Survey question..????

Question

We are buying a house. Well we tracted down the first survey done only 2 years ago and was told we should have no problem using it. Well yesterday we were told the title company wouldn't except it and we have to have a new one. WHY???? the survey like i said was only 2 years old the house is only 3 years old, why wouldn't they except it???? The morgage company has been telling us for weeks that this survey would work, then 5 days before we are suppost to close we find out different.

Answer 1

I don't know if the laws vary by state or not, but here's how it works in Texas. The survey is addressed in paragraph 6-C of the contract. There are 3 choices. Choices 2 and 3 require a new survey be ordered at either buyer or seller's expense. Choice 1 requires that the seller produce their old survey, with a signed affidavit stating that there have been no changes done to the property, within an agreed number of days. If it's not acceptable to either the lender or title company, then there's a choice as to who will pay for the new one. The last sentence is a kicker - "If Seller fails to furnish the existing survey or Affidavit within the time prescribed, Buyer shall obtain a new survey at Seller's expense no later than 3 days prior to the Closing Date."

It's a touchy situation at best, but you need to keep in mind the PURPOSE of the survey. It's not only to tell you where the fence is - it also tells if there is anything inside of easements (sheds, pools, carports, patios, etc.) if the seller has added anything to the property, then the old survey is no longer an accurate representation of what's there. The title company is going to insure that you can use the property the way it is, and the lender shouldn't lend unless they know that there is nothing in the easements too.

Also, if something WAS added to the yard - like a $85,000 inground pool - then YOU want to make sure it's not in any kind of easement. If it gets past everybody in this sale, and gets caught when you sell, then you will be left keeping the property, or selling at a reduced price.

One last thing - sometimes the title company will not accept the survey if the copy they have is not signed by the surveyor. For a fee (less than the cost of a new survey) the original company may sign it for you. Provided they can verify that no changes have been made.

Answer 2

Surveys identify more than than the borders of the property. They should also identify flood zones, easements (public and private), that fence lines and outbuildings (improvements) are within code, and validate information on public deeds.

In most cases, I try to avoid them as well, but some mortgage companies require surveys to be completed within 3mos to 1yr of the sale.

If you obtained in writing from the lender that the current survey was satisfactory, you can tell them to shove it and find a better, more amiable lender. If however, in most cases, the requirements favor the lender that requirement will have to be met.

The surveys tend not to be too expensive, $100-$400 (depending on location and the size of the lot), and you can usually include the cost in the mortgage.

Remember that the lender is not doing you a favor by loaning you money. You should be comfortable with them, as well as they with you.

Good luck.

Answer 3

Different title companies have different requirements.
Mortgage companies often use several title companies.
Often the mortgage lender makes assumptions based on past experiences. But the title companys make their decisions based on individual cases. The title company's job is very specific, and the lender should not make ANY assumptions about what a title company will or won't accept. The final word on the subject goes to the title company. If you have a gripe, it is with the mortgage company representative who gave you bad information.
See if you can get the attention of the manager of the mortgage company to make it up to you in some way. (like reducing some fees, etc.) They have to be responsible for their errors, too.