“To survey or not to survey” : The question for cash buyers

Cash buyers of single family homes are not required to order a survey. Why spend $350 +/- on a survey?

First let’s recap what a property survey is. A survey establishes the property boundaries (shape and size) of the property you intend to purchase, it reveals encroachments and easements on the property (if any exist) and it also provides information on the access to your property (i.e. driveway). A survey is certified to the buyer, the title company and the lender (when applicable).

Here is the short list of why getting a property survey matters and why buyers should not be stingy with this important aspect of due diligence:

A survey will show encroachments by a neighbor’s building, driveway, fence or other structures.
A survey will disclose recorded easements. An easement is a public utility or municipality’s right to use your property. A common example is an FPL easement giving them rights tear up or change your driveway, if needed. Buyers purchasing a property with easements need to determine how it could affect the marketability of their property in the future.
A survey will show boundary, party wall or setback agreements
A survey will show how a property is accessed and any potential encumbrances to that access
A survey will show a right of access wiped out by foreclosure on neighboring land
A survey outlines the size and shape of land
A survey can reveal discrepancies between size of building or land and the public record.

Survey costs vary and are usually based on the size of the property and the difficulty level of the project. A buyer may obtain quotes for a survey and select their own surveyor. A surveyor needs to be licensed, bonded and insured.

What happens if I don’t order a survey? You will sign a survey waiver and hold the title company harmless from any survey issues and survey-related title defects. In the event that issues do arise, you will have no recourse against the title policy for the defect. The survey coverage will also be an exception to the title policy.

Here is a sample of what a survey looks like:

why get a survey? — Why should buyers get a survey? Because their investment can be jeopardized without one.

The Closing Company, Inc. is a full service title, escrow and settlement agency licensed and bonded in the State of Florida. Our services include refinance, purchase, private lending legal representation, real estate law and litigation and real estate document preparation. We assist clients in navigating the complicated and risky real estate market with solid legal and title expertise. For more information, please contact info@theclosingcompany.net or 305-271-0100×701

Disclaimer: The Closing Company is not providing legal, estate planning, tax or investment advice. Please consult with a licensed Attorney for legal advice or before signing any legal documents. Please consult with a CPA for tax planning and advice.