But my Lender said I Don't Need a Survey When Purchasing Real Estate.
One crucial step often overlooked when purchasing real property is obtaining a survey. A property survey can save you time, money, and potential legal disputes by verifying property boundaries, identifying encroachments and easements, confirming legal compliance, uncovering unknown issues, and protecting your investment.
One of the primary reasons to obtain a property survey is to confirm the exact boundaries of the land you're purchasing. A survey will show the location of property lines, which can help you avoid disputes with neighbors and ensure you're getting what you paid for. This information is necessary when planning future improvements, such as fencing, landscaping, or adding structures like a shed or pool to the property.
A property survey may reveal previously unknown issues, such as a neighboring property encroachment, a disputed property line, or undisclosed easements. Discovering these problems before closing allows you to address them with the seller, negotiate a resolution, adjust the purchase price accordingly, or perhaps cancel a deal.
A property survey will also show whether existing structures, such as buildings, pools, or decks, comply with local zoning regulations and building codes. Non-compliant structures can result in fines or legal disputes and may even require costly modifications to legalize or remove. By obtaining a survey before purchasing, you can avoid these issues and ensure your property is in good standing with local authorities.
Your title insurance company will not be able to insure you (or your lender) without an accurate survey. A property survey helps to verify the accuracy of the legal description in the deed and title documents. Inaccurate legal descriptions can lead to disputes over property boundaries or ownership rights, which can result in a title claim. A title insurance company relies on the property survey to ensure the accuracy of the legal description and minimize the risk of future claims.
All reputable title insurance companies will require a survey before insuring the Legal Description of what's being bought. Some lenders don't require a new or updated survey, and that has many buyers asking why their attorney wants them to spend the money. A title insurance company will still insure the lender's interest in the property, but that doesn't mean the buyer doesn't need a survey. Without an accurate and up-to-date survey (certified to the buyer), a title insurance company cannot adequately insure the buyer. That could leave a buyer liable in a dispute over a boundary, an easement, or an improvement to the property.
A property survey is invaluable when planning future improvements, such as adding a pool, garage, or extension to your home. It will help you understand your property's exact dimensions and restrictions, allowing you to design and position new structures in compliance with local regulations and without encroaching on neighboring properties. Always consult an experienced real estate attorney like Pete Weinman and a professional surveyor to protect your interests throughout the property buying process.
