Northern Lights over Fort McMurray Alberta    
Thorne and Thorne Barristers and Solicitors  


Do I need a Real Property Report if I am buying real estate?

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.

Thorne and Thorne
Barristers & Solicitors