Alberta real estate licensees must use the Residential Measurement Standard (RMS) when measuring residential properties. Your real estate licensee is required to discuss the RMS with you to ensure you understand its implications and how it helps you make informed decisions about the size and suitability of available residential properties.
The RMS offers a consistent means of representing the property’s above grade space. Among other things, the RMS sets out what parts of a property can be included in its measured-area. For example, if a room has a dormer with a ceiling height of only 4 feet, is it included as floor space? What about finished basements that are entirely below grade? The RMS information benefits consumers because:
When stating a residential property’s area, your real estate representative must follow the RMS principles:
As a buyer, your real estate representative must explain the relationship between property size and price, the measured size the seller is representing, what it entails, and information about details like above grade and below grade measurements.
Property size and measurement are important factors for most buyers and your real estate professional must discuss the following with you:
Many purchase contracts contain clauses placing the onus on the buyer to verify the property size. If property size is important to you, tell your representative, and take steps to verify the size rather than relying on the seller’s representation.
If you want to verify measurements, you can ask your real estate professional to hire a property measurement company or you or your real estate representative can measure the property. You and your real estate professional should discuss whether you should take measurements before making an offer to purchase or as a condition of your offer, and who will pay the cost of the measurement company.
Throughout this process, as a buyer, keep in mind that a property’s size isn’t the only thing sellers are using to set a listing price for their home. Two homes, with the exact same measurements, are unlikely to sell at the same price. The price of a home will also depend on features, décor, state of upkeep.
As a seller, your real estate representative must explain the relationship between property size and price, the role of the RMS, what it entails, and information about details like above grade and below grade measurements.
Your real estate professional is required to discuss the following with you:
Throughout this process, as a seller, keep in mind that a property’s size isn’t the only thing buyers are concerned about. Two homes, with the exact same measurements, are unlikely to sell at the same price. The price of your home will also depend on features, décor, state of upkeep.
Are you getting ready to buy or sell a home? If you’re a buyer, have you thought about how much space you want? If you’re a seller, have you thought about how the size of your home will affect your list price?
Property size is important, and the Residential Measurement Standard (RMS) in Alberta provides a consistent way to communicate property size for both buyers and sellers. It contains nine principles that real estate professionals must follow when measuring and representing the size of residential property.
Here are the top six things buyers and sellers need to know about residential property measurement, and the Residential Measurement Standard, in Alberta.
Q A | What is the purpose of the Residential Measurement Standard (RMS)? The RMS gives consumers and industry professionals accurate and consistent property measurements, which they can use to compare properties and determine their suitability. Proper application of the RMS ensures real estate professionals provide reliable and verifiable property size and dimensions. |
Q A | How do I measure properties according to the RMS? It depends on the type of property you are measuring.
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Q A | Do I have to measure every room and closet in an attached property? No. You can use long runs. |
Q A | How do I compare attached and detached properties? To compare different types of residential properties, real estate professionals can provide an additional measurement for attached properties using the property’s exterior. Real estate professionals must base this additional measurement on reasonable assumptions about the exterior wall thickness, and can extrapolate the exterior wall thickness from the thickness of the exterior door casings and/or exterior window casings. If real estate professionals provide additional measurements based on exterior assumptions, they must make it clear it is not the RMS area for the property, and explain their assumptions. |
Q A | Do I have to communicate the RMS for every property I list? It depends on the seller’s direction. Sellers are not required to represent the size of their property; however:
If the seller wants you to communicate the size of the listing and/or the listing service/property database has a mandatory property size field, it must be the RMS. |
Q A | Do I have to measure the property myself? No. Consumers are not required to measure their property or to adhere to the RMS. However, if your real estate professional is advertising the property size to sell your home, they must measure the property themselves or hire a company to measure using the RMS. To determine whether someone is competent to measure properties in accordance with the RMS, you might ask them to detail:
In addition, you should ensure the person or service has Errors and Omissions (E&O) insurance for their measurement services. |
Q A | What about apartments on the ground floor where a portion or all of the unit are below grade? I am listing a 2-storey condominium apartment in a large building where all apartments are the same. The apartments are 2-storey apartments. The apartment I am listing is on the ground level and one of the stories in the apartment is 2-feet below grade. If I don’t include the below-grade portion of the apartment, the apartment will appear to be significantly smaller in my local board’s database than other same size apartments in the same building. How should I deal with this situation? The RMS provides an exception for properties that are entirely below grade. The outcome of this exception means that if apartments in a building were the same and were one level, there would be no discrepancy between all of the apartments in the building except that the apartments below grade would have a clarification to say that the entire property is below grade. To be consistent with this outcome, you can include the below grade portion in your local board’s RMS field, but you will need to identify size of the area that is below grade in the public comments of the listing information. You may also provide additional information that would be of value to the marketing of the property such as identifying the depth of the level below grade. This approach will also be applicable for stacked townhouses with identical units. |
Q A | Can I use the size listed in a municipal tax roll as the RMS if I disclose where I got the information? No. |
Q A | Can I use the size in a listing database from a previous listing of the property? No. Real estate professionals have an obligation to their clients to perform their due diligence. Measuring the property according to the RMS or having it measured by a qualified individual is part of that due diligence. There is no guarantee as to the accuracy of the previous listing’s measurements and the property may have been renovated or added to since it was last listed which could have changed its area measurements. However, there are some limited circumstances when re-measuring is not required. Re-measuring is not required when renewing a recently expired listing or the property is a rental unit with a property management agreement that indicates the property will be listed for rent multiple times during the agreement as vacancies arise. |
Q A | Can I use the condominium unit registered size as the RMS size? No. You must use the RMS. The Condominium Unit Registered Size was not intended to enable size comparisons between properties. The purpose of the Condominium Unit Registered Size is to calculate the condominium unit’s “unit factor.” The condominium registered size does not provide proper comparisons between units in the same condominium or between units from different condominiums, as the CURS can include items, such as garages, parking spaces, separate storage areas, below grade areas, and balconies. |
Q A | What happens if the RMS size is larger than the condominium unit registered size? If the RMS is larger than the condominium unit registered size, you should recheck your calculations. In the majority of cases, the condominium unit registered size will be larger than the RMS size because most condominium unit registered sizes include wall thickness and other areas such as such as garages, parking spaces, separate storage areas, below grade areas, and balconies. |
Q A | My seller client is upset because when they bought the property, the seller represented it as larger. What do I do? The seller may have purchased the property under a different size standard that provides a larger size value by including areas that are not included as part of the RMS. It is important for you to discuss this with the seller. When buyers purchase resale residential properties, there is often a correlation between the property size and the sale price, but the correlation is not proportional. The property’s size is only one of many factors that influence the sale price. Other factors include the property’s location, layout, style, modernization, finishing, amenities, etc. Explain to the seller that their property has not shrunk, and that all real estate professionals who are listing properties will measure according to the RMS so there is consistency, and there will not be a competitive disadvantage. If the seller’s property is attached and you believe buyers will compare it to detached properties, you can advise the seller that you will also communicate the assumed exterior size. |
Q A | Why don’t non-industry members such as home builders have to use the RMS? RECA only has jurisdiction through the Real Estate Act over real estate, mortgage brokerage, real estate appraisal, and property management professionals. |
