Why
buyers need a Land Survey when purchasing property
Surveys should be part of almost every real estate
transaction, except possibly for certain transactions involving the sale of a
condominium. The contract for sale of real estate can be drafted to give the
Buyer a limited period of time to both obtain the survey and to put the Seller
on written notice of any survey defects. The cost of the survey may be paid by
the buyer, but could be a contingency of the offer to purchase and provided by
the seller. A survey map depicts the
shape and size of the lot and all improvements located on the lot. It should
also show all setbacks, easements, and other matters observed by the surveyor.
The survey map will include a legal description of the property surveyed and
must include the surveyor’s certificate, signature and seal, and be in
compliance with the Minimum Standards for Property Surveys in Wisconsin. Once a survey is performed the title
insurance policy will include “Survey Coverage.” Survey coverage is
provided by deleting or modifying the standard survey exceptions in the title
policy.The standard “survey exceptions” in a
title policy are as follows:
- Encroachments,
overlaps, boundary disputes, and any other matters which would be disclosed by
an accurate survey and inspection of the premises.
- Rights or
claims of parties in possession not shown by the public records.
- Easements or
claims of easements not shown by the public records.
In order for
the title company to delete the standard exceptions, there must be a careful
review of the survey map. The title company should raise specific exceptions to
individual survey defects and all parties to the transaction should be put on
written notice of such defects within the time frame authorized in the
contract. It is imperative that the title company provide to the surveyor a
copy of the title commitment so that the surveyor will be aware of such matters
as easements and deed restriction setbacks. It is not the job of the surveyor
to search the public records to determine matters of public record affecting
title to the subject property.
Prior survey maps can be utilized for the current real
estate transaction in certain circumstances. In order for the title company to
rely on the prior survey map for purposes of deleting the standard exceptions
(thereby saving the buyer the cost of a new survey), the seller must provide an
Affidavit to the title company confirming that: They have
reviewed a copy of the survey map of the property.
- Since the date
of the survey map, there have been no improvements or fences erected on any
adjacent property.
- They are the
owners of the property.
- Since the date
of the survey map, there have been no additional improvements constructed on
the property and there have been no modifications or additions to the
improvements shown on the survey map.
There are limitations on the use of prior survey maps
including those meeting the above requirements, i.e. the survey map is too old,
the buyer’s lenders require a new survey, etc.
In summary, the Buyer needs a survey map of the property
being purchased in order to be protected. The Buyer’s REALTOR® or agent should
always encourage the Buyer to make sure that one is being obtained (a new
survey or a prior survey map that can be utilized for the transaction). The
title company should be carefully skilled at reviewing the survey map. The
closing process is a team effort and only skilled professionals should be
employed for the best results.
Authored by: James R. Beaty RLS PLS Broker
Horizon Land Development Services
1-262-349-1575