… and Why do I Need One When Selling?
You have decided to sell your home. You have done everything that you needed to do including de-cluttering your home, getting it listed with the right agent and ensuring that it looks great to be seen by potential buyers. However, have you received the Real Property Report? This is something that you will need when selling a home. And it is one of those aspects that most people do not realize they need until they are in the process of dealing with a buyer who is ready to purchase.
What is a Real Property Report?
A Real Property Report is just as the name suggests. This is a report of the property that is prepared by a certified surveyor in the area. What does this property include? For one, it will include the boundary of the actual property. It will also include the description of the building or buildings on the property. It also includes information such as utility right of ways and encroachments that may be present from neighbouring properties. This is something that every seller has to include so that the buyer can see just what they are getting.
A Few Aspects about the Real Property Report
There are a few aspects of the RPR that can help many sellers when they are in the process of selling their home. These aspects include:
— The report has to be what they consider “new”. However, “new” does not always mean that it has to be done during the week or even given the month of when the seller is selling their property. As long as the seller has not made any changes to the property, such as adding more land to it, built a new structure or the like, they can use a Real Property Report that was dated from five years ago if they have it.
— Keep in mind that a new structure of a property means that you have to have building permits in order to build this. Something that is not considered permanent like a garden shed or other ground level improvements do not require a building permit. Hence, these types of structures are not something that dictates getting a new Real Property Report.
— If you do have to get a new RPR for your property, it must be accompanied by a Compliance stamp from the local municipality or a cover letter from that municipality that states everything is acceptable. This is meant to provide proof that everything on the property was put here with the proper permits and the like.
Why Do You Need This When Selling?
Why is this something that a seller has to worry about? Many sellers think that this should be the responsibility of the buyer. However, it is the responsibility of the seller to do this and have this information available to any interested buyer. Interested buyers may not stay interested in the property if you do not have this information handy to show them.
In most cases, your licensed real estate agent is going to work with you to get this completed when an offer comes in or even before if they believe that the property will not stay on the market for too long. But, why do you need this aside from this being expected by the buyer? This is to protect you!
A real property report is meant to protect you, the seller when involved in a real estate transaction. A real property report can uncover problems that may reside on the property before a buyer compares a purchase. Thereover, the buyer knows exactly what they are getting. In the event, the buyer later tries to state that you sold them a piece of property that was not as you said it was. For instance, a boundary dispute later states that there is less square footage of the yard or something along these lines, you are protected. The buyer cannot sue you for damages or the like because the Real Property Report was there and it was a full disclosure of what the buyer was buying.
How to Get a Real Property Report
As stated earlier in this piece, a Real Property Report is basically a surveyed written paper on what is going on with the property. To get this for your real estate transaction, you do need to contact a professional. However, if you recently purchased your home, in the last few years or so, then you can look at that Real Property Report to see if it still applies, if it does, then you can be worry-free.
The real estate agent that you are working with is going to provide you with the information that you need to get this Real Property Report when you are going to need it. While you may not need this as soon as you put your property up for sale on the market, once you start getting interest from buyers, this is when the Real Property Report may become a good bargaining chip to have to make the property become more appealing.
If you are ever told that an RPR is not necessary, remember the value that this offers you, the seller, along with the protection that it can offer. In Canada, a Real Property Report is required on almost every type of property sale that goes through. Thus, always get the RPR in due time when involved in real estate. Your agent will be able to tell you more, walk you through the paperwork process and answer any other questions that you may have.
The main point to remember, the Real Property Report is established for everyone. For the buyer, they know exactly what they are getting. For the seller, this ensures that the buyer never comes back on you later with legal issues for what you sold. And it basically keeps everything above the board, legal, for the entire real estate transaction.
If you’re looking to buy or sell in the Red Deer area, give Tony Sankovic a call today! 403.391.4236