Pre-closing surveys can save money, headaches

by Melissa Wilson

SBJ Staff

Though no longer required by most title companies, a $140 land survey conducted before a home buyer closes on a house can save the buyer thousands in repairs, fence, sewer or underground fiber-optic line relocation fees, or even the shock of finding out the home he or she bought is on the wrong lot.

"Years ago, everybody had to have a survey, period. That was a requirement," said Lindell Link, owner of Ozark Mountain Land Surveying. "A couple of years ago, a title company made the move to stop requiring surveys for a marketing advantage. That advantage quickly faded, because every title company jumped on the bandwagon."

Link said a result of this one-time marketing advantage is that home owners have no protection if a problem later arises with his property. The lender is protected because the title fee paid by the borrower includes insurance to protect the lender if a problem with the property should arise after closing.

Home owners are "not aware that they are not protected, and they go ahead and close the loan. Six months or six weeks down the road, a problem comes up and they're out there on their own to foot the whole bill on fixing whatever the problem is. And they've probably spent every penny they have on just getting into this house," Link said.

Link said borrowers are not being made aware at the time of closing that part of what they are paying for in closing fees is insurance to protect the lender not to protect themselves.

"Sometimes a lender will have the home buyer sign a waiver to a survey at the time of closing. If the buyer changes his mind and says that he wants a survey, the closing stops, and how many of those people have got the U-Haul truck loaded and are ready to move into their new house?" Link said.

Tom Kissee of South Creek Development, developer of Marlborough Manor subdivision, said the biggest problem he sees in his subdivision as a result of surveys not being performed is fences and irrigation systems ending up on the wrong lot because the home owner is not aware of the correct boundaries of his property.

"Streets are now curved more than they used to be, and the majority of lots have five to seven corners instead of just four. Builders may not always begin building at the correct points on a lot because of this, and a fence or irrigation system will have to be moved later," Kissee said.

Link added, "If a survey was performed at the time of loan approval, the home buyer could find out about problems with the property, if there were any, and could make the decision to move on, have the seller fix the problem or decide to live with the problem."

Kissee said some homeowners can work boundary problems out with their neighbors and not have to move the fence or sprinkler system, but this rarely happens.

"It's always a problem. I really think surveys alleviate these kinds of problems. It's much easier to work out problems before closing, and for $140, it's pretty good insurance," Kissee said.

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