Question: Why Are Surveys Sometimes Problematic?
Answer: Surveys are sometimes problematic because outdated surveys often fail to show current structures, fences, or encroachments, leading to costly boundary disputes. They may also uncover unknown easements or not meet modern legal or lender standards, complicating transactions and creating unexpected legal issues for the property owner.
The Challenges with Property Surveys
A property survey is a vital document in a real estate transaction. It acts as a map of a property, showing its precise boundaries, dimensions, and the location of buildings, fences, and other structures. Homebuyers often review a survey to understand exactly what they are purchasing. This document can prevent future disputes with neighbours and confirm the property’s legal limits. Despite its importance, surveys can sometimes be problematic during the buying or selling process. An existing survey might be old, or it may reveal an issue that complicates the deal. Understanding these potential challenges helps you make informed decisions and protects your investment for years to come.
The Problem with Old Surveys
Many sellers provide a property survey they received when they bought the home. This document could be decades old. A property’s landscape changes over time. The previous owner might have built a new deck, erected a shed, or replaced a fence. An old survey will not show these new additions. This discrepancy creates a significant information gap for the buyer. You might purchase a home believing everything is in order, only to discover a structure violates a municipal by-law.
Relying on an outdated survey is a common risk. For example, a fence that appears to mark the property line might actually be several feet inside your neighbour’s land. The old survey would not show this encroachment. You would only discover the problem when your new neighbour decides to build something and gets a new survey. This situation can lead to legal disputes and unexpected costs. A new survey, called a Surveyor’s Real Property Report (SRPR), provides a current and accurate picture of the property. This protects you from the secrets an old document might hide.
Click this link to learn more about the value of your property
Related Article: Can You Skip the Survey When Buying a House?
Related Article: What Type of Information Does a Survey Provide?
Boundary and Encroachment Issues
One of a survey’s primary functions is to identify the exact location of property boundaries. This is where many problems surface. A survey can reveal that a structure is encroaching on another property. An encroachment happens when a building, fence, or driveway extends beyond the legal property line. For example, your dream home’s beautiful garage might actually sit six inches on the neighbour’s land. This discovery immediately creates a complication for the sale.
Once an encroachment is found, it must be addressed. Solutions can range from simple to very difficult. You might negotiate an easement with the neighbour, or you may need to move the encroaching structure. These negotiations can delay closing and add legal fees to the transaction. In some cases, a buyer might walk away from the deal altogether. This is why a survey can feel problematic; it brings hidden conflicts to light. However, it is always better to know about these issues before you buy the property, not after.
How Title Insurance Interacts with Surveys
In Ontario, many real estate deals close without a new survey. Instead, buyers and lenders rely on title insurance. Title insurance is a policy that protects a homeowner and lender from losses related to the property’s title or ownership. It can cover many issues that a survey might reveal, such as an existing fence encroachment or a fraudulent title transfer. This makes the transaction process faster and often cheaper than ordering a new survey.
However, title insurance is not a substitute for a survey. Title insurance is a reactive tool; it offers financial compensation after a covered problem arises. It does not provide information to prevent problems. For example, title insurance might pay for legal costs if your neighbour disputes a boundary. It will not show you where to build a new fence to avoid that dispute in the first place. A survey is a proactive tool. It gives you precise information about your property. You can then make confident decisions about future projects like pools, additions, or landscaping.
Surveys and Municipal Compliance
Property surveys play a critical role in verifying that a property complies with local municipal by-laws. Each municipality has specific zoning rules that dictate how land can be used. These rules include setback requirements, which define the minimum distance a building must be from the property lines, roads, or bodies of water. A survey accurately shows the location of all structures on the property. This allows you or your lawyer to check if they meet the current setback rules.
An old survey is particularly risky in this context. A previous owner may have built an addition or a deck without obtaining the proper permits. The new structure might violate setback by-laws. The old survey would not show this non-compliant addition. If you buy the property, the municipality could later discover the violation and issue an order. This order might require you to modify or even tear down the structure at your own expense. A new survey protects you by revealing these potential compliance issues before you finalize the purchase.
Your Best Path Forward
Property surveys can certainly introduce challenges into a real estate transaction. They can reveal that an old document is inaccurate, uncover a frustrating boundary dispute with a neighbour, or show that a beloved garden shed is actually on municipal land. These revelations can feel like setbacks. They add stress and potential costs to the home-buying process. The information a survey provides can sometimes complicate negotiations and force difficult decisions.
However, it is essential to view the survey not as the problem, but as the tool that reveals existing problems. Knowing about an encroachment or a by-law violation before you buy is always better than discovering it years later. This knowledge gives you power. You can negotiate with the seller to fix the issue, ask for a price reduction, or decide to walk away from a property with too many risks. A clear and current survey offers peace of mind. It confirms you are getting exactly what you paid for and helps you plan your future with confidence. Always discuss your survey options with your real estate professional and lawyer.
