If you’re thinking about buying vacant land, commercial, industrial, or residential property, your lender may request an ALTA survey before your loan is finalized. What is an ALTA, and what should you expect when ordering one?

In short, the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS) teamed up to create what we like to call “The Rolls-Royce” of surveys. ALTA surveys were created to protect your investments and assist with real estate transactions, so you have full knowledge of what you are purchasing. The costs associated with these surveys are typically higher, however it is more cost effective to learn the potential pitfalls and deal breakers in the beginning, rather than dealing with them after closing.

When a title company reviews a parcel of land for insurance purposes and new loans, they want to make sure your land can be used the way you intend to use it with no surprises. An ALTA survey is the most comprehensive survey to provide the due diligence for all parties involved in the transaction. An ALTA survey will include a survey of the boundary, existing conditions, buildings, improvements, encroachments and any additional existing features of the property such as utilities, zoning regulations, and flood zones. A title examiner will simultaneously review the land for any easements, leases, liens, right of ways and mortgages and compile this into a Title Commitment. All of this information is then presented with a 2D CAD drawing and map to display all of the elements that impact the property.

The surveyor’s role in ALTA surveys is to measure the property and set any missing boundary corners, collect the data needed in the field, and present the data in a clean and readable drawing or map. The surveyor becomes an “expert” on the property using 50-100 years’ worth of information and historical documentation on the land. All items in the provided Title Commitment are reviewed by the surveyor and verified on whether it applies to the property or not. This is then reviewed by all parties in the land transaction, and any decisions on the purchase can be reviewed.

Expectations on time frames for ALTA surveys can range from weeks to months depending on the complexity of the survey. Multiple parties are involved and will require coordination to review and discuss the results of the survey. Be sure to order your ALTA survey when you are ready to begin the next phase of planning your land acquisition.