A Certificate of Compliance may be required by the purchaser of a property during a real estate transaction.
A Certificate of Compliance is a confirmation from the Municipal District of Willow Creek that a development permit has been issued and the locations of structures on a property comply with the Land Use Bylaw. This is confirmed on a Real Property Report (RPR) prepared by an Alberta land surveyor. It does not regulate or enforce any building code requirements or serve as a confirmation of permit history on a property.
A Real Property Report is a legal document that clearly illustrates the location of all significant visible improvements relative to all property boundary lines. Improvements include, but not limited to; buildings, decks, sheds, barns, corrals, retaining walls, fences, dugouts and reservoirs.
A Certificate of Compliance is usually required by lending agencies or lawyers in the sale of a property and/or mortgage approval to protect their clients' investments. Standard real estate purchase contracts often require the vendor to obtain a compliance certificate. A Certificate of Compliance is not a legislative requirement, but rather a service provided by M.D. of Willow Creek. The M.D. does not require you to get a compliance certificate and will not intervene in private transactions.
Sales, leases, and other agreements often require a Certificate of Compliance for the protection of interested parties. This is a private condition between the parties and may not always be required.
Timeline
In most cases when a property is sold a buyer will require a Certificate of Compliance.
In this case you will be required to obtain a Real Property Report from an Alberta Land Surveyor. Completion of a Real Property Report may take 4-6 weeks. Once a report is obtained it is provided to the M.D. Planning and Development Department for review. This process may take 2-4 weeks or more as a thorough review of the property is conducted to review whether the buildings and structures have been constructed in accordance with the land use bylaw, that the builder obtained safety code permits and if the uses on the property are consistent with the land use bylaw.
What types of issues have we seen related to property compliance certificates?
Over the years we have noted the following issues related to real property reports such as:
- Structures built within road allowance right of way
- Structures built across property lines
- Structures built on utility and pipeline right of ways
- Structures built without benefit of development permits
- Properties being used for uses not permitted in the land use district
When non-compliance issues are noted in the review of a property the M.D. will work collaboratively with the property owner to bring the property into compliance so that the purchaser and the purchaser’s lender will have the assurance that the property is fully compliant with the land use bylaw.
However, if a property is not in compliance with the land use bylaw delays may occur as permits are applied for and reviewed, structures moved or removed, and other issues addressed.
How can you make the process move quicker?
Property owners can assist in making the compliance certificate process smoother by doing the following:
- Contact the M.D. before constructing a structure on your property to determine if a development permit and/or a safety code permit is required
- Ensure that all structures meet minimum setback requirements on development permits
- Ensure that any structures you construct are actually located on your property and are not located across property boundaries or on easements or right of ways.
- Plan Ahead!!! If you are planning on selling a property in the future contact an Alberta Land Surveyor to undertake a real property report and contact the M.D. well in advance of the planned listing of your property. The M.D. undertakes a thorough review of compliance related matters to ensure that future property owners are not purchasing a property that is out of compliance with the land use bylaw.
- If the property does not comply with the land use bylaw, the landowner/applicant will be notified and given the opportunity to resolve the issues.
- There may be situations where the applicant can apply for a development permit requesting a variance of minimum setback requirements, to allow the structure to remain as is. There are additional fees for a variance request. Be advised, there is no guarantee that a variance will be granted from the development authority.
- An applicant may be required to remove or relocate structures or buildings in order to meet minimum setback requirements. If this is the case, a Statutory of Declaration is required to affirm any changes that have been made to the property after the survey has been completed. Or, a revised real property report, by the original surveyor, may be submitted
To review Certificate of Compliance Policy 610-05