Many different parties can use an ALTA survey for their benefit. Title Insurance companies, attorneys, lenders and developers are the four professional constituencies that are most likely to use a survey.
Broadly used to evaluate an investment in land, an ALTA survey is an essential tool for the design of structure to be built on land, and to validate the viability of a project from the standpoint of a lender.
ALTA/NSPS Surveys for commercial transactions
An ordinary boundary survey may suffice for a property owner if there is no lender involved in the transaction. However, if a lender and a title company are involved, it is likely they will require an ALTA Survey.
Not only does an ALTA Survey indicate boundaries, but it also divulges survey risks. Title companies will generally require an ALTA Survey prior to issuing coverage to a property owner. Survey risks include encroachments, boundary line disputes, easements and claims that may not be indicated in a survey of public records.
It is often non-recorded risks that present the greatest potential threat to an acquisition. An ALTA Survey can be an essential tool for an owner and a lender to determine whether to proceed with an acquisition or a loan.
Commercial property lenders use ALTA Surveys to ensure value, correct zoning, and the conformation of any development with the corresponding zoning. Since an ALTA Survey adheres to common standards, it provides an excellent foundation for all parties who are engaged in the due diligence effort for an acquisition or new development.
Timing for an ALTA Survey
While many lenders will elect to have an owner commission an ALTA Survey prior to funding an acquisition or construction loan, the completed survey is just as important at the end of the project to ensure compliance with applicable zoning laws. Also, have the survey done or revised once a project is complete can ascertain whether there have been any deviations from the engineering or architectural plans.
At Millman National Land Services, we provide ALTA Surveys and other services to ensure that owners, lenders, title companies and attorneys have the confidence that their investments are protected. We invite your inquires and look forward to serving you with our in-house professional staff.