If you're refinancing or buying commercial land or property, your lender will probably require an ALTA survey. This is a common survey for commercial purchases, and it's very detailed and can take weeks to complete. This type of survey does a lot more than just identify property boundaries. It can pinpoint potential problems that may give you legal or financial headaches in the future. Here's a quick overview of how ALTA surveys work.
The Survey Involves Research And Fieldwork
Like any survey, there is fieldwork involved. The surveyor wants to find old monument markers and take measurements of the property. The surveyor might use lasers and drones to take a multitude of measurements that they can study later to create reports.
The survey company also researches public records, property records, and private records to learn as much as possible about the land and structures on it. They might interview previous owners and neighbors. They may research neighboring properties as well. Research could be complex and require weeks to complete, but then you'll have a full understanding of the property.
Details Noted On An ALTA Survey
An ALTA survey provides data about all of the structures on the land, including their dimensions and distance from easements and property lines. The survey also notes access roads, utilities, boundary lines, and water sources. The boundary lines fall under scrutiny to make sure the property owner or a neighbor isn't encroaching on the other's property.
The physical measurements taken determine the elevation of the land in relation to the flood table. This lets you know how much work the land needs to keep it from flooding.
Rights and easements are also researched and marked on the documents if they exist. These are sometimes missing from property records, and you'll definitely want to know if someone has a legal right to water or road access on the property.
An ALTA survey can also provide parking information so you know how many customers or employees you can handle on the property. The survey can provide square footage details to make it easier to estimate building plans. It also provides zoning information, which is important, since you need property that's zoned for the type of business you have.
When the survey is complete, you'll know the history of the land and structures on it. This could be important to know if the land has been used previously for some sort of toxic waste handling or production.
All of this information helps form an accurate value for the cost of the property and gives the lender an idea of whether the land is worth the risk of a mortgage. Plus, the information might be needed so you can get title insurance for the property when you buy it.
