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Do I really need a survey?

By
Real Estate Broker/Owner with ERA Heavener Realty Co.

I thought I would take a minute to explain why surveys are important.  I often handle the purchase of investment properties that typically involve the buyer being responsible for all closing costs.  In these situations I am constantly being asked to not order a survey.  When asked this I usually tell this story.

I had taken a buyer to a property which he liked and the seller and the buyer agreed on a price.  About a week before closing the title company ordered the survey.  When it came back we had issues.  About two years prior the seller had decided to deed the front half acre of her property to her daughter to place a mobile home on it.  Unfortunately, the deed was incorrectly recorded and instead of splitting the lot horizontally the description on the deed split it vertically.  This literally split the house down the middle.  While this sounds easily remedied, the seller and her daughter had a falling out, and when approached about correcting the problem the daughter said, "Sure, for the right price."  Well the right price was all the equity the mother had in the property, and needless to say the deal fell apart.

So, while I understand the desire to save $300, I have seen it cost much more if you are that one time a survey would have been the right call.

Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

They do have their part in the world but when a property is sold every two or three years it becomes redundant.

Mar 19, 2008 03:01 AM
James Armstrong
Expert Real Estate Advisors - Mount Dora, FL
I handle everything from contract to closing
As someone who has examined many titles and reviewed many surveys over the years I would say they play great importance.  I agree they can be a little bit redundant when a property changes hands several times in a short period of time. BUT, as mentioned in the example in the first post, surveys can make or break deals, especially if there are potential easement and boundary issues.  In cash transactions (where there is no lender to require a survey as a closing condition) it is OK to use an existing survey as long as the seller is willing to sign a survey affidavit of no change.  I still would run title though to be sure no easements or partitions of the property occurred since the last survey.
Mar 19, 2008 06:38 AM
Dale Simmons
Realty - Orange Park, FL

Great post, keep up the good work!

Mar 31, 2008 07:50 AM
Palm Coast Homes
100 Plus Realty LLC - Palm Coast, FL
Palm Coast/Flagler County Real Estate, The Ross/Co
Thanks Matthew...more great info as always.  There are just some things that you should cough up the money for...sort of like insurance...silly to try to save a couple of bucks only to have to spend much more later.
Apr 04, 2008 09:39 AM