With the improved transit between northern Alberta and the Okanagan, many Albertans are considering selling their real estate in Alberta and moving to the Okanagan for a warmer lifestyle.  Why not take advantage of the northern Alberta economic boom and enjoy the Okanagan lifestyle all at once?  My family, for one took, this step 3 years ago and my husband continues working up north while I work in Kelowna.

One issue that comes up for re-locatees, and a major difference between real estate in B.C. and Alberta, is the requirement to provide Real Property Reports (“RPR”).  In B.C. a similar document is referred to as a survey certificate.

In Alberta, the Alberta Real Estate Association’s current Residential Real Estate Purchase Contract requires the Seller to provide an RPR that “reflects the current state of improvements on the property”.  If decks, fences, garages etc. have been added, deleted, or changed since the existing RPR was prepared, then the Seller will need to have a current RPR prepared as per the terms of the contract by a surveyor.

Once a new or updated RPR is obtained, it must be sent to the city or municipality for “evidence of city compliance”. If the improvements (buildings, fences, decks, etc.) on the property do not comply with the municipality’s set-back rules, or if the improvement was not built with a development permit in the first place (if required), the City will advise that a development permit is required at a cost.

If any improvement encroaches onto City land, then an Encroachment Agreement is required.  For these reasons, one is well advised to obtain the proper development permit prior to any construction work being done.

The Alberta contract gives the Buyer a heavy hammer if an RPR is not provided by the Seller at all – the Buyer can demand that they be provided possession on the Closing Date without paying the full cash to close until the Seller provides the RPR.  This is often because the Buyer is required to provide an RPR to their lender for financing the purchase.

Meanwhile, in B.C., the British Columbia Real Estate Association Contract of Purchase and Sale does not require a survey to be provided by the Seller.  The Property Disclosure Statement that is often provided by the Seller to the Buyer will state if a survey certificate is available – however, even if the Seller states that a survey is available, this does not mean the Seller is required to provide one or, that the survey has to show compliance with any zoning or building requirements.  What does this mean for the Buyer?  Generally, the Buyer has to purchase title insurance to satisfy their lender’s funding requirements.

For the Albertans moving to B.C. this is an unfair result as they have the expense of updating their RPR in Alberta AND have to purchase title insurance in B.C. Fortunately, the cost of title insurance on your typical residential deal is not overly onerous and ranges from about $125 – $ 500 depending on whether you purchase both owner and lender coverage as well as the value of the property.

Unfortunately, if and until B.C. catches up with Alberta in the requirement to provide an RPR, this is just part of that “welcome to B.C. tax”.  But trust me it’s still worth it.

Author: Jennette Vopicka

This information is general in nature only. You should consult a lawyer before acting on any of this information. This information should not be considered as legal advice. To learn more about your real estate needs, please contact our office at (250)448-2637 or any of our lawyers practicing in the area of estate planning at the following:

Una Gabie: una@touchstonelawgroup.com

Jennette Vopicka: jennette@touchstonelawgroup.com

Danielle (Dani) Brito: danielle@touchstonelawgroup.com