- What is a Real
Property Report?
A Real Property Report
is an accurate representation of the improvements on your property. A Real Property
Report is the one and only way to know the true legal boundaries
of any property.
To view an actual RPR click
here (Requires Adobe
Acrobat - PDF 229KB)
- What is title
insurance?
Title insurance simply
insures the owner against any conflicts in the Real Property Report. For example:
if your neighbour had a Real Property Report done for his property and discovered
that your fence was in fact on his property the Insurance would
cover the costs of rectifying the issue.
- What are you
selling?
A Real Property Report
truly and accurately depicts exactly where all improvements are located on the
property. It identifies any encroachments on other properties and/or conflicts
with local bylaws. A Real Property Report with a compliance stamp is a "picture
in time". Title insurance avoids this "taking a picture in time"
and problems/issues are not identified.
- What are you
buying?
Without a clear picture
and measurement of the actual dimensions of a parcel of land or citing of improvements
it is impossible to know exactly what the vendor is selling or what the purchaser
is buying. Title insurance leave any problems to be inherited and fixed at a later
date.
- How are problems
solved before a sale?
If conflicts are revealed
on the Real Property Report it is usually the responsibility of the vendor to
resolve those conflicts. Often a simple agreement with the municipality and/or
holder of the encroachment is all that is necessary.
- What happens
when problems are masked by title insurance?
If you have purchased a
property covered by title insurance instead of a Real Property Report any conflicts
are now yours to solve. You could end up in a situation of not owning what you
thought you did and having no choice but to settle for what you really own.
Title insurance is not
unlimited coverage. If you choose to go this route make sure you read your contract
thoroughly and know what is and isn’t covered – additional insurance may be needed.
- Is the vendor
or Realtor off the hook?
No party to any real estate
transaction is off the hook if they deliberately covered up any deficiency that
they had knowledge of. The title insurance company and/or the new legal owner
can decide to initiate legal action if they feel that any party failed to make
full disclosure.
A Real Property
Report is part of full disclosure!
- What does it
cost?
A Real Property Report
will initially cost more than title insurance. It is better protection and there
is a larger amount of work involved in preparing it. Title insurance, while initially
cheaper, usually only lasts as long as the term of your mortgage, meaning you
will have to pay to renew it several times over the amortization period – eventually
costing you much more.
- It's about peace
of mind!
The purchase of property
is a major expense. Knowing what a vendor is selling and what a purchaser is buying
brings peace of mind - no surprises - no hidden costs - no fine print - just peace
of mind. It’s your choice.
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