The Importance of having a Real Property Report for Sale
/Planning to sell your home? Before you do, keep in mind it is important to have an current real property report as it could delay and even place your real estate transaction at risk.
A Real Property Report or Surveyors Report is a legal document that clearly illustrates the location of significant visible improvements relative to property boundaries from decks, fences, air conditioning units, window wells to sheds.
In accordance to the Residential Real Estate Purchase Contract and/or CBA Real Estate Subsection Standard Guidelines, Sellers are obligated to provide a current real Property Report with evidence of municipal compliance or non-conformance as part of the normal closing documents. This document verifies the Sellers warranty to the Buyer that all buildings and other permanent structures on the lands are within the boundaries of the property, do not encroach into a utility right of way or other easement, and comply with all municipal setback requirements. A building encroachment or non-compliance issue that cannot be remedied prior to closing creates a risk that either the municipality or an affected neighbor will require the structure to be moved or demolished.
If a Real Property Report cannot be located then a new one should be ordered by the Seller or the Seller’s lawyer and submitted to the municipality for confirmation of compliance as soon as possible. By ordering a Real Property Report early, it will minimize the cost involved and, more importantly, allow the Seller to determine and further rectify building location problems prior to the closing day.