Buying property is oftentimes the largest single investment that any of us will ever make. Doing everything you can, then, to protect that investment makes perfect sense. One of the simplest – yet most important – things that you can do before purchasing property is to have a Mortgage Location Survey completed. And trust us, your title company and lender agree!
So why is it so important to have a survey completed before closing on your real estate transaction?
A Mortgage Location Survey Confirms the Legal Description of the Property
The purpose of a Mortgage Location Survey is to confirm to the title company that what is described in the property’s deed is what is actually transferring in real life. To put it simply, a Mortgage Location Survey verifies that you are getting what you paid for. Legal descriptions can be complicated. It is the surveyors job to make sense of them and ensure that your deed covers the tract of land you intended to purchase.
You would not want to find out one day that your house sits on a parcel you don’t actually own. Sounds crazy, right? But we’ve seen it!
A Mortgage Location Survey Identifies Potential Property Issues
Although a Boundary Survey is needed to truly and fully identify your property lines, a Mortgage Location Survey will show any potential encroachments of permanent structures near the property line.
It provides the title company, and thereby the homeowner, a good picture of any potential issues, including:
- Neighbor encroachments onto your property
- Encroachment of the property you are purchasing onto other parcels
- Potential utility easements that could impact access rights to your property
Understanding these issues will help make sure you are getting the appropriate level of title insurance coverage on your investment to protect against future issues.
The Owner’s Title Insurance Won’t Cover Boundary Issues
If there is no valid survey on file, your title insurance will not cover any problems that would have been revealed by a survey. Furthermore, 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.
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 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.