How to Make Sure You Know the Boundaries of Your Property

The Difference Between a House Location Drawing and a Survey

By Roy L. Kaufmann

Prudent buyers of real estate (excluding most condos and co-ops) will want to know where the property boundaries are located, before they proceed to closing.  This article will explore the following important points:

• When the buyer has first contact with the settlement company, there should be a discussion about surveys.
• The buyer should make a careful decision about what type of survey to order.  Resist the settlement company’s suggestion that “everyone does it this way”.  That might not be the best decision for you.
• The buyer can shop for a surveyor.
• The buyer should try to have the settlement company “remove the general survey exception” from the title insurance policy.

All too often,  the settlement process moves along quickly, and decisions are made for the buyer about surveys without the buyer’s knowledge and, years later, the buyer wishes they had paid more attention and made a better decision. 

Problems that can arise later that could have been avoided if a survey had been more carefully discussed:

• Fences that do not follow the property line (google “adverse possession”). 
• Projections of the building, gardens, walkways, or driveways  onto the neighbors’ property (or vice versa).
• Location of easements – a neighbor has the right to cross over the land or a utility company has the exclusive right to use land exactly where you intended to build a shed or pool.
• There is a shared driveway and no written agreement about maintenance or splitting costs, or even worse, the possibility of losing access to the driveway. 

How to decide between a House Location Drawing and a Boundary Survey.

A buyer usually has two options: a house location drawing and a survey.  They may sound the same, and they may look similar when presented, but there are major difference.  The survey is more expensive, and takes longer to prepare, but some buyers may benefit from a survey.

	House Location Drawing	Boundary Survey
Cost	$250-$450	$750+
Time to Prepare	7-10 days	10-25 days
	Basically a “sketch”. Does not guaranty property lines.  Usually involves a field visit. The more common choice (but that doesn’t mean always the correct choice). Shows general location of property lines and visible buildings and improvements. Accurate usually to +/- one foot. Contains disclaimer: can’t be used to determine boundary lines, fence lines, location of  existing or future improvements,  or applications for permits. Generally, do not show easements or anything else that is not visible.  Not usable for boundary line disputes.  Does not include foundation certifications or wall checks.	Extremely accurate. Requires a field visit. Measures property lines. Shows distances/lengths of property lines. Cross-references with recorded and historical documents. Usually corners of property are marked with a rebar “pin” and there may be wood stakes or other visible markers Should show easements. Suitable to secure permits, build fences, property line disputes, etc.

 

House location drawings have a disclaimer which illustrates their limited use.  Here is a sample:

If you want to know absolutely where your boundary lines are, whether the fences are encroaching on to the neighbor, or you want your survey to show you where encroachments are, you should opt for a boundary survey.

Should I shop around for a surveyor?   Your settlement company has relationships with surveyors.  For a house location drawing, it is probably not worth shopping around. But, for a boundary survey, it is advisable.  Survey costs vary according to the property’s size, terrain, amount of work to do, and how quickly you need it done.  Surveyors may make more money cranking out house location drawings, so it might be a challenge to find a surveyor who is willing to do a boundary survey.

Timing:  The buyer should make the decision very early in the process between house location drawing and boundary survey.  After you read this article, you might know more about this topic than the intake person at the settlement company.  If you have questions, ask to speak to someone knowledgeable at the settlement company, or call a surveyor.  

If you are ordering a boundary survey, here is the schedule:

1. Review your purchase and sale agreement about any deadlines for objecting to survey issues or title issues.  Mark your calendar and include a reminder when the survey is due. 
2. Advise the settlement company that:
   1. You are electing a boundary survey.
   2. You would like the “general survey exception” deleted from the title insurance commitment (because they will be receiving a boundary survey);
   3. They are to send a copy of the title insurance commitment to the surveyor as soon as possible.
   4. What is the deadline for the title company to receive the survey? 
3. Advise the surveyor that:
   1. There is a deadline for the survey.  
   2. They are to show easements of record on the survey.
   3. They are not to finalize the survey until they have the title insurance commitment from the settlement company.

4. Upon receipt, review the survey and the title insurance commitment to make sure you are aware of any issues related to the survey.  You should do this before closing.

5. When you look at your title insurance commitment and policy, make sure that the general survey exception is deleted and that you understand any specific survey exceptions. Feel free to discuss concerns with the surveyor and the settlement company.

If a neighbor says that my fence is on her property and it has to be torn down, don’t I have title insurance? 

The short answer is usually “no” unless you purchased a boundary survey before closing. 

Buyers routinely buy an owner’s title insurance policy at closing.  But, a buyer might take false comfort, thinking that the title insurance policy gives protections against a claim involving boundaries.  In this example, unless you ordered a boundary survey, you will be dismayed to find that your title insurance policy has “general survey exception” that says, in effect, that there is no coverage for matters that  could have been shown on a boundary survey.  

As a general rule, buyers should always ask their settlement company to remove the “general survey exception” from the title insurance commitment and from the title insurance policy.  Sometimes this request is granted and sometimes not.  Often the decision may vary from title company to title company, but it will likely always be granted if you order a boundary survey.

Purchasing real estate is complex and you have to keep track of many issues.  While we all hope that you are never plagued by survey issues, if you carefully review the survey considerations, you will greatly reduce that possibility.