To Survey Or Not To Survey

By: Anessa Cohen

Usually, when we discuss putting your house on the market, we talk about how to prepare it for potential buyers. What we don’t usually talk about are the different closing costs that come into play once a buyer has found their dream house, and whether they can avoid some of the closing costs by opting out.

This past week, a question came up on the local community blog asking if anyone out there could comment on whether or not a survey was necessary or just a rip-off forced onto buyers. I did not answer it at the time because I felt it was important to address this issue beyond the frustration of one person who was trying to educate himself regarding this particular expense while analyzing closing costs.

This person put into writing what many are obviously pondering as they look at the different expenses that add up to a substantial expense called “closing costs.” One of those expenses is a survey that can cost in the range of $1,000 when one is not already available from the seller.

So, what is the real purpose of a survey and do you really need to get one as part of a closing if one is not already available from the seller? A survey is a diagram that is certified by a surveyor who has come to the property and intricately measured out the property lines based on the legal description listed in the deed that will be transferred to you (also known as Schedule A). The surveyor measures and draws out the exact measurements and placement of the existing structures on the property so there is no question where the property begins and ends. If there are any easements or other items infringing on the property lines (such as a neighbor’s fence, structures, or even electrical or telephone lines) the survey will show this as well. A survey is really the only visual source that can show you what you’re buying (or have bought), documenting your property rights based on certified measurements. This is a document you will need for however long you own your property.

Of course, if a survey is already available through the seller, this is the easiest way of saving money since it’s free as long as it’s still usable. Usable actually translates to how old it is. If a survey is 30 years old, typically the bank giving the mortgage and the title company giving the title insurance will not accept it as usable since many things may have changed after so many years. These changes may have affected the property and the surrounding area, causing the existing survey to be incorrect. If you have been offered an existing survey by the seller, the first step is to give it to your attorney, who will then confer with the title company and bank to see if it’s possible to use it, saving you the cost of having a new survey made up.

If using the existing survey is not possible, or if an existing survey is not available, then getting a new survey made is not only essential, but non-negotiable since besides showing the new buyers what exactly they are buying and where their property lines exist, it is also the only way a title company can document specifically what they’re providing title insurance for to ensure that no problems exist with that property. In the case of the mortgage bank, they similarly need to document what property they are providing a mortgage for to ensure that no problems exist to the property that would harm the investment they have elected to take on. When a bank decides to give a mortgage, they are investing money in the fact that the property is free and clear of impediments, and the survey is part of the process of ensuring the soundness of their investment. n

Anessa Cohen lives in Cedarhurst and is a Licensed Real Estate Broker (Anessa V Cohen Realty) with over 20 years of experience offering full service real estate residential, management and commercial services. She can be reached at 516-569-5007. Readers are encouraged to send any questions or scenarios by email to [email protected].