REAL PROPERTY REPORT & COMPLIANCE CERTIFICATES
A Real Property Report (RPR) shows the boundaries of a property and the location of the buildings and other structures on the property. It also shows any Utility Rights of way, Easements and Encroachments. Encroachments means a structure that crosses over a property boundaries.
In the Province of Alberta, it is the seller's responsibility to provide the purchaser(s) a current Real Property Report. Over time the original Real Property Report may become invalid because of extensive property modifications. In these scenarios, the seller may become obligated to get a new Real Property Report to complete their transaction.
For those who purchase a condominium, a Real Property Report is not usually required, unless it is a bare land condominium.
A Compliance Certificate is a document issued by the municipality stating whether or not the structures shown on the Real Property Report comply with the current development regulations. If the structures are not compliant or do not have the necessary building/development permits, the requirements will be outlined by the municipality.
If a building or structure is "non-conforming", these structures may be "grandfathered" and the municipality will allow it to stay as it is.
If a structure is non-compliant (i.e if there are structures on the property do not follow the municipality's rules and are not grandfathered), the seller must alter the structures so the buyer can receive a Compliance Certificate.
An alternative to an RPR is a product called Title Insurance. This is essentially an insurance policy that protects the buyer if it turns out there are issues with the property. You should discuss this with your realtor whether the buyer will accept it in lieu of an RPR prior to signing the purchase/sale contract.