Homebuyers often find themselves overwhelmed by the sheer number of services required for a real estate purchase. A title report, appraisal, home inspection, flood determination, credit report, tax determination, and survey are all necessary to help ensure that the property is marketable, insurable, and seen as a worthwhile investment by both the consumer and their lender.
The need for a survey can be challenging to understand, especially when looking at houses that have been standing for many years or when the local government has recently approved a new development. A survey can give the homebuyer and lender important information about the property. Read on to learn more.
Defining a Survey
This is a document that shows the boundaries of a piece of land. It can use natural features like rivers or trees or man-made features like fences or buildings. It will also show the location of any structures on the land, like houses or sheds. A surveyor creates a survey by measuring the ground and recording what they find.
A lender often requires a survey when approving a mortgage for a prospective homebuyer to confirm that the property being purchased matches the legal description of the property. This is important to the lender if they need to foreclose on the mortgage, as the legal description is included in the public record filed in the recorder’s office for the property.
To protect its investment, the title company wants to make sure that there is title insurance coverage in place. Additionally, the company wants to confirm that there are no survey-related issues that could create problems with the marketability of the property in the future.
Is a Property Survey Important to a Buyer?
The homebuyer wants to be sure that the property lines are where they are supposed to be and that there are no encroachments from the neighbor’s property. To avoid any legal issues or problems with your neighbors, it is essential to know exactly where your property boundaries are.
This is especially important if you plan to make any improvements to your property, such as building a fence or adding a swimming pool. Knowing your property boundaries will help you avoid any potential problems that could arise from infringing on your neighbor’s property or violating a zoning code.
Types of Property Surveys
Some survey types may limit the title insurance coverage your buyer receives after closing. It is important to understand the different survey products available and to help your buyers select the proper survey type for their particular situation. This will go a long way in building customer relationships that foster return and referral business.
1. Boundary Survey
A boundary survey is a process where a professional surveyor walks around the property in question, measuring the land and taking note of any features or changes. They will then review any available documents related to the property and draw an accurate representation of the property, including the location and size of boundaries, easements, structures, and any rights of access via public roads. Having a full boundary survey done can protect your interests in the event of a boundary dispute.
2. Land Title Survey
The American Land Title Association (ALTA) and the American Congress on Surveying and Mapping (ACSM) work together to create a standard for surveys of land parcels. This standard includes specifying the data that should be shown on the survey, such as boundary lines, locations of buildings and improvements, and easements.
ALTA/ACSM surveys are complex, costly, and time-consuming to complete. For this reason, most ALTA/ACSM surveys are performed on commercial rather than residential properties.
3. Location Survey
A location survey is a type of survey that provides the least amount of information but is also the least expensive. This survey type only certifies that the purchased structure is located within the outline of the parcel of land. It may also detail the position of buildings or other visible improvements on the land.
A location drawing does not show where a property’s boundaries are. This is important for a buyer who plans to remodel because they need to know where they can and cannot build.
There needs to be more than a location drawing to remove the survey exception from the owner’s title insurance policy. The purchaser may only be covered in buildings close to the property line.
Conclusion
A property survey is an essential tool that can be used to determine the boundaries of a piece of property. Property owners can avoid potential disputes with their neighbors by conducting a survey and ensuring their property is protected.
Do you need professional surveying services? Trust Will’s Service Group. We have been in the business for over ten years as land surveyors with more than five years of experience in the USA. Call today!
