Legal Brief for June, 2022

Don't Throw Out That Real Property Report

One of the standard documents that a seller is required to provide to a purchaser as part of a property sale is what is known as a "real property report", which is the modern term for a survey document showing what is built on the property.  The real property report (commonly referred to in the real estate and legal worlds as an "RPR") shows all structures that have been built on the property.  This includes of course the house and garage, but it also includes ancillary structures such as decks, gazebos and fences.  The wording in the standard real estate board contract states that an RPR must "show the current improvements on the Property".  Improvements are defined as being structures of any kind built on a property.

It is important to note that the wording does not state that the Report must be a "current RPR".  It simply states that the RPR must "show the current improvements”.  If for example you have owned your house for 25 years and you are now selling it and you have the RPR that you received when you purchased the house, then as long as the Report still shows what is currently built on the property, then it can still be provided to a purchaser and it will be in compliance with the requirements of the purchase contract.

There are a variety of situations where a seller is not able to use that "old" RPR to give to a purchaser.  These include where the homeowner has added a deck to the property after having purchased it, or has enlarged an existing deck, or has built a hot tub or gazebo or a garage.  If those "new" structures do not appear on the RPR that you have, then you will need to have a survey company prepare an updated Report for you, so that you will be able to provide a Report that shows the "current" improvements on the property.

The word to the wise then is to make sure you keep all, and I mean "all", of the documents that you receive when you purchase your property.  Your lawyer will have sent you a purchase report letter, which will include all of the main documents connected with your purchase, including the real property report received from the seller.  If you happen to be a bit careless with your personal papers and you lose track of what you received or you throw them out after several years, thinking you won't ever need them in the future, you may have cost yourself the $600.00 that a new replacement RPR will cost to have prepared.