When conducting a commercial property transaction, an American Land Title Association survey (ALTA) will likely be required by the lender or title company or suggested by your attorney. In most cases, title insurance cannot be obtained without an ALTA survey.
Far more accurate than a boundary survey, the details presented in an ALTA survey can help make more informed decisions about the property’s value and can be an invaluable tool in resolving possible legal disputes in the future.
Part of the due diligence process is to ensure that a property aligns with its legal description and offers no unfortunate surprises down the road. An ALTA survey offers a comprehensive look at a property to confirm such details as whether improvements on it are in compliance with local regulations and that the stated building footprint is accurate.
Legal Trouble in the Making
Things like encroachments, setbacks, and easements can mean legal trouble in the making if they are not revealed during the due diligence period.
If a neighboring property has fences or structures that encroach onto your property, you need to know. Also, if the property you are considering has existing improvements that encroach onto a neighbor’s, you need to know. You also need to be aware if any improvements encroach on an easement or violate local setback ordinances. Any of these issues could mean legal trouble in the future.
Easements can have a negative impact on development, so ferreting out any existing ones is critical. Learning whether or not zoning restrictions will prevent planned property development is also important.
What Can an ALTA Survey Reveal?
An ALTA survey reveals details that affect a property’s value. Things like encroachments, setbacks, easements, existing improvements, and other conditions that might impact the potential of a property for development or put up red flags that legal troubles might arise in the future will show up in an ALTA survey.
In addition to existing encroachments and easements, ALTA survey reveals:
- Burial grounds
- Water features
- Paths and roadways
- Sidewalks
- Fences and hedges
- Buildings
- Visible utilities
- Site access points (or lack thereof)
- Parking spaces
There are also optional items that can be included on an ALTA survey, including flood zone classification, wetlands, parking considerations, underground utilities, and any zoning regulations that might dictate how the land can be developed, such as height restrictions or setbacks.
How Is an ALTA Survey Conducted?
An ALTA survey is not a one-day process. Depending on the property, it can get pretty involved and may take more than two weeks to complete. A multi-step process, ALTA surveys begin with researching land records, looking at both public and private sources. The title will be researched for any lien discrepancies, encumbrances, or recording errors.
The fieldwork comes next, and is the most demanding. Boundary lines and any original survey markers must be located, which can be a time-consuming process.
Once all the data has been collected, it must be analyzed and a map or plat drafted. This is then reviewed for accuracy and may require revision before it is signed off on.
Who Is Qualified to Perform an ALTA Survey?
An ALTA survey must be performed by a professional land surveyor. Darling Geomatics has extensive experience in conducting ALTA surveys. Their maps meet a uniform set of national standards that ensure delivery of a survey containing the required information necessary to issue title insurance and/or fund a commercial real estate loan.
To obtain title insurance, to make sure your land transaction doesn’t hold any unpleasant surprises that could lead to legal trouble, and to avoid hidden roadblocks that could prevent developing the property as planned, order an ALTA survey of the property.
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