Who Pays for the Real Property Report: Buyer or Seller in Alberta?

If you are buying or selling a home in Alberta, one of the early questions is who arranges and pays for the Real Property Report, usually called the RPR. The answer is found mainly in your purchase contract, not in a statute.

This article explains what standard contracts usually say, what the report involves and what to do if the other side pushes back. Because contract wording and local practice vary, the details are worth confirming with a lawyer before you sign.

This article covers the law of Alberta.

What the RPR is and who prepares it

An RPR is a service provided by an Alberta Land Surveyor, and only a person registered under the Land Surveyors Act may practise surveying in Alberta. The surveyor prepares the report but does not decide whether it complies with municipal bylaws. The owner takes the RPR to the municipality, in person, to obtain a compliance stamp.

So there are usually two costs to think about: the surveyor's work, and any municipal fee for the stamp. Fees and turnaround times vary between municipalities, and a surveyor or the municipality can tell you the current amounts.

The word surveyor has a set meaning in Alberta law. The Surveys Act defines a surveyor as an Alberta land surveyor under the Land Surveyors Act. In practice, that means the person who prepares your RPR must hold the right registration, and it is reasonable to ask a surveyor to confirm that before you hire them. The steps are also split between two parties: the surveyor prepares the report, while the municipality reviews it and gives the stamp.

What the contract usually says

Most standard residential purchase contracts in Alberta require the seller to give the buyer a current RPR with a municipal stamp of compliance. It is a contractual term rather than a statutory requirement.

That means the starting point is usually the seller providing it. Still, the exact clause wording, and who bears the cost in a particular deal, depends on the contract you sign and what you negotiate. Read the RPR clause closely, and ask your lawyer or real estate representative to explain it before you sign.

It helps to separate three different things. The contract sets what the seller promises to deliver. Your lender and lawyer set what they need before they will act. The municipality decides whether to give the stamp. Names, fees, turnaround times and whether a variance or relaxation is available can differ from one municipality to the next, so the municipality's own office is the best place to learn how it handles stamps.

Why buyers care even when the seller supplies it

• Buyers' lenders and lawyers usually require a current RPR.
• The buyer's lawyer needs reasonable time to review it before funds are released.
• Ideally buyers see the RPR before making an offer.
• A compliance stamp confirms only that the improvements shown meet the municipality's requirements. It does not address use under the Land Use Bylaw, easements, covenants or other requirements.

Put simply, a stamped RPR is a useful piece of information, not a full clean bill of health. Because the stamp covers only the improvements shown on the report, a buyer who has questions about how the home will be used, or about easements and covenants, should raise them with a lawyer rather than assuming the stamp answers them.

Using an older report

A seller may already have an RPR. Where nothing on the property has changed since it was prepared, the seller may sign a Statutory Declaration or Affidavit stating the existing RPR is accurate and the property is in the same state as at the date of the original RPR.

If the property has changed, a statutory declaration is not enough and only an updated RPR with a compliance stamp can confirm municipal compliance. A stamp relates to the RPR it was issued on, so the old one cannot simply be reused.

If the report turns up a non-compliant item, the seller is typically expected to resolve it before the stamp is given.

For example, if the review finds an encroachment or a setback problem, the seller may need to seek a variance or relaxation from the municipality before the stamp is given. How that works differs between municipalities, so it helps to start early.

If the seller refuses: what to do next

Whether a deal can close without an RPR, or what follows if a seller will not provide one, depends on the contract and on your lender and lawyer. It should not be assumed either way, so get advice before you waive any condition.

• Read the RPR clause in the offer before you sign, and ask for changes in writing.
• Ask early whether the seller has an existing RPR and whether anything has changed since.
• Tell your lender and lawyer if the RPR is missing or old.
• If you are the seller, contact a surveyor and your municipality early so you are not waiting at closing.
• Do not waive conditions about the RPR without legal advice.

If you are a buyer, the simplest approach is to ask for the RPR early, give your lawyer reasonable time to review it, and raise any gaps while you can still negotiate. If you are a seller, a good first step is to find any existing RPR and think about whether anything on the property has changed since it was prepared.

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