When it comes to real estate transactions, title companies play an important role in the whole process. They ensure that the property being sold or bought has a clear title and no unrecorded liens. To verify if the property is free from any liabilities, title companies require some form of land survey. With the help of land surveyors, title companies are able to verify the ownership and identify potential issues that could impact property value.
In this article, we’ll dive into the land surveys required by title companies before closing the deal. Continue reading to learn more:
Boundary Survey
Purchasing a property is a huge investment that you want to protect. Getting title insurance is the first step to protecting you from potential financial losses. Many people think of title insurance as a burden and unnecessary expense. But you should not underestimate the importance of title insurance. It serves as a safety net that protects your rights as a property owner.
Title companies typically issue title insurance policies, which protect both the homeowner and the lender. Before providing you with a policy, they will require you to work with a surveyor for a boundary survey.
A boundary survey establishes the exact property lines of the land. This report also includes the location of trees, fences, rights-of-way, and any possible easements. Once the survey is complete, the title company will identify boundary issues and work with the surveyor to resolve them. After addressing the boundary conflicts, they will determine the insurability of the title and offer accurate insurance coverage.
ALTA Survey
Stands for American Land Title Association, ALTA is an organization that sets standards for surveys and title insurance policies. Licensed surveyors conduct ALTA surveys that go beyond the typical boundary surveys. Instead, this comprehensive survey provides a detailed description of easements, improvements, and other features of the property. ALTA surveys are typically required for commercial properties or high-value residential lots. Most title companies require ALTA surveys for the following reasons:
- Identify difficult-to-locate easements
- Mitigate potential risks
- Minimize potential claims
- Ensure the accuracy of the property’s title
- Satisfy the lender or title insurer’s requirements
- Locate record and non-record issues affecting the property
Mortgage Location Survey
A title company’s job is to research the property’s history and ensure the accuracy of its legal description. The property’s legal description accurately identifies the property’s location and improvements. A mortgage location survey helps ensure the accuracy and reliability of the legal description.
Like boundary and ALTA surveys, a mortgage location survey is commissioned by a title company. This survey confirms to the title company that what is described in the property’s deed is accurate and exists in reality. It gives them a good picture of the property’s boundaries and features.
In addition, mortgage location surveys help title companies assess the property’s value. If you are a homebuyer, this gives you peace of mind knowing that you’re paying a fair price for the property.
Situations That Require Land Surveys
Aside from real estate transactions, title companies may require surveys for a variety of reasons. One example is during refinancing. Not all title companies require surveys during refinancing, but some lenders may request them before approving the loan. If there have been any significant property changes or discrepancies in the documents, the lender may ask for a land survey report. The survey can reveal any potential issues and help the title company or lender assess the risk.
Another example is property developments. It’s highly recommended to conduct a land survey before starting any development project. A professional surveyor can obtain accurate property measurements, resolve boundary disputes, and comply with local zoning laws. It can be beneficial to have one done to avoid potential boundary problems that could appear in the future.
Key Takeaway
Whether you’re planning to buy or sell a property, it is essential to work with a reputable surveyor. At Pittsburgh Land Surveyors, we know how to perform different kinds of surveys required by title companies.
Our comprehensive surveying services include construction surveys, as-built surveys, flood elevation certification surveys, and more. Having been in business for several years, we have gained a reputation for being an expert in land surveying solutions. You can put to work the expertise of our experienced surveyors. Contact us today to schedule an appointment with our team!
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