Real Property Report (RPR) vs. Title Insurance
Posted by Haupt Client Care on Wednesday, October 27, 2021 at 9:39 AM By Haupt Client Care / October 27, 2021 Comment
Real Property Report (RPR) vs. Title Insurance | What are they? What is the difference? Should you take Title Insurance in lieu of an RPR when purchasing a home?
- A Real Property Report AKA an RPR is a legal drawing of your property done by an Alberta Land Surveyor. It will feature the boundaries and buildings/structures on it so you and your future buyers know what they are buying. Your RPR will contain the legal description as well as the municipal address of your property.
- Title Insurance is basically like a standard Insurance policy in the way it works, protecting you against unknown discoveries about your new property, they can be title related or not. It basically is insurance for a mortgage on the property that protects and covers the loss you may take in a property due to unknown discoveries of legal defects.
Why would a seller be offering Title Insurance in lieu of an RPR:
The reason why a seller may provide Title Insurance instead of an RPR because they know that their property does not comply with the cities current development bylaws. The only downside is to Title Insurance is that it doesn’t protect you, the buyer who purchases a house that has known non-compliant bylaws at the time of the sale. Title insurance will however protect you, the buyer if the homes history of buildings and developments are unknown.