We all know that paragraph 10.2 in the current, standard AREA contract says that the seller will supply the buyer with an RPR and "... evidence of municipal compliance or nonconformance...", commonly referred to as a 'compliance certificate' or 'compliance.'
But what does 'compliance' actually mean?
- The compliance indicates whether the property is accurately zoned for the existing development and whether the development is a permitted use.
- It certifies that the existing development meets or exceeds all relevant land use bylaw setback requirements.
Here's what 'compliance' DOES NOT do...
It does not authorize any encroachments onto municipal property, including road allowances or utility rights-of-way, or deal with any encroachments between private properties.
It absolutely does not certify compliance with any other provisions of the land use bylaw, other municipal bylaws, or provincial or federal laws.
And, and very importantly, the compliance says NOTHING about the requirement for, issuance of, and final approved inspection for any permits, including building, plumbing, electrical, gas, and HVAC. For any permit information/confirmation, you or your client must contact the appropriate municipal Safety Codes department.
Cheers,
Barry
I'm taking on new clients. Please consider me and
Field Law when you write your next deal.