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Due Diligence

ALTA Surveys and Title Review in Commercial Real Estate

An ALTA survey draws the land and the improvements. A title commitment lists the rights and the exceptions. Together they show whether you can use the property the way the contract assumes.

Bryan Robinson, Professional Sales Agent, Licensed in Nebraska, NHS Commercial5 min read

Quick answer

Review boundaries, buildings, easements, access, and encroachments on the survey, and read every exception on the title commitment. A surveyor speaks to the map. An attorney speaks to the title. Bryan coordinates the commercial questions around both.

Key takeaways

  1. An ALTA survey is a land-title survey prepared to a published standard, with a scope the parties select.
  2. A title commitment is an offer to insure, not the policy itself.
  3. A driveway you can see is not the same thing as a recorded right of access.
  4. Surveyors and attorneys provide the technical opinions. Bryan keeps the commercial questions moving.
Graded commercial land at a road corner, with a concrete monument in the foreground.

What the survey is trying to show

ALTA refers to the American Land Title Association. In current practice the drawing is usually an ALTA/NSPS land title survey, prepared to standards used by surveyors and title companies. The map locates the parcel boundaries and the improvements on them: buildings, pavement, utilities that were observed, and other features the scope includes.

Optional items are often chosen from a table attached to the standard. A lender, a buyer, or a title company may ask for some of them and ignore others. There is no single survey that fits every warehouse and every office building. The surveyor, the title company, the lender, and your attorney should agree on the scope before the fieldwork is treated as final.

Questions the map and the commitment answer differently
TopicSurveyTitle commitment
BoundariesWhere the lines were measuredThe legal description being insured
ImprovementsWhere buildings and pavement sitWhether those improvements are excepted or insured
EasementsWhere a recorded easement plots on the groundThe document that created the easement
AccessThe physical drive and the street it meetsWhether a legal access right is insured
EncroachmentsWhat crosses a line or an easementHow the policy will treat that crossing

The title commitment is not the policy

A title commitment is the title company’s offer to issue a policy if stated requirements are met. Requirements are the items to clear before closing: releases, entity documents, a survey, or a deed from the right owner. Exceptions are the matters the policy will not cover unless they are removed or specifically insured. Read both lists. A clean-looking building can sit under an exception that limits a driveway, a parking area, or a future addition.

The policy comes later, after closing, if the requirements were satisfied. Buyers who only skim the first page miss the exceptions, which is where commercial problems usually live. Your attorney should explain what an exception means for this parcel. This article will not interpret one. Bryan can tell you whether an exception collides with the way you planned to use or sell the property. That is a commercial observation, not a legal opinion.

Easements, access, and encroachments

An easement is a right someone else may have to use part of the land, often for access or utilities. Plotting it on the survey shows whether it runs through a building, a truck court, or a parking row you counted on. An encroachment is an improvement that crosses a boundary or an easement: a fence, a canopy, a stoop, a neighbor’s pavement. Some are trivial. Some block a loan or a use. The surveyor identifies the location. The attorney and the title company speak to the consequence.

Access deserves its own pass. A curb cut you drove through may be a license, a shared drive, or a right that does not reach a public street on paper. If the business depends on trucks, walk the route a truck would actually use and compare it with the legal access the commitment will insure. Industrial buyers should do this before they fall in love with the door count.

Who orders the work

The contract should say who orders the survey, who pays, and what form is required. Lenders often have their own survey standards. A buyer who orders a drawing the lender will not accept has paid once and will pay again. Ask the lender early which standard the loan requires.

Title is ordered through a title company, often the one that will close the sale. The commitment should be read against the survey, not in a separate pile. When the legal description, the drawing, and the contract describe three slightly different parcels, stop and reconcile them. That reconciliation is attorney and surveyor work. The buy page is where this fits the rest of the purchase.

Questions people ask

Do I need a new ALTA survey for every sale?

Not by a rule on this page. A lender, a title company, or a buyer may require a current survey. An older drawing can still be the right place to start. Your contract and your lender decide.

Can Bryan tell me an easement is acceptable?

He can tell you whether the easement gets in the way of the use you described. An attorney should tell you what the document allows. A surveyor should tell you where it sits. Those are different statements.

What is the difference between a commitment and a policy?

The commitment is the offer, with requirements and exceptions. The policy is the insurance issued after those requirements are met. Review the commitment before you close, while there is still time to object.

What if the survey shows an encroachment?

Do not ignore it and do not guess the remedy. Ask the surveyor to confirm the location, and ask your attorney and the title company what it means for coverage and for the closing. The contract’s objection process is the path.

Written by Bryan Robinson, a Professional Sales Agent with NHS Commercial, licensed in nebraska.

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NHS Commercial

Bryan Robinson

NHS Commercial

Professional Sales Agent | Licensed in Nebraska