A buyer is purchasing an Alberta property where the RPR shows a garage encroaching 6 inches over the property line onto the neighbour's land. What are the options to resolve this issue before completion?
Correct Answer
C) Options include an encroachment agreement with the neighbour, a municipal relaxation, title insurance, or a price adjustment
When an RPR reveals an encroachment in Alberta, several resolution options exist: the seller can obtain an encroachment agreement (registered caveat) with the neighbour, apply to the municipality for a development permit relaxation, the buyer can obtain title insurance to cover the risk, or the parties can negotiate a price adjustment. The appropriate solution depends on the severity of the encroachment.
Why This Is the Correct Answer
Alberta real estate practice recognizes several standard remedies for encroachments discovered through RPR review. These include encroachment agreements registered as caveats on both titles, municipal development permit relaxations under the Municipal Government Act, title insurance policies covering encroachment risk, and negotiated price adjustments between buyer and seller.
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