MARCUS PETERSEN
Director of Mortgage
Marcus manages our extensive team of CAD drafters and facilitates a quality product for our clients by overseeing company mortgage location standards and acting as a liaison between field, drafting and licensed review.
Quick Answer: A problem found on a property survey—such as an encroachment, easement concern, setback issue, or legal description discrepancy—does not necessarily stop a real estate closing or determine who must pay to resolve it. In Ohio and Indiana, the next step is to review the finding with the appropriate parties and determine whether it can be addressed through documentation or negotiation, or whether additional investigation or a Boundary Survey is needed.
Finding an unexpected issue on a property survey can be concerning, especially when a closing date is approaching. But a survey finding is information, not an automatic deal-breaker.
A fence may appear to extend beyond a property line. A garage may sit within an easement. An addition may raise a setback concern. Or the legal description supplied for the transaction may not line up with what the surveyor observes in the field.
What happens next depends on what was found and the type of survey performed. Some issues can be addressed through document or title review. Others may require additional surveying, input from local authorities, negotiations between property owners, or legal guidance.
The good news is that a survey finding does not automatically mean a real estate transaction cannot close. It means there is new information that parties need to evaluate. Depending on what was found, the next step may be as simple as reviewing documents or may require additional surveying, title work, legal review, or a resolution between property owners.
Here is what that process can look like in Ohio and Indiana.
First: Understand What the Survey Actually Found
Before deciding how to address an issue, it is important to understand exactly what the survey shows—and what type of survey produced the finding.
In Ohio, a Mortgage Location is commonly used in residential lending and title transactions. Ohio standards require the surveyor to show major improvements, applicable easement and setback information provided through the appropriate records, apparent encroachments, certain visible utility facilities, and fences or other evidence of possession that are not in substantial conformance with the legal description. A Mortgage Location is specifically not a Boundary Survey.
Indiana uses a Surveyor Location Report, or SLR, for certain residential loan and title insurance purposes. Indiana standards require an SLR to document visible evidence of possession and its relationship to an adjacent boundary or depicted easement to reveal possible encroachments, along with buildings, structures, and other required property information. An SLR also has a limited scope and is not a substitute for a Boundary Survey when the actual location of a property boundary needs to be established.
That distinction matters. A Mortgage Location or SLR may flag a potential problem, but some findings require a Boundary Survey or other investigation before anyone can determine the appropriate resolution.
What Kinds of Problems Can a Survey Reveal?
No two properties are exactly alike, but several types of findings regularly come up during real estate transactions.
Encroachments
An encroachment occurs when an improvement appears to extend across a property boundary or into an area where it may not belong. Fences, sheds, garages, driveways, decks, and other improvements can all raise questions about encroachment.
Sometimes an improvement has existed for years without anyone questioning its location. That does not mean it should be ignored during a new transaction. Once the condition appears on a survey or location report, the title company, lender, buyer, and other appropriate parties can determine whether further investigation is necessary.
Easement Concerns
Easements give another party certain rights to use a portion of a property for a specified purpose. Utility and access easements are common examples.
A survey may show that an improvement is located within a recorded easement or identify visible conditions that warrant additional review. That does not automatically mean the improvement must be removed. The easement documents, property records, title requirements, and specific circumstances all matter.
Setback Issues
Local zoning regulations may establish minimum distances between structures and property lines, streets, or other features. A survey can reveal that an existing structure appears inconsistent with a setback shown in the information supplied for the survey.
Because zoning requirements vary by jurisdiction and property, the appropriate local authority may need to determine whether the condition is permitted, legally nonconforming, subject to a variance, or requires another solution.
Legal Description Discrepancies
Sometimes the concern is not a fence or building. It is the paperwork.
In Ohio, if a professional surveyor determines that the legal description supplied for a Mortgage Location contains apparent incompleteness or insufficiencies, state standards require the surveyor to advise the client.
A discrepancy between the legal description and field conditions deserves attention because that description identifies the real estate involved in the transaction. Resolving the issue may require additional survey work, corrected documentation, title review, or legal assistance depending on the circumstances.
So, What Happens After a Problem Is Found?
There is no universal fix for a survey issue. The right response depends on what was found, the type of survey performed, the title and lender requirements, and the parties involved in the transaction.
In a typical residential transaction, the process may include the following steps.
1. The Finding Is Documented and Communicated
The surveyor’s first job is to accurately report the relevant conditions discovered through the work performed.
For McSteen clients, communication is an important part of that process. We know that title processors and lenders are often working against firm closing dates, so a question discovered in the field is more useful when the people managing the transaction know about it promptly.
The surveyor identifies and documents the condition. The parties responsible for the transaction then determine what action, if any, is necessary.
2. The Title Company and Lender Review the Issue
A surveyor identifies property conditions; the surveyor does not decide whether a title company will insure a particular risk or whether a lender will approve a loan.
Once an issue is identified, the title company may review it against the title commitment and recorded documents. The lender may also need to determine whether the condition affects its requirements. Depending on the issue, attorneys, local government officials, property owners, or other professionals may become involved.
The important point is that a survey finding is information, not an automatic verdict on the transaction.
