Posted on: 1 September 2021
An ALTA land title survey is very useful for any commercial real estate investor who is interested in purchasing a property. Having an ALTA land title survey done can save you from a lot of headaches if you plan to buy commercial real estate.
The following are six problems that an ALTA land title survey can help you to avoid.
Not being aware of encroachment or easement issues
It's important that you are aware of encroachment or easement issues before you purchase a commercial property. These issues might prevent you from being able to use a commercial property for the particular purpose you have in mind.
An ALTA land title survey should uncover any potential encroachments. ALTA surveys should also make you aware of plot recorded easements that could impact how you can use the property.
Working with partners who aren't familiar with the survey standards you've used
An ALTA land title survey is considered to be the most commonly accepted survey standard for commercial properties. Therefore, any attorneys, lenders, or title company representatives you work with will recognize data from this type of survey.
If you don't choose to have an ALTA survey done, it's possible that you'll have issues regarding the acceptability of the data you acquire and familiarity with the type of survey you use among other professionals you partner with.
Struggling with an inconsistent scope of work
Scope of work agreements are essential for drawing up a contract agreement between you and other professionals/contractors. ALTA survey results are so desirable because they conform with scope of work standards that have been in use for decades in the legal and technology industries.
Being unable to acquire title insurance
Title insurance companies in particular are going to want to see the results of an ALTA land title survey. If you don't have such a survey completed, you might struggle to acquire title insurance coverage for the property you wish to purchase.
Having to deal with exceptions on your title insurance policy
Title exceptions can cause you big problems down the road if title issues come up that your insurance won't cover because of policy exceptions. However, ALTA land title surveys can help to minimize or avoid exceptions in your title insurance policy because they help to make the removal of certain exceptions acceptable to title insurance providers.
Paying more for a separate boundary survey
During an ALTA survey, you can request that additional survey items be taken care of. This can make it so that you don't need to pay the costs for a boundary survey down the road. For more information, contact an ALTA land title survey service.Share