Survey Issues and Title Insurance

Survey Issues and Title Insurance

The title company has informed the buyer that there is a issue with the survey. What does this mean? What should your buyer do? Watch the video to find out.

TRANSCRIPT

Hello this is Deirdre Brown your  settlement agent serving Maryland, DC and Virginia. Today I want to talk to you about an issue that comes up normally about two weeks before settlement. When we get the survey back, a line-drawing survey  in most cases and it indicates that there is an issue with the survey. Maybe the front porch is a little bit beyond the property line. Maybe the driveway is in an easement. Maybe the fence is inside or outside of the property line. 

As a title company we will notify the parties ahead of time. We do not wait until settlement to talk to you about the survey issues. You will receive an email from us that states that there's a survey issue. We will send you a copy of the survey and it will be marked up showing what the issue is and the reason. We do this because when we issue title insurance and are aware of a survey issue that means that the survey issue whatever that may be will be an exception to the policy and the buyer will need to have to sign an affidavit at settlement stating that we've made you aware of this exception and that you understand that it's not covered in your policy. Not being covered in  your title insurance  policy means that if there's ever a claim against title based on this exception, the survey issue,  your porch is too far over, your fence is too far over, this kind of thing, it is not covered in your lender's or owner's title insurance policy.

The question that I normally get from the buyer is should they move forward with the transaction.  As the settlement agent I'm a neutral third party so I can't tell you to move forward or not. What I can tell you is that we're just giving you this information so that you can make an informed decision.

If you have more questions you can reach out to me at info@closewithdee.com

 

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