Do I need a Real Property Report when selling in Lethbridge and Southern Alberta?
Yes, it is always best to sell your home with an updated RPR (Real Property Report), and letter of Compliance. There may be occasions where, however, a sale happens and there is no RPR or letter of compliance.
- It is a court-ordered sale or a foreclosure. In that case, the property is being sold as is, and the bank or the court that is forcing the sale will not guarantee an RPR or a letter of compliance. There may be one, but you will not be guaranteed to receive one as part of the contract.
- It is a new build: In the past few years, the builders here in Lethbridge have stopped offering RPRs with the purchase of a new home. Most of the time, new homes don’t have fences yet, and some new homes do not have decks either. So an RPR from a builder may only be valid for a few years. So builders have started offering title insurance instead of an RPR.
- It is an older home: If it is an older home and the owners have been there a long time, they may have never had an RPR. Still, it is a good idea to get one ordered before you list your home.
You CAN sell your home without an RPR, or without an updated RPR. However, the standard seller representation agreement used in Alberta requires sellers to provide a current RPR and letter of compliance to the buyer. You can negotiate this when a buyer comes with an offer to your home, however, buyers are going to prefer a home with an updated RPR and compliance compared to one that does not offer this. And some buyers may have lenders that require an RPR and a letter of compliance.
If you decide to sell your home without an RPR and a letter of compliance, make sure that the realtor you are working with knows how to make adjustments to the real estate contract to protect you.
Where can I get an RPR and letter of compliance?
