When investing in any property, you must do your due diligence and research on all aspects of the land. For many property owners, that means investing in an ALTA survey. You might be asked by a lender or title company to have one of these surveys completed, but do you know what exactly they accomplish for all parties involved in your property transaction? We’ll break down when an ALTA survey is required and why they make such a big difference.
What Are ALTA Surveys?
ALTA surveys are the highest standard of surveys in the industry, as many departments rely on the information they provide. Performing an ALTA survey means collecting a set of information on your property, like existing utilities and significant observations that give all parties a clear understanding of the land. In addition, it helps to facilitate financial transactions, secure insurance policies, and identify clear boundaries for neighboring properties.
What Do ALTA Surveys Identify?
ALTA surveys are comprehensive, making use of all elements of boundary, title, and location surveys. The information collected isn’t someting that takes a few minutes to assemble. They require detailed analysis and must adhere to national standards from both the American Land Title Association and the National Society of Professional Surveyors.
ALTA surveys will identify the following elements of your property:
- Record easements that might hinder current or future uses of the acquired property.
- Buildings, fences, and items from other neighboring properties that encroach onto your property.
- Buildings, fences, and items from the property you’re acquiring that encroach onto neighboring properties.
- Verification of vehicular access to properties via streets, roads, alleys, or highways.
- The various utilities available to the property owners.
- The availability of enhanced title insurance.
- Zoning and flood zone restrictions.
When You Should Get an ALTA Survey
ALTA surveys aren’t always required or necessary, but in most cases, they are recommended. But while you may not always be forced to get one, ALTA surveys act as a form of due diligence and are extremely important to ensuring the safety of your property. So while you may feel comfortable investing in a 30-year-old building with minimal visual concerns and located in a well-developed area, an ALTA survey may still unravel potential troubles. Additionally, when working within commercial real estate, many title companies require ALTA surveys before committing to title insurance. These are just a few examples, but plenty of other important situations essentially render an ALTA survey a necessity.
When Buying Vacant Land
In many cases, vacant properties haven’t ever been surveyed, so there’s little to no evidence of what you’re getting into. Even if it was surveyed, the survey was likely performed with technology not fitting for our time. This increases the likelihood of you missing out on critical details like encroachment or border issues.
When Finishing Up a Construction Project
While some lenders will suggest your survey be completed before the project begins, it’s just as important to have your survey completed at the end. Why? This ensures you comply with applicable zoning laws and regulations and that there weren’t any deviations from the initial design.
Commercial Transactions
As discussed, commercial real estate transactions often require using ALTA surveys for due diligence, pursuing refinancing, or finalizing the purchase. They also lower risks for future owners and provide a record against the buyer’s survey to defend the facility’s status during your time of ownership.
Looking to Get an ALTA Survey? Turn to Ludlow Engineering and Associates LLC
ALTA surveys provide detailed information and analysis of all investments. Proceeding without an ALTA survey or with one performed poorly increases uncertainty and ensures you take on unnecessary risk with your property. Start off on the right foot by completing your ALTA surveys with the specialists at Ludlow Engineering. We’ll give lenders, title companies, and property owners confidence when proceeding with property improvements or navigating policies and city or county requirements.
For more information and details on why our land survey services in Utah are right for you, contact Ludlow Engineering today with all your questions, and we’ll be happy to help.