An ALTA (American Land Title Association) survey is a type of land survey that provides detailed information about a property, including its boundaries, topography, and any improvements or encroachments on the property.
ALTA surveys are important for real estate transactions, as they provide a comprehensive view of the property and help ensure that all parties involved in the transaction have a clear understanding of the property’s characteristics. They can help prevent disputes and ensure that the transaction is completed smoothly.
ALTA surveys are detailed, comprehensive surveys that are typically conducted for commercial or high-value properties. They provide information about the property’s boundaries, topography, improvements, encroachments, and other important details. The survey is typically ordered by the buyer or lender, and is used as part of the due diligence process for the transaction.
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What is an ALTA Survey?
The American Land Title Association (ALTA) is a trade association that represents the land title insurance industry in the United States. The ALTA sets standards for land title insurance and surveys, and provides education and resources to its members.
ALTA surveys are important in the real estate domain as they provide a detailed view of the property and help ensure that all parties involved in the transaction have a clear understanding of the property’s characteristics. They can help prevent disputes and ensure that the transaction is completed smoothly.
ALTA surveys provide information about the property’s boundaries, topography, improvements, encroachments, and other important details. They may also include information about zoning, easements, rights of way, and other important information about the property and its surroundings. The survey provides a comprehensive view of the property, which can be used for various purposes, including real estate transactions, financing, and property management.
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Why ALTA Survey is Required?
Role of Lending Institutions, Banks, Title Companies, and Insurance Companies:
Lending institutions, banks, title companies, and insurance companies require an ALTA Survey to determine the ownership, use, and physical characteristics of the property being purchased or used as collateral. The survey also helps identify any potential risks or liabilities associated with the property. This information is crucial for lending institutions and banks when deciding whether to extend a loan for the property. It also helps title companies and insurance companies in the preparation of title insurance policies and ensuring that the policies accurately reflect the current condition of the property.
Purpose of ALTA Survey:
The purpose of an ALTA Survey is to provide a comprehensive and accurate picture of a property and its boundaries. The survey provides information on the location of buildings, structures, improvements, and other physical features on the property, as well as any easements, rights-of-way, or encroachments that may affect the property. This information is important for both the buyer and seller of a property, as it helps to ensure that the property being purchased is as described, and that there are no disputes or misunderstandings about the property’s boundaries or other important features.
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Title Commitment before ALTA Survey:
A title commitment is a document that outlines the terms and conditions of a title insurance policy. The title commitment is issued before an ALTA Survey is conducted, and it serves as a preliminary report on the status of the title for the property in question. The title commitment includes information about the ownership of the property, any liens or encumbrances, and any other matters that may affect the title to the property.
The title commitment is reviewed by the surveyor conducting the ALTA Survey, who uses the information contained in the title commitment to prepare the survey. The survey then provides a comprehensive and accurate representation of the property, and any title issues or other problems are addressed before the title insurance policy is issued.
Steps in ALTA Survey
Research of Property Records:
Before conducting the survey, a thorough review of the property records is performed to gather information about the history of the property, including previous ownerships, encumbrances, and liens. This information helps in identifying any potential issues or conflicts that may arise during the survey process.
Physical Analysis of Property and Boundary Lines:
The physical analysis of the property involves visiting the site and performing a thorough analysis of the property’s boundaries, structures, and topographical features. This helps to determine the accurate location of the property lines and any potential encroachments or disputes with neighboring properties.
Property Analysis:
The next step is to analyze the property and its surroundings to identify any potential issues or conflicts. This includes reviewing the location of easements, rights of way, and other property rights that may impact the property.
Preparation of Map of Survey:
After the property analysis, the surveyor creates a detailed map of the property that includes the boundary lines, topographical features, and all relevant information gathered during the survey process.
Review of Map by Title Company:
The map is then reviewed by the title company to ensure that it accurately reflects the information gathered during the survey process and meets the requirements set by the American Land Title Association (ALTA).
Signing and Sealing of Map:
The final step is the signing and sealing of the map by the licensed surveyor. This certifies that the map is an accurate representation of the property and its boundaries and can be used for legal purposes, including real estate transactions and lending.
When Do You Need an ALTA Survey?
ALTA survey is a comprehensive survey of a property performed by a licensed land surveyor. It provides detailed information about the property and its boundaries, as well as any improvements or encroachments on the property.
The cost of an ALTA survey can vary depending on the size and complexity of the property being surveyed. On average, the cost of an ALTA survey ranges from $800 to $1,500.
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Situations when ALTA Survey is Needed or Suggested:
Buying or Selling Commercial Real Estate:
When buying or selling commercial real estate, an ALTA survey is often required to help ensure that the buyer is aware of any potential issues with the property before the sale is completed.
Buying a Piece of Vacant Land:
If you’re buying a piece of vacant land, an ALTA survey can help you understand the exact boundaries of the property, as well as any encroachments or improvements on the land.
Resolving Property Disputes:
If you’re involved in a property dispute, an ALTA survey can help provide accurate and up-to-date information about the property and its boundaries. This information can be used to resolve the dispute and help the parties come to a resolution.
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Conclusion
The ALTA Survey is an important aspect of the real estate industry, providing accurate information on the property being bought or sold. The ALTA Survey is an essential tool used by lending institutions, banks, title companies, and insurance companies to ensure the proper transfer of property ownership. The survey provides information on the location and boundaries of a property, including any encroachments or easements, and helps to resolve property disputes.
In conclusion, the ALTA Survey is a valuable resource for anyone involved in the buying or selling of commercial real estate or vacant land. The survey provides a detailed and accurate representation of the property, making it an essential part of the due diligence process. Whether you are buying or selling property, an ALTA Survey can help to ensure a smooth and successful transaction by providing the information necessary to make informed decisions.