An ALTA Survey is essentially a boundary survey plus a detailed depiction of property improvements, easements, and anything else impacting the parcel. It adheres to a set of minimum standards established by the American Land Title Association and the National Society of Professional Surveyors and is used for a variety of reasons, from securing title insurance at the closing of a deal to being used as a design document for engineering purposes.
Typically contracted by the title company, lender, or attorneys representing involved parties for commercial property purchases, refinances, or improvements, an ALTA Survey provides confidence that results are guaranteed. The fact is that in the United States, there is no guarantee of ownership of real property and an ALTA Survey is one way you can protect your interests.
While these surveys are more expensive than the other types, they reveal much more extensive information about real property and help to protect a real property investment. ALTA Surveys can safeguard your commercial real estate investment from claims that a simple title search or more basic survey may not disclose and, ultimately, help to identify the potential benefits and downfalls of ownership.
What does an ALTA Survey Entail?
An ALTA Survey expands beyond a standard state-dictated boundary survey and requires surveyors to collect and document data from a combination of records and fieldwork that support the needs of title companies and real property insurance requirements.
- Records research – This includes the pre-survey gathering of extensive county/municipal public and private records, including the title commitment and current record description of the property to be surveyed or its parent parcel. Surveyors will also collect record descriptions of any property adjoiners, easements benefiting and/or burdening the property, and any recorded documents affecting the land.
- Fieldwork – Fieldwork is performed based on the planned or existing use of the property being surveyed as defined by the client, lender, or insurer. The detailed survey will include the location, size, character, and type of any monuments as well as boundary control lines. It will also outline rights of way and access, including distances, street names, curbs, driveways, visible footpaths, waterways, and any such access points of adjoining properties.
- Plat or Map – ALTA Surveys are required to have the preparation of a plat or map that illustrates details from both the records research and fieldwork. Once complete, the plat or map is certified by the professional surveyor with their name, signature, and registration/license number seal.
When is an ALTA Survey Used?
Title insurance companies and/or lenders typically require an ALTA Survey to be performed whenever a piece of commercial property is being refinanced or exchanging hands. Commercial real estate can come with certain “survey risks,” including boundary line disputes, encroachments, easements, or claims of easements not found in public records, and an ALTA Survey can help identify these risks before the purchase.
Can I Use a Commercial MLS Instead of an ALTA Survey?
While a commercial MLS is a low-cost alternative to an ALTA Survey, it sacrifices some accuracy. It is usually up to the lender and underwriter as to whether an ALTA Survey is required. The commercial mortgage location survey follows the same state standards as a residential mortgage location survey, so the lender must be willing to accept these standards in place of the ALTA standards.
Although a commercial MLS may cost significantly less than an ALTA Survey, an ALTA Survey provides information about property boundaries and easements, as well as improvements such as fences, trails, roads, rights of ways, and other features on the property that may affect ownership of the property. Investing in a land survey is an investment in peace of mind, both now, and down the road that your largest investment is accurately documented and protected. At McSteen Land Surveyors we bring more than 50 years of experience to each real estate transaction. Contact us today to let us help you determine which type of survey best protects your commercial real estate purchase.
