What Are the Pros and Cons of Surveys?

The Pros and Cons of a Property Survey

You found the perfect house. The inspection went well, and you arranged your financing. Now, your lawyer asks if you want a property survey. This document might seem like another piece of paperwork in a large pile. You may even wonder what are the pros and cons of surveys. Understanding this topic helps you make an informed choice. A property survey is a detailed map of a piece of land. A licensed surveyor creates it. The document shows exact boundaries, the location of structures, and any registered easements or encroachments.

For many homebuyers, the decision to get a survey feels optional, especially if the seller provides an older one. However, an outdated survey may not show a new fence, a neighbour’s shed, or a recently added deck. These unrecorded changes can create serious legal and financial problems later. Weighing the upfront cost against the potential for future disputes is a critical step. This article will explore the benefits and drawbacks to help you protect your investment and ensure your peace of mind.

The Core Function of a Real Estate Survey

A property survey, often called a Surveyor’s Real Property Report (SRPR), is a certified document that provides a legal, graphical representation of a property. A provincially licensed surveyor prepares this report after conducting detailed measurements on-site. The report precisely maps out the dimensions and boundaries of the land. It also locates all physical improvements on the property. These improvements include the house, garage, driveway, fences, and swimming pools. The survey shows their exact position relative to the property lines.

This document serves a vital purpose. It confirms that the property’s physical state matches its legal description in the land registry system. The survey identifies any issues that could affect your ownership rights. For example, it reveals if a neighbour’s fence extends onto your property, an issue known as an encroachment. It also identifies easements, which are legal rights for others, like utility companies, to access a portion of your land. Understanding these details before you buy provides a clear picture of what you own and what limitations may exist.

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The Potential Downsides and Costs Involved

While a survey offers powerful protections, there are reasons why some buyers hesitate to get one. The decision often involves balancing cost, time, and the potential for uncovering problems. It is important to consider these drawbacks in the context of your specific property transaction. For a standard city lot in a well-established subdivision, the risk might seem lower than for a large, irregularly shaped rural property. Your real estate professional can help you assess the risk level and decide if the investment in a new survey is worthwhile for your situation.

• The Upfront Expense

  A new property survey is not free. The cost can range from $1,000 to $2,500 or more, depending on the property’s size, location, and complexity. This additional expense comes at a time when you are already paying for many other closing costs. Some buyers choose to forgo a new survey to save money, especially if the seller provides an older one.

• Potential for Closing Delays

  Ordering a new survey takes time. Surveyors are often busy, and it can take several weeks to schedule the fieldwork and receive the final report. This timeline can potentially delay your closing date. If you are on a tight schedule, you and your lawyer must order the survey as early as possible in the transaction process to avoid issues.

• Discovering Problems You Must Fix

  Sometimes, a survey uncovers an issue you would rather not know about. For example, it might reveal your dream home’s beautiful deck is partially on city property. This discovery creates a new problem that you must now address with the seller or the municipality. While it is better to know about these issues, the discovery can add stress and complication to the purchase.

When a Survey Becomes Essential

In some real estate scenarios, a survey moves from a “nice-to-have” to an absolute necessity. Certain property types and buyer intentions carry higher risks that only a survey can properly mitigate. In these cases, the cost and time involved are minimal compared to the potential for catastrophic legal and financial consequences. Proceeding without a survey in high-risk situations is a gamble on your largest asset. It exposes you to boundary disputes, building code violations, and title defects that could have been identified and resolved before closing the deal.

If you are purchasing a piece of vacant land with plans to build, a survey is critical. You need to know the exact boundaries, topography, and any easements before you design your home. Similarly, for rural or waterfront properties with irregular shapes or undefined boundaries, a survey is the only way to confirm what you are buying. It is also essential if you notice signs of a dispute, such as a fence that clearly deviates from what appears to be the property line. Finally, any plans for major construction or severance require a new survey as a prerequisite for municipal approval.

Title Insurance as a Common Alternative

Many homebuyers hear about title insurance as an alternative to getting a new survey. Title insurance is a policy that protects you and your lender from losses related to the property’s title or ownership. It covers a range of issues, including title fraud, unknown liens, and certain survey-related problems. For example, if you discover after closing that a neighbour’s garage encroaches on your property, your title insurance policy may cover the legal costs to resolve it or compensate you for the loss in property value.

However, it is vital to understand the difference. A survey is a preventative tool. It identifies problems before you buy the property, giving you a chance to walk away or negotiate a solution with the seller. Title insurance is a reactive tool. It does not fix the physical problem—it will not move the garage—but it offers financial protection after the problem is discovered. Many lenders will accept title insurance in place of a new survey because it protects their financial interest. The choice depends on your personal tolerance for risk and whether you prefer to identify problems upfront or insure against them later.

Conclusion

Deciding whether to get a property survey requires a careful evaluation of the property itself and your future plans for it. The choice is not always straightforward. A survey provides the highest level of certainty about your property’s boundaries and legal status. It is a proactive measure that can prevent very expensive and stressful disputes down the road. It empowers you with complete knowledge of what you own, which is the foundation of confident homeownership. This knowledge is especially crucial if you plan any construction or landscaping projects near the property lines.

On the other hand, the cost and potential for delays are valid concerns. Title insurance presents a viable alternative for managing risk, particularly for properties in established subdivisions with no visible boundary issues. The best approach is to have a detailed discussion with your real estate agent and your lawyer. They can help you assess the specific risks associated with the property you wish to buy. By considering their expert advice and your own comfort level with risk, you can make an informed decision that best protects your significant financial investment.