Should I Share My Survey With the Buyer?

Sharing Your Property Survey With a Buyer

Selling your home involves many documents. You gather utility bills, tax statements, and renovation permits. One document often causes confusion: the property survey. Many sellers ask whether they should share their survey with the buyer. This question is important because the answer affects your sale. Sharing it seems like a helpful, transparent act. It can speed up the process and save the buyer money. However, providing a survey, especially an old one, can introduce risks you might not expect. It could contain outdated information or reveal a problem you did not know existed.

This decision requires careful thought. A property survey, often called a Surveyor’s Real Property Report (SRPR), is a legal map of your property. It details boundary lines, the location of buildings, fences, and any easements or encroachments. Understanding the potential benefits and the serious liabilities is key. This post explores the factors you must consider. We will examine the purpose of a survey, the pros and cons of sharing it, and the safer alternatives available. This information helps you make a choice that protects your interests and supports a smooth real estate transaction.

The Purpose of a Surveyor’s Real Property Report

A Surveyor’s Real Property Report (SRPR) is more than just a drawing of your land. It is a professional document created by a licensed surveyor. This report provides a precise, legally recognized snapshot of your property at a specific moment in time. It clearly marks the official boundaries of your lot. It also shows the exact location of all significant structures, including your house, garage, and any sheds. The report maps out visible features like fences, driveways, and hedges, indicating if they sit on the property line or encroach on a neighbour’s land.

This document is vital for a real estate transaction. For a buyer, it confirms they are getting exactly what they paid for. It reveals hidden issues, such as a neighbour’s fence being on their new property or a deck built too close to the property line. For lenders, a current survey provides assurance that the property is a sound investment without legal complications. An old survey may not reflect the property’s current state. A new fence, a deck addition, or a removed shed can make an old survey inaccurate, which is where the risk for a seller begins.

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The Risks and Potential Liabilities

While sharing your survey seems helpful, it carries significant risks for you as the seller. The main concern is liability. If you provide a survey, the buyer may assume it is completely accurate. However, an old survey might not show a new deck, a relocated fence, or a new shed. If the buyer discovers a discrepancy after the sale, they could hold you legally responsible for providing misleading information. You might have implicitly warranted the survey’s accuracy just by handing it over, even if you did not intend to.

Another risk is that the survey could reveal a problem you were unaware of. For instance, it might show that your shed is partially on your neighbour’s property or that your new sunroom violates a municipal setback bylaw. Discovering such an issue can complicate or even terminate a potential sale. The buyer could use this information to negotiate a lower price, demand you fix the problem before closing, or simply walk away from the deal. The surveyor who originally prepared the report is only liable to the person who commissioned it—you. They have no professional liability to the new buyer, leaving you to face any potential claims alone.

Your Agreement of Purchase and Sale

The Agreement of Purchase and Sale is the central legal document in your transaction. In many standard real estate forms, there is a specific clause about property surveys. This clause often requires the seller to provide the buyer with any existing survey that the seller has. It is very important to read this section carefully with your real estate agent and lawyer. The wording of this clause can either protect you or expose you to risk. Many agreements are designed to reduce your liability.

A well-written clause will state that the seller provides the survey but does not warrant its accuracy or completeness. This disclaimer is your key protection. It signals to the buyer that the survey is being provided for informational purposes only. It also suggests the buyer should not rely solely on it to make their decisions. The disclaimer clarifies that the document is old and may not reflect the property’s current state. Without this specific language, providing the survey could be interpreted as a guarantee of its correctness, opening you up to future legal disputes if an error is found later.

Safer Alternatives for You and the Buyer

If you are worried about the risks of sharing an old survey, you have excellent alternatives. These options protect you while still giving the buyer the assurance they need to proceed with the purchase.

• Purchase Title Insurance

  This is the most common solution. Title insurance is a policy that protects the buyer and lender from a range of property ownership issues. These issues include title fraud, zoning violations, and boundary problems that an old survey might reveal. The buyer’s lawyer almost always recommends it. It is a one-time fee paid at closing that provides lasting protection. By relying on title insurance, the need for a new survey is often eliminated, solving the problem for everyone.

• Commission a New Survey

  The most direct approach is to get a new Surveyor’s Real Property Report. While this costs money, it provides a perfectly accurate and current picture of the property. A new survey eliminates all doubt and liability associated with an outdated one. You can negotiate the cost with the buyer. Some sellers pay for it to make their property more attractive, while others split the cost with the buyer as part of the final deal.

• Provide a Seller’s Declaration

  You can sign a legal document called a statutory declaration. In it, you swear that you have made no changes to the property’s boundaries, fences, or structures since the date of the old survey. This adds a layer of assurance for the buyer. However, this option still carries risk. If you have forgotten about a small change or are mistaken, your declaration would be false, making you liable.

Conclusion

The choice to share your survey depends on your specific situation. There is no universal right or wrong answer. You must weigh the benefits of transparency and convenience against the real legal and financial risks. Consider the age of your survey. A one-year-old survey for a property with no changes is very different from a 20-year-old survey for a home that has been extensively renovated. Review your Agreement of Purchase and Sale carefully to understand your contractual obligations and the protections built into it.

You should not make this decision alone. Your real estate team provides the expertise you need. Your real estate agent offers insight into market expectations and negotiation strategies. They know what buyers in your area typically expect and can help you position your property effectively. Your real estate lawyer provides the crucial legal advice. They will analyze the risks, review your contract, and explain the potential liabilities in detail. By consulting with both of these professionals, you can make a confident, informed decision that aligns with your best interests.