Thursday 14 December 2017

Beware of Old Real Property Reports

Relying on an old Real Property Report to buy or sell a house is a bad idea for many reasons. The old RPR may no longer reflect what is currently constructed on the property. If the RPR is 30-40 years old, it may not meet the current standards set by the Alberta Land Surveyor's Association.

A recent client in Edgmont found out the hard way not to recycle old RPR's. Back in 1991, his lawyer relied on a 10 year old RPR to close his real estate transaction. The City of Calgary stamped the plan stating that it met all municipal bylaws. However, the City stamp included one important condition: "Provided that all of the information in the survey certificate is accurate..."

The 1981 vintage RPR shows there are no buildings constructed on the 3 meter wide Utility Right-of-Way (URW).

This 1981 RPR shows nothing is built on the 3m wide Utility Right-of-Way.
Fast-forward to 2016 and the landowner wishes to sell his house. He was under the impression that his property had no issues.

He was not happy to find out that a large column supporting the roof of his house is constructed on the Utility Right-of-Way. In a worst case scenario, the City of Calgary has the right to remove the structure at his expense. The City might grant an encroachment agreement allowing for the structure to remain.

Our 2016 survey shows a column supporting a large portion of the roof in the Utility Right-of-Way.
Encroachment agreements are a time consuming 6-8 week process that could complicate a real estate deal.

When buying or selling a house, beware of old or out-of-date Real Property Reports.