A holdback clause in a real estate transaction is a provision in the contract that allows the buyer to withhold a portion of the purchase price until certain conditions are met by the seller. The purpose of a holdback clause is to ensure that certain obligations are completed by the Seller. These obligations may include… Continue reading Holdback Clause in a Real Estate Transaction: 3 Examples
Buying or selling a home comes with paperwork, including the important statement of adjustment. The statement of adjustment outlines all financial adjustments to the purchase or sale price. These adjustments include any credits or debits including deposits, property taxes, and condo fees. Understanding what these costs are and who pays them is essential to ensure… Continue reading What is a Statement of Adjustments?
Are you ready to put your house on the market? Congratulations! As you start the process of selling your home, a common question sellers and buyers ask is why do I need a real property report (RPR)? An RPR is an important document that helps protect both the seller and the buyer. It provides evidence of the condition of the property and its boundaries. Here’s what you need to know about why an RPR is important for any residential sale.
Simply put, an RPR is a legal survey that outlines the boundaries of a property and details any encroachments. The survey includes fences, decks, or other structures that are located within the boundaries of your property. A surveyor prepares the RPR by visiting your property to measure your property’s boundaries and the structures located on it. The surveyor will then prepare a report detailing what they have found. This report includes any encroachments of structures onto or from neighboring properties.
Having an RPR helps protect both buyers and sellers in a home sale. For buyers, an RPR gives them peace of mind knowing that they are purchasing exactly what they have agreed upon with no surprises down the line. For sellers, an RPR helps ensure that any existing encroachments on their property won’t come back to haunt them after the sale has been completed. Additionally, having an RPR can help prevent potential legal action between the buyer and the seller should there be any disputes over boundary lines after closing day has come and gone.
The seller is generally responsible for paying for the RPP. The Alberta real estate contract requires that the seller provide the RPR. Unless the Seller specifically negotiates with the seller not to provide the RPR, the seller is required to provide it. Sometimes a buyer may be willing to accept title insurance in lieu of a real property report.
An RPR can be valid so long as no changes or alterations have been made to the property. Such changes could include installing new decks, patios, fences, driveways, and garages.
In summary, as a seller, providing a buyer with an up-to-date real property report during the home-selling process is essential to ensuring both parties are fully informed and protected during this big transaction. An RPR can help provide peace of mind for everyone involved in the sale and smooth out any potential issues down the line concerning boundary lines or encroachments on either side of the transaction. If you’re looking to sell your home soon, make sure you get an updated real property report before making it official!
Hi! I’m Erin Crocker. I’m a real estate lawyer with over 10 years of experience in Alberta and British Columbia real estate law. I love technology and efficiency. I’m on a mission to create a modern, digital closing experience for buyers and sellers through technology, transparency and sharing knowledge.
Title insurance is an important step in protecting yourself financially when you own a home Without title insurance, you could be vulnerable to title fraud, which can have serious financial ramifications. Let’s take a look at what title insurance is and how to buy it so that you can protect yourself from title fraud. What… Continue reading How to Purchase Title Insurance to Protect Yourself from Title Fraud
Are you a foreigner looking to purchase property in Alberta? On January 1, 2023, the Canadian federal government introduced a two-year ban on the purchase of residential property in Canada by non-Canadians. As a result, there are additional steps and considerations that must be taken into account when buying a home in Alberta as a… Continue reading Buying Property in Alberta as a Foreigner
Real estate closings are a huge milestone that buyers and sellers alike look forward to. It’s the day when all the preparation, paperwork, and negotiations are finalized, and a new chapter in life begins! The documents exchanged at closing are some of the most important legal documents you’ll ever sign, so it’s vital to understand… Continue reading Seal the deal! The essential documents you need at your real estate closing
You’ve been searching for the perfect home for months, and you’ve finally found it. You put in an offer to the seller, only to be met with a counteroffer. Frustrating as it may be, understanding why sellers make counteroffers is essential if you want to land your dream home. Let’s look at what goes into… Continue reading How to get an offer accepted for less than the asking price
Buying a home is one of the most important decisions you’ll ever make. With so many factors to consider, it’s easy to overlook one of the most important points: what kind of effect will your new home have on your ability to obtain homeowners insurance? Understanding the things that could affect your coverage and premiums… Continue reading 5 things that could affect your home insurance coverage when buying a home
With the world increasingly going digital, it’s no surprise that even the real estate industry is starting to feel the effects. More and more people are beginning to close on their homes virtually, and there are plenty of benefits that come along with this new method. Here are just a few reasons why you should… Continue reading 3 Advantages of a Virtual Real Estate Closing
When you’re buying a property, you want to make sure that you’re getting exactly what you’re paying for—and that there are no hidden surprises (like faulty wiring or an illegal second kitchen). To protect yourself, you need to do your due diligence and get either title insurance or a real property report (or both!). But… Continue reading Should I accept title insurance in lieu of a real property report?
