Without a doubt, real property reports (RPRs) are the greatest source of pain and delay on real estate transactions in Lethbridge. For reasons I can only fathom, a lot of REALTORS® are of the belief that the RPR is ‘for the lawyers to deal with’ at closing. Yet, when you sign a listing agreement, it states very clearly that the homeowner is to provide the brokerage an accurate RPR and compliance letter within ten days of signing the listing. There is good legal reason for this. Let’s dive in.
The RPR is a land survey showing the boundaries of the property and the structural improvements therein. The compliance letter that accompanies your RPR is written evidence that those structures are compliant with local bylaws and permitting regulations. When you accept and sign an offer to purchase on your home, you are agreeing to fine print stating that you will provide the buyer’s lawyer, prior to closing, these documents, and that these documents will be accurate to the current state of the property.
In short, an accurate and compliant RPR forms part of your legal obligation to the homebuyer.
The RPR/Compliance package is really the lawyer’s only legal evidence of what is being contracted for purchase. (No, the listing sheet doesn’t count.) Moreover, homebuyers aren’t keen to inherit permitting or regulatory issues when they buy a home. Nor do they want to pay for a new RPR and compliance letter when they go to sell.
But there’s more to this than paperwork…
When the buyer sits down with the lawyer before closing day, the lawyer will review the Real Property Report and City of Lethbridge compliance letter. If issues are uncovered in that meeting, such as lack of permits, a non-compliant deck, or a garage that was never permitted, we have a problem. A very expensive one. Watch my video to learn more about RPRs and how to prevent massive costs and delay on the biggest transaction of your life. Then get in touch if you would like us to help you with a smooth sale on your home!
Nothing here is intended to be legal advice. For legal advice on real property reports, municipal compliance and other matters related to your real estate transaction, always consult a lawyer directly.