Introduction to Red Flags in Real Estate Transactions: This is part of a series of blog posts where we share red flags that lawyers watch out for during real estate transactions as part of the conveyancing process. Sharing these insights can empower home buyers, sellers, and real estate professionals to better serve their clients, ensuring smooth and secure property transactions.
In the world of townhouse-style condominiums, one of the most frequent questions that arise pertains to whether the property is a bare land condominium or a conventional one.
The AREA contract says that a Real Property Report and Compliance must be provided by the seller to the buyer where the condominium is a bare land condominium.
Unfortunately, many sellers and their real estate professionals often rely on incomplete information, leading to misconceptions about whether or not a Real Property Report (RPR) is required for the sale. The erroneous assumption that no RPR is needed simply because the seller doesn’t recall receiving one during their initial purchase can lead to complications.
The correct way to determine the status of a condominium, whether it’s a bare land condo or not, is by reviewing a copy of the condo plan. In the case of a bare land condominium, the plan will clearly indicate individual lot measurements for each unit. Additionally, the legend on the condo plan will reference “monuments and posts.” This combination of features on the plan is a clear indicator that the condominium falls under the category of a bare land condo, and thus, an RPR is mandatory.
If you still have doubts or lack access to the condo plan, don’t hesitate to reach out to the survey company or lawyer for assistance in making an accurate determination. By following these steps, you can ensure that you are on the right track when dealing with townhouse-style condominiums, avoiding potential issues in the conveyancing process.
