A Mortgage Location Survey (MLS) is different from a boundary survey and is not used for construction or for boundary determinations. Rather, it is intended to confirm that what is described in the property’s deed is what is actually transferring in real life.
Mortgage Loan Purposes
An MLS is usually requested – and sometimes required – by your mortgage lender or title insurance company when you buy a home to verify that the property they’re lending you money to purchase is as described in legal documents and is suitable as collateral for your mortgage loan. These surveys identify the major buildings on your property such as the house, garage, and sheds, as well as whether your property encroaches on any neighboring properties or easements. Likewise, these surveys determine whether any neighboring properties encroach on your property.
Typically if you are financing your home purchase, your lender will require an MLS as a condition of the mortgage. The mortgage lender wants legal documentation of the real estate they will be holding an interest in, what structures are on the property, and where they are in relation to the property lines.
Title Insurance Implications
Also, if there is not a valid MLS on file, your title insurance will not cover any problems that would have been revealed by a survey. Even if an underwriter issues a homeowner’s title insurance policy with a survey from the previous owner, the new owner will not be covered for title claims relating to boundary issues. These issues will be listed as exceptions in the title commitment. Usually, the only way to remove these exceptions with your title insurer is to obtain a new survey.
Peace of Mind – Now and in the Future
A mortgage location survey is an investment in peace of mind, both now and down the road, that your property is protected. With 50 years of experience in surveying in all 88 counties of Ohio, McSteen Land Surveyors is a leader in the industry. Contact us or order a survey and let our team of survey professionals take on your surveying needs.
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