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Whenever a property is bought or sold a Real Property Report (RPR) can be one of the most important components of the transaction. An RPR is a legal survey of the property, done by any Alberta land surveyor, showing its size and relation to the properties around it including neighboring properties, sidewalks and streets and other structures. The RPR also contains a survey of any permanent structures on (or sometimes near) the property, such as buildings, decks, fences, sidewalks, patios, garages, etc. The purpose of the RPR is to show compliance of the property and its buildings with the appropriate municipal bylaws. The RPR is usually a large piece of paper with two stamps affixed showing compliance, one in red (surveyor stamp) and one in blue (municipal stamp of compliance for The City of Calgary as an example). A RPR in Calgary typically cost more than $550.00.

A RPR does not have to be done every time a sale or purchase is made. If a property has an existing RPR showing compliance it may be acceptable if two conditions are met: that no structures have been substantially modified (added or removed) and second, that the bylaws pertaining to the property have not changed. A common scenario is that an RPR will exist for a property but the owners have since added a deck or a fence or some other structure. This would usually necessitate a new or updated RPR. Occasionally, bylaws will change and this may affect the status of an RPR. For example, bylaws concerning window wells and their distance from the property line have recently changed in Calgary creating noncompliance for some properties.

There are a number of regulations concerning the location of structures on a property in relation to the property line, for example, with the City of Calgary, the foundation wall of the sides of a house must be 1.2 metres or more from the side yard property line. These regulations can be quite detailed, for example, the City of Calgary in most cases does not permit eaves or eaves-troughs to extend onto the neighbor’s or the city’s land. It is quite common, especially on irregularly shaped lots, that fences will not be properly placed in relation to the property line. If a structure does not comply with the property line and encroaches onto the city property or onto a neighbor’s land, an encroachment agreement can be applied for. Depending upon the situation, a fee is paid to the City of Calgary (typically from $50.00-$525.00) and an Encroachment Agreement is made (or Relaxation Permit granted). An Encroachment Agreement is registered with Alberta land titles and applies for the lifetime of the particular structure in question (the structure cannot be rebuilt or replaced in the future). In some cases, the City of Calgary may not agree to an encroachment and may insist that the structure in question be made to comply. This may involve modification or removal of the structure and this can be a costly proposition.

Sellers of properties usually are required to initial a clause stating that the property is free of encroachments or that appropriate Encroachment Agreements are in place. A current RPR can protect sellers from future legal liabilities that may arise if encroachment issues are subsequently revealed. Buyers need to be aware of any potential encroachment issues as if they agree to buy property that is not in compliance they may inherit these issues and become legally and financially responsible to correct any encroachment issues. In terms of removal of a deck or sidewalk or driveway this can be expensive. Such issues may also arise when a bank considers a mortgage or a mortgage renewal for a property.

Other compliance issues may relate to satisfying the City of Calgary’s Land Use Bylaw (LUB). This document regulates and controls the use and development of all land and buildings within the municipal boundaries. It defines the range of uses considered appropriate for any particular site and sets out basic rules for site and building design.

Normally, certificates of compliance will be required when buying or selling property in order to show that the property and structures meet municipal bylaws. A certificate of compliance is obtained from the City of Calgary (cost is presently $93.00). This is not a requirement of the city but is a requirement on a Residential Real Estate Purchase Contract you will sign with your realtor. If an existing structure does not meet regulations the compliance certificate will be refused along with directions to be followed to correct the situation.

Title insurance is also an option with closing your real estate purchase or sale, in addition to or in lieu of a RPR. Cases are individual and you should get legal advice prior to finalizing to ensure your interests are properly protected.

Thank you again for considering us!

Sincerely,

Sandra Tillier