When it comes to buying and selling property, there are many things that can go wrong. Real Property Reports are an essential part of the home sale process. However, RPR’s that are deemed non-compliant during the closing of a home sale may result in certain financial holdbacks

In this article, we’ll discuss what financial holdbacks are and how you can avoid them.

What are Financial Holdbacks?

A financial holdback, in the instance of selling your home, is a sum of money held back from the proceeds of the sale. This sum acts like an insurance policy for the new home buyers, protecting them from losses incurred as a result of any non-compliance regarding your Real Property Report.

Financial holdbacks are typically determined by the lawyers involved in the sale and can range between $1500 and $25,000 depending on what type of structure is causing non-compliance with your RPR.

What Causes Non-Compliance?

During the compliance review with your municipality, any permanent structure on the property found not meeting the current land use bylaws will be rejected for compliance. Common examples include: decks that are over height, eaves projecting too far into a side setback and missing privacy fences from a shared property.

If your RPR gets flagged, the municipality will issue a rejection letter outlining the cause of infraction.

Once the process of relaxing the bylaw has been completed and your RPR has been stamped with Compliance, you may present the RPR to your lawyer in order to have the held back funds released.

To find out more about Rejection Letters and RPRs click here:


When does a Financial Holdback get released?

Most financial holdbacks will get released when the cause for rejection or encroachment has been rectified. This can be done by completing a relaxation application or encroachment agreement on the structure in question or correcting the structure to meet the proper guidelines.

Once a relaxation application or encroachment agreement have been processed or the RPR has been reviewed again with the structural changes and gained compliance, you can then present the final RPR to your lawyer and begin the process of having your funds released.

It is always best to have a clear line of communication with the lawyers assisting you with the sale of your home.

Financial Holdbacks, Real Property Report, Compliance.


The RPR compliance process can come with many hiccups and frustrations which may result in financial holdbacks until the problem is resolved. Stay educated with Arc Surveys to ensure that your RPR gets on the fast track to compliance.

 ARC Surveys

Have any questions or concerns about your RPR gaining compliance? Give us a call (403 277 1272) or send us an email. We’re always happy to help.