Navigating the legal requirements for purchasing or selling a property or a land parcel can be tricky. For example, many people ask if title insurance can do the job of real property reports in Calgary. This blog tells you the difference between the two documents and where you can use them.
What Is Title Insurance?
Title insurance is indemnity insurance that protects lenders and homebuyers from financial loss due to defects in a property title. An example of title insurance is a lender’s title insurance, which the borrower purchases to protect the lender. Similarly, an owner’s title insurance is paid for by the seller to protect the buyer’s equity in the property.
What Are Real Property Reports In Calgary?
A real property report is a legal document required to review whether the property follows the rules set by the municipality. It measures the property boundaries while also analyzing its other visible physical features.
Should A Buyer Accept Title Insurance Or Real Property Reports In Calgary?
Whether title insurance is sufficient or not changes from transaction to transaction. Although, in most cases, it is recommended that the buyer insists the seller provide a real property report with compliance. Following are some reasons why real property reports in Calgary are a must.
1. What you get is clear when you receive an RPR with compliance during purchase. For example, if your fence encroaches on your neighbor’s property or if the garage is too close to the property line, you will be aware of these flaws in advance.
2. If a real property report discovers problems similar to the ones mentioned above, it usually becomes the seller’s responsibility to fix them. Again, the purchase contract usually mentions this. You can check your contract to learn whose responsibility getting the RPR is.
3. If you fail to address these problems and purchase the property, you may have to bear the costs for both an RPR and these improvements in the future. At this point, you can go to a title insurer. However, the title insurance policy may or may not cover the buyer’s loss; overall, it is just an added hassle.
4. Sometimes, there are deficiencies or flaws, leading to going for title insurance instead of an RPR. The buyer may not receive coverage under the title insurance policy. The buyer may not receive coverage under the title insurance policy. Here, the buyer and the title insurer can take legal action against the seller if there is evidence that the seller was aware of property problems. Title insurance can cover some known defects.
5. Now, let’s go a little bit into the future. When you, the new property buyer, finally decide to sell it, you will generate real property reports in Calgary to make the sale without hassle. This way, you will need to prepare a real property report with compliance, or pay for the new buyer’s title insurance.
Real Property Reports In Calgary
A real property report not only saves you from legal implications but also helps you start the construction or purchase/sale of the property on the right foot. If you are looking to order real property reports in Calgary, reach out to CORE Geomatics. Catering to 9 cities in Western Canada, they are a reputed RPR and geomatics company with a team of professional and certified land surveyors. Discuss your real property reports requirement in Calgary with them today.