Is a Land Survey Required for Closing

A lot of documentation, inspection, and appraisal goes into buying a new home. Since buying a new home or any property is a significant moment for a person, they don’t want to leave any stone unturned.

While buying a new property, one thing that pops up constantly is Land Survey. If you plan to buy a new house or property, you might require a land survey. Since there is a lot of confusion around whether a land survey is required for closing or not, today, we will clear some doubts. So let’s dive right in!

What is a Land Survey?

A land survey is the formal measurement and mapping of a piece of land’s borders, including any buildings or other structures on it. The survey includes a complete description of the property’s physical characteristics, size, and borders. All of this information is necessary for a variety of legal and real estate objectives.

Types of Land Survey and Cost?

Land surveys can be of different types depending on the type of property you are buying. For a small property like a house, there are usually the following types of surveys:

• Boundary Survey: One of the most popular forms of land survey is a boundary survey, which is used to define and mark the property limits of a specific parcel of land. This form of survey often entails measuring and mapping the property’s borders to ensure that they are well-defined and that no encroachments or conflicts with neighboring properties exist.
• ALTA Survey: An ALTA survey is a comprehensive survey that is often needed by business lenders and insurers. This form of survey entails charting the property’s borders and detecting any possible concerns, such as easements, encroachments, or zoning violations.
• Mortgage Survey: When you buy a new home, you will require a mortgage survey. Essentially, this survey gives information regarding the property’s structure. It then checks the land and property title holders. The survey is vital because it ensures that the property you purchase complies with all local building and zoning rules before you purchase. This survey assists purchasers in ensuring that they understand what they are paying for.
• Floodplain Survey: A floodplain survey determines whether a property is located in a designated flood zone and identifies any potential risks or hazards associated with flooding. This type of survey can be important for homeowners who are required to purchase flood insurance as a condition of their mortgage.

How Much Does a Land Survey Cost?

The cost of a land survey depends on many factors, such as the location, size, timeframe, types of survey, and the surveyor’s skills. However, the average land survey cost for a small property can range between USD 300 and 600.

Who Pays for the Land Survey?

You see, no official or written rule specifies who is responsible for paying for the land survey. However, it is widely assumed that whoever wants the survey must pay for it. For example, if a buyer requests a land survey from you (a seller), they will be responsible for paying the survey bill.

Is a Land Survey Required for Closing?

Now we can discuss the million-dollar question: Is a Land Survey Required for Closing?

Well, it depends on a number of factors. Unfortunately, there is no Yes or No answer to this question. However, the bottom line is that you will definitely need a land survey if you are taking a mortgage to buy a property. This is because mortgage lenders often want an up-to-date land survey to check the borders and contents of the land they’re financing and to guarantee it’s worth the money they’re providing you.

You will also require an ALTA survey if you are buying a new commercial property.

In most cases, the cost of the survey(usually a mortgage or ALTA survey) is covered under the mortgage processing fees by the mortgage provider. So you might not have to pay any additional fees for the land survey. This is just one side of the story. There are many cases in which you might not require a land survey.

For instance, if you are not utilizing a mortgage loan to fund your purchase (in other words, you are paying cash), you can avoid the cost of a land survey. In many cases, a lender may even accept a recent or recertified survey from a prior owner in particular instances.

Another example would be if the property is in a well-established subdivision with clearly defined lot lines; a land survey may not be necessary.

In some cases, a title insurance company may be willing to provide coverage without a survey as long as they are satisfied that the property is accurately described in the legal description and that no issues could impact the property’s value.

The bottom line is that, in many cases, a land survey is important for closing. If you are buying a property on a mortgage loan, the lender might ask you to provide a land survey. While in some cases, you can close the deal without a land survey. It all comes down to the requirement of the lender.