Question: What Is the Role of Property Surveys in Real Estate Transactions?
Answer: A property survey officially defines a property’s legal boundaries, locates all structures, and identifies potential issues like encroachments or easements. This vital document protects the buyer’s investment, satisfies lender requirements, and helps prevent future legal disputes with neighbours over property lines.
The Role of Property Surveys in Home Purchases
Buying a home is an exciting milestone. You tour properties, imagine your future, and finally make an offer. During this process, you will encounter many documents and procedures. One critical document is the property survey. Many people wonder what is the role of property surveys in real estate transactions. This document is a detailed map of a property that provides certainty and protection for your investment. It clearly defines what you own, preventing future disputes and surprises that could cost you thousands.
A survey is much more than a simple sketch of the land. A provincially licensed surveyor creates this legal document. It shows the exact boundaries, the location of buildings, and any restrictions that affect the property. Understanding this document helps you confirm that the property you are buying matches its description. It reveals potential problems before you finalize the purchase. This information empowers you to make a confident and informed decision about what is likely the largest purchase of your life.
Understanding the Blueprint of Your Property
A property survey serves as the official blueprint of your land and its improvements. A licensed land surveyor prepares this document, which provides a precise, legally recognized depiction of a property at a specific point in time. The most common type used in a home purchase is the Surveyor’s Real Property Report (SRPR). This report is a two-part document. It contains a detailed plan or map and a written report that explains the findings.
The plan visually represents the property. It shows the exact dimensions and boundaries of the lot. It also pinpoints the location of all structures, such as the house, garage, sheds, and fences. The survey identifies any easements, which are rights given to others to use a part of your property for a specific purpose, like utility lines. It also shows rights-of-way that may allow neighbours or the public to cross your land. The written report confirms that the property complies with municipal bylaws, such as setback requirements, and highlights any issues discovered during the survey process.
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Choosing the Right Survey for Your Needs
Different situations call for different types of property surveys. Understanding your options helps you request the correct one for your real estate transaction. A knowledgeable real estate agent can guide you, but knowing the basics is helpful. The survey you need depends on the property’s characteristics and your future plans for it. Each type provides specific information tailored to a particular purpose, from a standard home purchase to a major construction project.
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Surveyor’s Real Property Report (SRPR)
This is the standard and most comprehensive survey for residential real estate transactions. An SRPR shows the property boundaries and locates all visible improvements, including buildings, fences, and driveways. It also identifies any easements or encroachments. The surveyor’s written report confirms whether the property complies with local zoning bylaws. Lenders and title insurers often require an up-to-date SRPR to finalize a mortgage and provide full insurance coverage.
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Boundary Survey
A boundary survey, sometimes called a boundary retracement survey, focuses on one primary goal: to accurately establish the property lines. A surveyor researches historical records and performs fieldwork to place official markers at the property corners. This type of survey is useful if you are in a dispute with a neighbour over a boundary line or if you plan to install a new fence. It does not typically show the location of all buildings or other improvements.
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Topographic Survey
A topographic survey maps the land’s contours and physical features. It shows elevation changes, slopes, trees, ditches, and other natural or human-made elements. Engineers and architects use this survey as a base map for designing new buildings, additions, or major landscaping projects. It is essential for planning proper drainage and ensuring new structures are built on stable ground. While not always necessary for a simple purchase, it is critical for development.
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A Seller’s Perspective on Property Surveys
Sellers also benefit greatly from having a current property survey. While the buyer often initiates the request for a survey, providing one proactively can make your property more appealing and streamline the sales process. A recent Surveyor’s Real Property Report (SRPR) acts as a sign of transparency. It shows potential buyers that you have a clear understanding of your property and that there are no hidden issues related to boundaries, encroachments, or zoning violations.
Many sellers possess an older survey from when they purchased the home. While this document is still valuable, it may not be sufficient for today’s transaction. An old survey does not reflect any changes made to the property, such as a new fence, a shed, an addition, or a deck. Lenders and title insurance companies almost always prefer a new or updated survey to ensure it accurately represents the property’s current state. Investing in a new survey before listing your home can prevent delays during closing and eliminate a common point of negotiation, helping you secure a faster, smoother sale.
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Surveys and Your Title Insurance Policy
Title insurance is a key component of any real estate transaction. It protects you and your lender from financial loss due to defects in the property’s title. These defects can include things like outstanding liens, unresolved ownership claims, or fraud. The relationship between your property survey and your title insurance policy is very important. The completeness of your title insurance coverage can depend directly on whether you provide the insurer with a current and accurate survey.
Without a recent survey, a title insurance company cannot verify the property’s physical condition and boundaries. As a result, the policy will typically include a “survey exception.” This exception means the insurance does not cover any problems that a survey would have uncovered. For example, if you later discover your neighbour’s garage is on your land, your title insurance will not cover the legal costs to resolve the dispute. By providing a current Surveyor’s Real Property Report, you can often have this exception removed, giving you more complete and valuable protection.
The Cost and Process of Obtaining a Survey
The question of who pays for a new property survey often arises during negotiations. There is no set rule. The responsibility can fall on the buyer, the seller, or the cost can be shared. Often, if a buyer requires a new survey for their lender or for their own peace of mind, they will cover the cost. However, a seller might offer to provide a new survey to make their listing more attractive or to address a known issue. This point is negotiable in the Agreement of Purchase and Sale.
To get a survey, you must hire a provincially licensed land surveyor. Your real estate agent or lawyer can typically recommend reputable professionals. The cost of a survey varies based on several factors. These include the property’s size and complexity, its location, the terrain’s difficulty, and how well-documented the property’s history is. An urban lot is generally less expensive to survey than a large, rural property with irregular boundaries. It is wise to obtain a few quotes to understand the expected cost for your specific property.
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A Foundation for a Secure Investment
A property survey is far more than a piece of paper in your closing documents. It is a fundamental tool that provides clarity and security. For buyers, it verifies the details of their purchase and protects them from unforeseen problems and future legal headaches. It ensures the land and structures you believe you are buying are exactly what you will legally own. For sellers, providing a current survey fosters trust and can lead to a quicker and more seamless transaction by removing potential obstacles before they arise.
Ultimately, the survey establishes a clear and legally binding record of a property’s physical state. It defines boundaries, confirms compliance with regulations, and supports clean title insurance. Engaging with this process ensures that all parties have a shared, accurate understanding of the property. Discussing the need for a survey with your real estate professional is a crucial step. It helps you protect your investment and move forward with confidence in your new home.
