Title Insurance vs. Real Property Report (RPR): What’s the Difference?
If you’re buying or selling a home in Alberta, you’ve probably heard the terms Real Property Report (RPR) and Title Insurance come up. But you might find yourself wondering; what’s the difference, and can one replace the other?
Let’s break it down together!
What is a Real Property Report (RPR)?
A Real Property Report is a document prepared by a land surveyor that shows the property boundaries and the structures on the property.
This can include your house, garage, deck, shed, fences and other exterior features.
In Alberta, sellers are typically required under the purchase contract to provide an RPR with a municipal compliance stamp. This confirms that the municipality has reviewed the report for compliance with applicable requirements.
One thing to keep in mind is that an RPR can become outdated. If you’ve added a deck, built a garage or made other changes to your property since it was prepared, you may need to have it updated.
What is Title Insurance?
Title Insurance is a type of insurance that can protect buyers and mortgage lenders against certain issues related to the property's title.
Depending on the policy, it may cover things like title fraud, certain liens, or financial losses related to some unknown property or zoning issues.
Unlike an RPR, title insurance doesn't show you where your property boundaries are or confirm that everything on your property meets municipal requirements.
It also doesn't cover every issue. Known problems and existing non-compliance may be excluded, depending on the policy.
So, what's the difference?
Here's the easiest way to think about it:
An RPR shows you what's on your property and where it's located. Title Insurance helps protect you against certain financial losses related to your property's title.
They're two different things, and they don't offer the exact same protection.
Can you use Title Insurance instead of an RPR?
Sometimes, yes!
This can come up when a seller doesn't have an RPR, or the existing one needs to be updated and there isn't enough time before possession.
Title insurance may be offered as an alternative, depending on the purchase contract, the buyer's lender and the lawyer's advice.
For sellers, this can help avoid delays while waiting for a new survey and municipal review.
For buyers, though, it's important to understand what you're agreeing to. Title insurance doesn't give you a current picture of your property boundaries or confirm that everything meets municipal requirements.
If you want to build a fence, add a deck or make other changes down the road, you may still need an RPR.
Which one is better?
Honestly, they serve different purposes!
An RPR with municipal compliance helps you understand what's on the property and whether the municipality has confirmed compliance with applicable requirements. Title insurance offers a different type of protection against certain title-related risks.
The important thing is knowing what you're getting before you agree to anything.
If you're buying or selling a home in Alberta, don't leave this conversation until the last minute. Your real estate agent and lawyer can help you understand what's required under your contract and what your options are.
Because the last thing anyone wants is a paperwork surprise right before possession day!
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Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS® System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