3. Additional Survey Work May Be Needed
If a Mortgage Location in Ohio or an SLR in Indiana raises a genuine boundary question, a Boundary Survey may be the next step.
The key distinction is that a boundary survey provides a precise determination of property boundaries for legal and construction purposes, while a mortgage location | SLR offers an overview primarily to satisfy lender and title insurance requirements for property purchases by mapping the legal description of the deed transferring.
If the question is “Where is the legal property line?”, a Boundary Survey is generally the appropriate surveying service.
4. The Parties Determine How to Resolve the Issue
Once there is enough information to understand the problem, the appropriate parties can decide how to proceed.
Depending on the circumstances, that could involve correcting documents, obtaining additional title review, addressing a zoning question, negotiating between buyer and seller, obtaining an agreement between neighboring owners, or completing additional survey work. More complicated property-rights questions may require advice from a real estate attorney.
Not every solution requires moving a fence or tearing down a structure. Likewise, not every issue can be solved simply by changing paperwork. The facts of the property and the requirements of the transaction determine the path forward.
5. Closing Moves Forward When the Necessary Parties Are Satisfied
If the issue can be resolved—or handled in a manner acceptable to the title company, lender, buyer, seller, and other applicable parties—the transaction can continue toward closing.
How long that takes varies widely. A straightforward document question may be addressed relatively quickly, while a boundary dispute or complicated title issue can take considerably longer. This is one reason early survey ordering matters. Finding an issue several days or weeks before closing gives everyone more room to work than discovering it at the closing table.
Can You Still Close If a Survey Finds an Encroachment?
Potentially, yes. An encroachment does not automatically prevent a real estate closing.
What happens next depends on the nature and extent of the encroachment, the title company’s underwriting requirements, the lender’s requirements, the relevant documents, and how the parties choose to address it.
A small fence concern and a building extending across a disputed boundary are very different situations. Both deserve attention, but they should not be treated as if they carry the same level of risk or require the same solution.
When a Location Report raises a boundary question that cannot be answered within its limited scope, a Boundary Survey may be necessary to establish the boundary before the issue can be fully evaluated.
Does the Seller Have to Fix a Survey Problem?
Not necessarily.
Who is responsible for addressing a survey issue depends on the purchase agreement, the nature of the finding, applicable title and lender requirements, and any negotiations between the parties. Surveyors document the property conditions within the scope of their work; they do not determine contractual responsibility between a buyer and seller.
Buyers and sellers should work with their real estate professionals, title company, lender, and legal counsel when necessary to understand their options.
Will Title Insurance Cover a Survey Problem?
That depends on the policy, its exceptions, endorsements, the specific issue, and the title insurer’s underwriting decision.
A survey can give a title company information it needs to evaluate matters that may affect coverage, but having a survey does not mean that every condition shown on it will automatically be insured. Likewise, the surveyor does not make the coverage determination.
Questions about whether a particular encroachment, easement, boundary matter, or other condition will be covered should be directed to the title company or title insurer handling the transaction.
The Best Time to Find a Survey Problem Is Before Closing
Nobody orders a survey hoping it will uncover a problem. But finding one early is far better than learning about it after ownership has transferred or when a future project is already underway.
That is where an experienced survey partner makes a difference.
For more than 55 years, McSteen has worked with title companies, lenders, attorneys, real estate professionals, and property owners to provide accurate land services and responsive communication. Our goal isn’t simply to deliver a report. It’s to help our clients understand what it shows, answer surveying questions, and identify when a different level of survey work may be needed.
With service throughout Ohio and Indiana, our team combines experienced licensed surveyors, responsive support, and technology such as Survey Tracker to give clients visibility into their orders.
Have a question about a survey finding or aren’t sure which survey you need? Contact McSteen.
Frequently Asked Questions
The surveyor documents the condition, and the appropriate parties—often the title company, lender, buyer, seller, or their representatives—review what it means for the transaction. Additional documentation, a Boundary Survey, title review, legal guidance, or another form of resolution may be needed depending on the issue.
No. An apparent encroachment does not automatically mean a transaction cannot close. Its significance and the steps required to address it depend on the facts, title underwriting, lender requirements, and the parties involved.
No. Mortgage Locations and SLRs have a limited purpose and should not be used to establish legal property boundaries or settle boundary disputes. A Boundary Survey is generally the appropriate surveying service when the actual boundary needs to be established.
First, determine what type of survey you have. If a Mortgage Location or SLR identifies a possible encroachment, additional survey work may be necessary before treating the depicted location as a definitive property boundary. Depending on the circumstances, the title company, property owners, and legal counsel may also need to review the issue.
The surveyor reports surveying findings but does not make the final lending, title insurance, or contractual decision. Depending on the issue, the lender, title insurer or title company, buyer, seller, attorneys, and other applicable parties may determine whether and how the transaction can proceed.
Order the appropriate survey early, provide complete and accurate property and title information, and work with a survey partner that communicates promptly when questions arise. McSteen’s current standard turnaround for Mortgage Locations and SLRs is typically about four business days, although timing can vary by location and seasonal demand.