address the issues before purchasing the property.
RPRs also provide an accurate representation of the property’s features, including any buildings and structures, such as fences, pools, decks, or sheds. This information enables real estate buyers to understand the exact dimensions and legal boundaries of the property and make informed decisions about the asset’s value.
When reviewing an RPR before purchasing a property, it is advisable to take note of any discrepancies and concerns that arise. You may want to refer to the land title document and municipal zoning maps to ensure the RPR is up-to-date and valid. Working with a trusted real estate professional or legal expert can provide the necessary assistance to understand all aspects of the property purchase, including RPRs.
In summary, RPRs are essential in real estate purchases. They provide buyers with crucial and detailed information about a property that helps them make informed decisions. Through the information acquired from RPRs, buyers can minimize future legal complications, budget appropriately, and confidently sign off on the purchase of their new property.
Common issues found in RPRs and how to address them
In this section, we will discuss the five most common issues found in RPRs and ways to address them:
1. Non-compliant structures or additions – If the RPR identifies an unauthorized structure or addition, it can create legal and zoning issues. Buyers can address this issue by getting a certificate of compliance or removing the non-compliant structure before closing the deal.
2. Encroachments – An encroachment occurs when a structure, fence, or easement extends onto someone else’s property. Buyers should consult with a lawyer to determine their best course of action, which may include negotiating with the neighbor or purchasing additional land to rectify the issue.
3. Property line disputes – Property line disputes can arise if the RPR shows a discrepancy in the property lines. Buyers should carefully review the RPR and seek legal advice to resolve any disputes before making an offer.
4. Utility and drainage right-of-way – Sometimes utility companies install pipelines or other infrastructure that cross or pass through a property. Buyers should review the RPR to determine if there is an easement or right-of-way on the property, which could impact utility or drainage access.
5. Incomplete or missing RPR – If the seller does not have a current RPR, buyers should request one to ensure they have a comprehensive view of the property’s condition before making an offer.
In conclusion, buyers should carefully review and consider the information provided in the RPR before purchasing a property. Addressing any issues identified in the RPR can prevent legal and financial complications in the future.
Other considerations when purchasing real estate in Alberta
When purchasing real estate in Alberta, there are additional factors to consider beyond Real Property Reports (RPRs). These include:
1. Zoning Laws – Municipal zoning laws can impact how a property can be used, built upon, or developed.
2. Inspection Reports – A professional inspection report can provide buyers with critical information about the property’s condition, identifying any potential costly issues in the future.
3. Title Search – A title search is essential to ensure that the seller owns the property, and there are no liens, legal disputes, or unpaid taxes on the property.
4. Homeowner Associations (HOAs) – For properties within an HOA, buyers must review the bylaws, fees, restrictions, and regulations to ensure they are suitable for their needs.
It is crucial to take the time to review all necessary documentation and information, including RPRs, inspection reports, and title searches, to ensure a smooth and hassle-free purchase process. Moreover, working with a reliable real estate professional can help guide and assist buyers in navigating the complexities of these purchasing considerations.
In conclusion, beyond RPRs, several other critical factors require consideration when purchasing real estate in Alberta. Ensuring that all relevant documentation is up-to-date, and the property adheres to zoning laws is vital in making informed decisions. By working closely with reliable professionals, buyers can minimize future legal and financial complications, making their property purchase a successful investment.
The importance of working with a professional real estate agent and lawyer
One of the most critical considerations when purchasing real estate in Alberta is working with an experienced real estate agent and a knowledgeable lawyer. Here are some reasons why:
1. Expertise and knowledge – Real estate agents and lawyers understand the complexities of the buying process and can provide valuable guidance and advice. They have the expertise and knowledge to ensure that all legal requirements and regulations are met, protecting the buyer from any potential legal and financial complications.
2. Access to resources – A real estate agent can provide access to valuable resources, including listings that match the buyer’s requirements and market data. Additionally, lawyers have access to legal resources that can help resolve any issues that may arise during the buying process.
3. Negotiating power – Real estate agents are skilled negotiators and can help buyers secure the best deal possible. Lawyers can also negotiate on behalf of their clients to ensure that all legal requirements and obligations are met.
4. Professional network – Real estate agents and lawyers have an extensive professional network that can help buyers with various aspects of the buying process, including home appraisers, property inspectors, and mortgage brokers.
5. Peace of mind – Purchasing real estate can be a significant investment, and working with a real estate agent and lawyer can provide peace of mind knowing that the buying process is being handled professionally and efficiently.
Conclusion: The significance of due diligence when investing in real estate in Alberta
Investing in real estate in Alberta can be a rewarding experience, but it requires a high level of due diligence. It is essential to conduct thorough research and consider all factors that may affect the property’s value, such as location, market demand, and potential issues with the property.
The importance of due diligence cannot be overstated when investing in real estate. It involves the comprehensive investigation of all aspects of the property and the buying process, including:
1. Property inspections – Having a professional inspection of the property can uncover hidden issues that may affect its value or safety.
2. Checking zoning and land-use regulations – Understanding the zoning and land-use regulations of the area can prevent any future surprises and ensure the property fits your intended use.
3. Title search – A title search can uncover any liens, encumbrances, or easements that may affect the property’s value or ownership.
4. Financial analysis – Analyzing the property’s finances, such as taxes, insurance, and potential rental income, is crucial in determining its overall value.
5. Market analysis – Studying market trends, demand, and supply can help predict the property’s future value and potential for growth.
In conclusion, due diligence is crucial when investing in real estate in Alberta. It involves a thorough investigation of all aspects of the property and the buying process to ensure a successful investment. Working with a real estate agent and a lawyer with extensive knowledge and experience in the industry can provide valuable guidance throughout the process.
