By Kevin Grenier
A survey or real property report is often required to sell a property. The standard AREA® (Alberta Real Estate Association) purchase contract allows for the seller to provide one including compliance or non-conformance from the local municipality.
If the seller has a copy of the survey from when they purchased the house and it reflects the current state of the property including location of any structures, fences, pergolas, etc. then the seller's lawyer will typically have the seller sign an affidavit
saying that nothing has changed since the survey was done. In this case a new survey will usually not be required by the buyer's lawyer.
In the event that it doesn't however, for example the house was purchased new and since then a fence has been constructed and perhaps a deck, these are not noted on the original survey, so a survey company is hired usually at the cost of the seller and does up a new drawing showing the location of the house and any other structures, etc on or under the property.
Under the property? Yes like a utility right of way which is important to know in case the new buyer is looking at building say a garage on the lot. A utility right of way may stop such plans because in the event the municipality needs to replace the utility line, say a gas line, they are not responsible for any structures on top of the line and in most cases won't allow a structure such as a garage to be constructed in the first place.
Now once it is determined that a new survey is required and that new survey is completed, it is then submitted to the municipality or city. They then review the survey, check that they have all permits in place for all structures noted and that all have been passed or conform to the current bylaws.
In the event that the structure, a garage, was built in the correct location according to the bylaws of its day but those bylaws have changed then it would be a non-conforming structure and in this case it would pass however you wouldn't be able to tear it down and build another garage in the same spot. The new structure would have to comply with the new bylaws. which may require it to be built farther away from the property line.
So what does all this cost, the real property report or survey and the compliance or non-conformance certificate from the municipality? That depends on a few factors, one being how much time you have till the property closes or in other words the buyer's take possession.
These prices I just got from a reputable survey company I've used often in the past, Geodetics Surveys in Edmonton at 780-465-3389 and are approximate numbers and are subject to change. They apply to the average single family detached home in Edmonton.
Real Property Report (RPR) & compliance (or non-conforming) on regular basis - $616.10
RPR on rush & compliance on regular basis - $721.10
RPR on regular & rush compliance - $726.10
RPR & compliance on rush basis - $831.10
Without either on a rush the timeline would be aprox. 6 weeks. Geodetics can
guarantee 2 weeks
If you are selling a condo, unless it is a bare land condo, you won't typically need an RPR with compliance.
Title insurance can be used in addition to or in some cases instead of but please seek legal counsel on this whether you are the buyer or the seller.
Sometimes the seller will insist that the buyer pay for the RPR & compliance or accept an older report with or without changes. Again seek legal counsel before you make any decision.
Many buyers are now being advised to get an RPR with compliance or non-conformance from the seller and to pay for title insurance themselves so they are doubly protected.
This in my experience is one of the least understood and potentially the most problematic areas of a residential sale which can cause hardship for either the buyer or seller or both if not handled correctly.
For more information on this subject including title insurance, basement permits, or any other real estate related questions please contact me. Please note I am not a lawyer I am a licensed REALTOR® in the province of Alberta, any questions better suited to be answered by a lawyer will be directed to one.
I hope this sheds some light on one of the reasons seeking professional advise can save you a lot of time, money and hassle.
Sincerely,
Kevin Grenier REALTOR®, ABR® SRS® (Accredited Buyer's Realtor, Seller's Representative Specialist)
780-893-0269
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