What is an ALTA Survey?
An ALTA Survey is a complex survey that includes a boundary survey plus a detailed depiction of property improvements, easements, and anything else impacting the parcel. It expands beyond a standard state-dictated boundary survey to require a surveyor to collect and document data from a combination of records and fieldwork that support the needs of title companies and real property insurance requirements, typically used on commercial property transfer.
It adheres to a set of minimum standards established by the American Land Title Association and the National Society of Professional Surveyors. It is used primarily for securing title insurance at the closing of a commercial real estate deal.
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.
When do you need an ALTA Survey?
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 and may be required for the purchase of vacant land.
Commercial Real Estate – These transactions can come with certain “survey risks,” including boundary line disputes, encroachments, easements, or claims of easements not found in public records. An ALTA Survey can help identify these risks before the purchase and assure all interested parties, including lenders, title insurance companies, attorneys, and owners, that all survey elements impacting title related to the subject site are considered and dealt with.
Vacant Land – An ALTA survey may also be required for the purchase of vacant land intended for development. While a boundary survey may satisfy the minimum requirements in this case, often vacant land has either never been surveyed or was surveyed long ago and updated survey records are now required for accuracy. This means there could be boundary, ownership, or encroachment issues that are unknown at the time of purchase and an ALTA protects against these concerns.
What are the benefits of an ALTA Survey?
An ALTA survey is more intensive than other land surveys and provides more comprehensive and detailed information. It includes information about property boundaries and easements, as well as improvements such as buildings, fences, trails, roads, rights of ways, and other features on the property that may affect ownership of the property and may require further investigation into the possibility of title concerns. An ALTA survey can also show the means of access to the property, the zoning classification for the property, and the flood zone classification for the property.
An ALTA survey is a critical part of commercial real estate transactions, offering buyers a clear, recorded view of a property to compare to legal descriptions and a property’s improvements as they relate to said property boundaries. At McSteen, 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.