Land mapping and documentation is often misunderstood, and some questions are common to title and real estate clients about the different types of property mapping and their roles in real estate transactions. Specifically, GIS, Mortgage Location|SLR, and Boundary Surveys – what are the differences?
What is GIS?
A geographic information system (GIS) is a system that creates, manages, analyzes, and maps all types of data. While states are making strides in developing their geospatial data capabilities, much work remains for a national mechanism for sharing common sets of mapping data.
The GIS is an excellent starting point for any real estate transaction. And as professional surveyors, we use it often. But just that – a starting point. There is always more work, investigation, and professional interpretation to be done. If solely relying on the GIS, some common pitfalls that the transaction will be exposed to include:
- Distorted images which may not accurately reflect where property improvements are located in relation to boundary lines.
- Dated images leading to uncertainty that all current property improvements are accounted for. Have new improvements been added
- Low accuracy +/- 10-20 feet (or more) meaning a large tolerance for error on location of structures
- And ultimately, there is no party to hold liable in the case of a real estate transaction as every county includes disclaimers that they have not verified the accuracy of the data
To safeguard real estate transactions, it is important to seek further levels of assurance than the GIS can provide on its own. We use GIS at McSteen as a great research tool and it is a valuable resource, but it does not offer a complete picture or a high level of accuracy, especially when it comes to safeguarding real estate.
What is a Mortgage Location |SLR?
When it comes to obtaining a mortgage and title insurance to purchase real estate, a Mortgage Location in Ohio or a Surveyor’s Location Report (SLR) in Indiana is typically required by Underwriting. While there are slight differences among states, in general, this type of report shows the property lines per the legal description and any recorded easements, right of ways, etc., that are provided by the title company. The surveyor is made aware of these and also locates any improvements on the lot such as the house or commercial building, sheds, fences, driveways, and pools. The benefits of a Mortgage Location, SLR, or equivalent are:
- Very affordable
- Quick Turnaround
- Accuracy +/- ft
- Highlights potential title issues
- Picture and information are “real time”
There are, however, limitations as well. This type of report does NOT show boundary lines observed or calculated by the licensed surveyor but rather what is provided by the client in the legal description. As such, these reports are not intended for a property owner looking to put up a fence, install a pool, or build a shed.
Rather, it is recommended and generally required that a boundary survey be completed before any building or improvement on a lot to ensure that construction does not cross onto a neighboring property or extend into building setbacks or easements.
What is a Boundary Survey?
A boundary survey is done by a crew of surveyors both in the field and the office, property corners are physically marked at the site, and lines are determined by surveyor calculation, not just by provided legal description as with the mortgage location or SLR. There is little to no margin of error on a boundary survey.
Therefore, boundary surveys are beneficial in ensuring that you know exactly where your property lines are and where the building setback lines are so that you do not encroach on your neighbor’s property or violate a building code which could be costly.
It is also the only survey product on which a new legal description can be written. If during a title search it is determined that the land transferring needs to be re-described or a seller is considering a lot split to sell a portion of their land, a boundary survey is a must.
What it is NOT designed to do is highlight title issues. A boundary survey is all about property lines to a high degree of accuracy, where a mortgage location or SLR was developed to seek out, highlight, and discover title concerns such as property access and improvement locations.
What type of survey do I need?
When deciding whether to order a survey and determining which is necessary, it is important to think about what you plan on doing on the property. Are you planning on building a fence on one side? Maybe a new deck? If the work you are planning to do requires a permit, a boundary survey is the way to go. In addition to being necessary for permitting, a boundary survey also can help if you run into issues with your neighbors. Knowing exactly where your property lines are, and knowing your rights to build on your property, can extinguish any fires before they start.
If, on the other hand, you are planning to purchase property, and need to obtain a mortgage and title insurance, a mortgage location or SLR is the right product, and your title company will coordinate that process for you. A mortgage location will help to identify any potential issues before you move forward with the purchase as well as give the lender peace of mind that their interest in the land is secure.
Splitting a parcel to sell a portion? You just might need both – a boundary survey to redescribe the newly formed parcels and a mortgage location or SLR to follow based on the new legal descriptions to highlight property title concerns.
Interested in learning more? We offer two courses that are taught by our Survey Professionals, including one on this topic. It is designed for anyone interested in learning more about the different types of land surveys, their benefits, and their limitations. Learn more about our course offerings or email us at info@mcsteen.com.
