As a Buyer you are not required to obtain a Real Property
Report to buy real estate in Alberta if you are paying for the property
using only your own existing resources and without any form of third
party financing. (Please note that any debt secured by an interest in
land creates a mortgage. This is true whether the debt is repaid in
a fixed installment manner or if it is revolving debt, such as a line
of credit. If a lender is registered against your title as a condition
of advancing a loan or establishing a line of credit, then that lender,
by definition, has a mortgage against that property.)
However, most lenders will require you as a Borrower to provide a Real
Property Report and evidence of the property’s compliance with
the municipal land use bylaw to the lender as a condition of financing.
Alternatively, if a Real Property Report is not available most of these
lenders will accept a policy of title insurance in lieu of a Real Property
Report, but such a relaxation is not guaranteed and should be confirmed
by the Buyer.
As a Buyer, you are only entitled to have a Real Property Report provided
to you by the Seller, if the Seller is obligated by contract to give
you one. Accordingly, if you intend to obtain financing to assist in
the purchase of real estate, you should make sure that you will be able
to satisfy all of the lender’s requirements for financing, including
a Real Property Report and evidence of the property’s compliance
with the municipal land use bylaw if it is required.
Condominium Units that are made up of the right to occupy an identified
space within a building, but do not create an exclusive right to land,
are an exception to this because the legal title to the Unit is identified
on the registered Condominium Plan, and there is no land exclusively
associated with the Unit to survey. A Condominium Unit that does create
an exclusive right to land is known as a Bare-land Condominium, and
is subject to the same concerns previously addressed concerning Real
Property Reports.
< Back
The general opinions expressed herein are for information purposes only
and are not to be relied on. Individuals are encouraged to seek legal
advice as it relates to their specific fact scenario to ensure they
are fully aware of their legal rights and obligations.