head Calvada Surveying, Inc: October 2016

Wednesday, 5 October 2016

The Importance and Standards for ALTA Surveying Services

Most of the lenders need a little research before financing the acquisition of any commercial property. In such cases, the survey requirements are not as common as they are for other requirements. In a property which is not obtained with enough research may disclose some issues later. There are many surveys that should be considered for the purpose but boundary surveys and ALTA (American Land Title Association) surveys are the most preferred ones.

ALTA surveys and boundary surveys are performed with some minimum standards adopted jointly by the ALTA (American Land Title Association) and ACSM (American Congress on Surveying and Mapping). The surveyor has to depend on these standards for preparing a survey that correlates with the rights and needs of the property purchaser, financer and title insurer.

ALTA surveys are costlier than any type of the survey but they are more intensive and offer comprehensive and detailed information. It provides information about property boundaries, easements, and improvements like fences, trails, roads, and other features which may affect the future ownership of the property. These features may need further investigation as there may be the potential for errors to result in the possibility of adverse rights and infringement. An ALTA survey also shows modes of access, zoning classification, and flood zone classification of the property. Common surveys like boundary surveys often lack the level of detail that is required for the evaluation of property which is necessary for commercial real estate purchasers and lenders.

Lenders and real estate purchasers use ALTA surveys to ensure that their security interests and investments are protected from adverse claims that cannot be discovered by a common survey or research. The information generated through ALTA surveys assist the lender and the purchaser with the information about potential risks and benefits that come with the ownership of the property.

In the process, the lender may want the surveyor to draft a legal description of the property so that the drafted legal description can be compared to the legal description in the title commitment. If they do not match then there is a problem that needs to be addressed.