ARE YOU RIDING THE FENCE ABOUT PURCHASING A SURVEY?

Traditionally, one of the steps of the settlement process is the property survey.  A professional surveyor diagrams the property to be purchased, and notes features which may not otherwise be discovered prior to closing.  For instance, a recorded easement by a public utility would be detected by a title examination in the courthouse, but not a fence that was mistakenly installed by a neighbor several feet over the property line.

Many people don't realize that in many cases surveys are no longer required by the mortgage company in order to close on resale homes.  Enhanced lender title insurance policies which are now used by most settlement agents simply "insure over" many of the minor infractions (fences, sheds, etc.) commonly discovered by a survey.  And, while I'm all for saving a few hundred dollars, I would still recommend that buyers should invest the $225-$250 in a survey before they close.

If a survey determines that your wooden privacy fence is actually on the neighbor's property, or your garden shed is in the middle of a utility easement, what should you do?

Your settlement attorney can explain in detail the implications of this predicament, but from a practical standpoint, I would advise weighing the risks against the alternatives.

If the fence is not on your property, it is possible that your neighbor may take it down.  Which of you will maintain the fence?  Often, a friendly conversation between neighbors can confirm mutual understanding, and put your mind at ease.  If your garden shed is in the middle of an easement, you should consider how difficult/expensive it will be to move in the event that becomes necessary.  What kind of easement is it, and what is the likelihood that it will ever be a problem?  If it's an inground swimming pool that is in the middle of an easement, that is a much more serious issue, and you should consult your attorney on the appropriate steps to solve the problem.

Other title problems which a survey will uncover are building setback violations.  Each locality has a prescribed setback distance which builders must abide by when siting a house on a lot, both in the front and on the sides.  Those city or county setback guidelines can be further restricted by individual neighborhood association policies.  In the event that the home you're buying violates the setback requirement, you will have to get a variance from the appropriate authority to clear the title problem.  This process could be time consuming, which is another reason to order the survey early in the settlement process.

A typical survey costs between $225 and $275, but can run substantially more if you are purchasing acreage, or property that has not been surveyed in a very long time.

I hope that I have enlightened & informed you!

Yvette Smith
757.753.7472
Williamsburg's Preferred Realtor®