Who Orders and Reviews a Property Survey in Real Estate Transactions

The property survey is a critical step in most real estate transactions, confirming boundaries, easements, and potential encroachments. Understanding who orders the survey and who reviews it helps ensure a smooth closing and clear title. This overview explains typical roles, timing, and best practices for buyers, sellers, lenders, and title professionals in the United States.

Who Typically Orders The Property Survey

The party responsible for ordering the survey can vary by transaction, region, and financing requirements. In most residential deals, the ordering party is usually the buyer, often facilitated by the title company or lender. In some cases, the seller may arrange a survey to clarify title issues before listing, or the lender may require a survey order as part of the loan process.

• Buyer: Commonly initiates the survey to verify property lines before purchase and to address any title concerns.
• Title Company: Frequently orders the survey on behalf of the parties to support clear title and provide a cohesive closing package.
• Lender: May require a survey and can request a specific type, such as ALTA/ACSM, to protect the loan.
• Seller: May order a survey to resolve boundary questions prior to listing or to expedite closing.

What Type Of Survey Is Typically Used

Surveys come in several forms, with ALTA/ACSM surveys often used for funded transactions and more basic boundary surveys for smaller deals. The selected type depends on financing requirements, property complexity, and local practices.

• Boundary Survey: Establishes property corners, lines, and setbacks; useful for basic ownership checks.
• ALTA/ACSM Survey: A comprehensive survey used by lenders that includes improvements, easements, and encroachments; provides detailed mapping for insured title.
• Mortgage Survey: A stripped-down version focusing on improvements and encroachments, typically acceptable in some lending scenarios.

Who Reviews The Survey And Why It Matters

Reviewing the survey is essential to identify issues that could affect ownership, use, or financing. The review is usually performed by the buyer’s attorney or a qualified real estate professional, often with input from the lender and title company.

• Buyer/Buyer’s Attorney: Reviews for zoning compliance, easements, encroachments, and boundary accuracy that could impact use or value.
• Lender: Assesses risk based on encumbrances, setbacks, and any issues that could affect collateral value.
• Title Company: Checks for title defects revealed by the survey and ensures title policy coverage aligns with the survey findings.

Key Elements To Look For On A Property Survey

A thorough review focuses on specific items that could influence closing and future property use. Buyers should track issues and seek remedies before proceeding.

• Boundaries And Measurements: Confirm corners match recorded plat and deed descriptions; note any discrepancies.
• Encroachments: Structures or fences crossing property lines, neighboring improvements on the lot, or shared boundaries.
• Easements And Access Rights: Utility, drainage, or access rights that may limit use or future improvements.
• setbacks And Zoning Compliance: Ensure building lines comply with setback requirements and local zoning rules.
• Recorded Interests: Liens, mortgages, or restrictions that appear on the title and relate to the surveyed property.

Timing And Process In A Typical Transaction

The survey process is usually coordinated early enough to protect a timely closing while allowing for any necessary corrections. The sequence generally follows these steps:

1. Order placement by buyer or title company, often after the purchase agreement is signed.
2. Survey conducted by a licensed surveyor, with a formal survey plat or map produced.
3. Delivery of the survey report to the title company and buyers for review.
4. Resolution of any issues through amendments, improvements, or negotiations with the seller.
5. Inclusion of survey corrections in the closing package and issuance of the title policy.

Costs And Practical Considerations

Survey costs vary by property size, location, and survey type. The buyer often bears the cost, but practice varies by market and negotiation. Lenders may require specific survey standards, which can influence price and turnaround time.

• Typical Costs: Range widely; boundary surveys are generally cheaper than ALTA/ACSM surveys.
• Turnaround Time: Plans and complexity affect how quickly a survey is completed; expedited options may be available.
• Impact On Closing: Unresolved survey findings can delay or derail closing if not addressed.

What Happens If Issues Are Found

When a survey reveals issues, several remedies are possible. Effective communication among the buyer, seller, lender, and title company is crucial to decide the best path forward.

• Boundary Disputes: Gentle corrections or negotiations with neighbors to resolve encroachments or alignments.
• Easement Clarifications: Documentation or negotiations to confirm legitimate access or modify usage.
• Title Policy Adjustments: Endorsements or exceptions added to the title insurance to reflect survey findings.
• Closing Delays: If issues cannot be resolved promptly, parties may renegotiate terms or extend the closing date.

Best Practices For Buyers And Sellers

Adopting proactive steps helps minimize surprises and speeds up the closing process.

• Start Early: Initiate the survey early in the due diligence period to leave time for fixes.
• Choose A Reputable Surveyor: Verify licensure, credentials, and recent work on similar properties.
• Coordinate With All Parties: Maintain open lines of communication among buyer, seller, lender, and title company.
• Review The Survey Thoroughly: Compare with the deed, plat, and any HOA documents for consistency.

Final Thoughts For The Real Estate Process

Understanding who orders and who reviews a property survey helps prevent title defects and unanticipated risks at closing. Clear alignment among buyers, sellers, lenders, and title professionals ensures that the survey supports a smooth transfer of ownership and a secure, insurable title.