What is an ALTA Survey?
An ALTA survey, short for “American Land Title Association” survey, is a detailed and comprehensive type of land survey commonly used in commercial real estate transactions in the United States. The purpose of an ALTA survey is to provide title insurance companies and lenders with detailed information about a property’s boundaries, improvements, easements, and other significant features. This survey is crucial in ensuring that all parties involved have a clear understanding of the property and its potential risks.
Here are some brief points surrounding an ALTA survey:
1.) Survey Standards: ALTA surveys adhere to specific standards set forth by the American Land Title Association and the National Society of Professional Surveyors. These standards outline the minimum requirements for conducting the survey.
2.) Surveyor Qualifications: ALTA surveys must be conducted by licensed professional land surveyors who are familiar with the standards and regulations governing land surveys in the particular state where the property is located.
3.) Components of an ALTA Survey:
Boundary Lines: The survey identifies and locates the property’s boundary lines.
Easements: Existing easements, such as rights of way for utilities or access rights, are outlined.
Improvements: Structures, buildings, and other improvements on the property are accurately depicted.
Zoning Information: The survey may include zoning classifications and restrictions affecting the property.
Topographical Features: Natural features like hills, water bodies, and other topographical details are often included.
Flood Zone Information: If applicable, the survey may indicate whether the property is located in a designated flood zone.
4.) Title Commitment and Survey Relationship: The ALTA survey is often prepared in conjunction with a title commitment, and the surveyor works closely with the title company to ensure that all potential issues are addressed.
5.) Purpose in Real Estate Transactions: ALTA surveys are typically required by title insurance companies and lenders during commercial real estate transactions. The survey helps identify potential risks and liabilities associated with the property.
6.) Cost and Timing: The cost of an ALTA survey can vary depending on the size and complexity of the property. It is generally conducted during the due diligence phase of a real estate transaction.
7.) Updates and Re-Certification: If there are significant changes to the property or if a certain period has passed since the last survey, a new ALTA survey may be required. Surveyors may need to re-certify the accuracy of the survey.
The ALTA survey stands as a vital component in commercial real estate transactions, offering a comprehensive and standardized analysis of a property’s features. It facilitates a clear understanding of boundaries, easements, improvements, and potential risks. This provides essential information for title insurance companies, lenders, and all stakeholders involved in the transaction. Its adherence to strict standards and the involvement of licensed surveyors underscore its significance in ensuring transparency and minimizing uncertainties in the real estate landscape.
Disclaimer: This information is provided for general informational purposes only and should not be considered as legal or financial advice. The details surrounding ALTA surveys may vary based on jurisdiction, and specific circumstances of individual real estate transactions. Readers are advised to consult with qualified professionals such as attorneys, surveyors, or other relevant experts to obtain advice tailored to their specific needs and situations.
