When Is a Survey Done When Buying a House?

A property survey is a detailed examination of a property’s legal boundaries and physical features. It establishes what land is included in a purchase and identifies any discrepancies with existing records. The survey is a significant component in the home-buying process, ensuring buyers understand the property they intend to acquire. It provides information that can prevent future disputes and helps in making informed decisions.

The Role of a Property Survey in Home Buying

A property survey clarifies the precise dimensions and features of a property. It creates a legal document and map outlining boundaries, building locations, structures, and other elements. This assessment helps identify issues like boundary discrepancies, where property lines may not align with fences or markers. It also reveals encroachments, which occur when a structure from an adjacent property extends onto the land being purchased, or vice versa.

Surveys uncover easements and rights-of-way, which grant others the legal right to use a portion of the property for specific purposes, such as utility lines or access paths. Without a survey, these limitations might remain unknown, affecting the buyer’s future use. A survey can also identify unrecorded structures or modifications that may not comply with local zoning regulations, preventing legal complications or costly repairs. Understanding these aspects provides a clear picture of what is being purchased, preventing future conflicts and ensuring compliance.

Standard Timing in the Purchase Process

A property survey takes place after the purchase agreement is signed but before the final closing. This timing aligns with the due diligence or inspection period, allowing the buyer to evaluate the property’s characteristics. Once an offer is accepted, the buyer can proceed with ordering the survey. This strategic placement ensures that survey findings can inform the buyer’s decision before they are legally bound to finalize the purchase.

The process involves the buyer or their title company arranging for a licensed land surveyor. The surveyor performs fieldwork, researches historical records, and compiles a report and map. Completing the survey during this window provides an opportunity for the buyer to address newly discovered issues with the seller, potentially leading to renegotiation of terms or even withdrawal from the contract if significant problems arise. The survey results are often required by lenders for loan approval, necessitating its completion several days before closing.

Situations Requiring a Property Survey

While not always universally mandated, a property survey is often essential or highly advisable in specific circumstances. For instance, purchasing older homes or properties with a long history can present unclear or disputed boundaries, making a survey invaluable for establishing precise lines. Rural land or properties with large acreage often benefit from a survey due to less defined boundaries compared to urban subdivisions. A survey is also recommended when a buyer plans renovations, additions, or new structures like fences or pools, as it ensures compliance with setback rules and prevents encroachment on neighboring land.

Certain loan types or title insurance policies may necessitate a property survey. Many mortgage lenders require a survey to ensure clear boundaries and identify any potential encroachments that could impact its value as collateral. Conventional loans frequently require a survey, while FHA and VA loans also often have this requirement. Title insurance companies, particularly when offering extended coverage, may require a survey to protect against undisclosed issues like boundary disputes or unrecorded easements. Without a survey, the title insurance policy might include exceptions for problems that a survey would have uncovered, potentially leaving the homeowner unprotected.

Acting on Survey Findings

After the property survey is completed, buyers should review the report with their surveyor to understand all findings. Common issues include discrepancies between recorded boundaries and physical markers, encroachments by neighboring structures, or previously unknown easements affecting the property. The surveyor can explain the implications of these findings and offer insights into their severity.

If the survey reveals significant problems, buyers have several actions. They can use the findings as leverage to negotiate with the seller, requesting a price reduction to cover necessary repairs or adjustments. Buyers may also ask the seller to remedy identified issues before closing. If problems are substantial or impact the buyer’s intended use of the property, seeking legal advice from a real estate attorney is a prudent step. If critical issues are uncovered that cannot be resolved to the buyer’s satisfaction, they retain the option to withdraw from the purchase, typically without penalty, as long as the contract includes relevant contingencies.