The purchase of commercial real estate can be complicated and involves a significant investment. A land survey ensures the buyer is getting exactly what they are paying for.
But what type of land survey should you use? See below for the differences between a commercial mortgage location vs ALTA survey.
Commercial Mortgage Location
- Only used in the State of Ohio. While other states have similar products, there is no standardization.
- Graphically depicts property lines per the recorded deed, NOT per field observation and surveyor calculation
- Shows major improvements and encroachments with approximate accuracy of +/- 1/2 foot.
- Can be used to remove the survey exception on the lending and title policies if permissible by the affected parties.
- It is not a legal document and cannot be used in court.
- The lower state requirements leads to lower costs and faster turnaround of 5 to 7 days.
- Can show Schedule B items upon request
ALTA Survey
- National standards set by ALTA/NSPS which means that regardless of the state from which the survey is ordered and performed, the same survey requirements will be upheld.
- Offers the highest accuracy in the state of Ohio, showing boundary lines along with all monunations set or found (can also be used to write a new legal).
- Shows access to the site along with all other detailed improvements, including parking space count, utilities, etc.
- Always shows Schedule B items included in the commitment and any found during the surveyor’s research process.
- Preferred by most lenders when dealing with larger commercial properties as it provides the strongest survey for title exception and, given its high standards, lowers the risk to lenders.
- It can be used in a court of law.
- Due to the high standards and national requirements, an ALTA has a longer turnaround time, typically 20-30 business days, and costs significantly more than a commercial mortgage location
With more than 50 years of experience, McSteen can help you determine whether a commercial mortgage location vs ALTA survey best suits your commercial real estate purchase.
