Survey Says?

I've recently received questions from real estate agents regarding surveys. As if sensing my desire to prepare a brief blog post on the different types and uses of surveys in this region, the Maryland Land Title Association published their Summer 2009 Edition of The MLTA Commitment featuring, yep, you guessed it...surveys! So, with some help from that newsletter, here is what a real estate agent or loan professional needs to know about surveys. We'll address the three major types in ascending order of cost and complexity.

Location Drawings: A Location Drawing serves one primary purpose: To allow the title agent to remove the survey exception from the loan policy. A lender wants a clean title policy. A title policy has an exception for matters that a survey would reveal. Solution? Get a Location Drawing done which allows us as the title company to remove that exception. A Location Drawing simply shows the outline of the property along with the approximate location of the house and improvements. It does not show the actual boundary lines or show corner markers or monuments. It typically costs anywhere from $150 to $500 depending on the region and vendor. A Location Drawing is typically required for all residential purchases of real estate in MD and VA with a few notable exceptions (including condominiums, unimproved lots, and where the lender agrees to a "no-survey" program).

Boundary Surveys: The more mature, sophisticated cousin of the Location Drawing is the Boundary Survey. The Boundary Survey locates the exact boundaries as well as corner markers and monuments. These can cost $750 up to and exceeding $2,000 because of the field research required. So why order one? If the buyer or owner of the property is contemplating an improvement or subdivision, or has reason to believe some issue exists that such a survey would reveal, they may choose to get a Boundary Survey. Once the Boundary Survey is done, the surveyor can very easily create a Location Drawing from that which could then be used to remove the survey exception from the loan policy.

ALTA/ACSM Survey: The residential real estate agent will rarely see an ALTA/ACSM Survey. These are reserved for commercial properties, and are the most sophisticated and detailed (not to mention expensive) of the survey types. An ALTA/ACSM surveyor will likely do several "versions" of the survey, and will often depend on research done by the title examiner to locate (or eliminate) easements, reservations, etc.

I'm a real estate agent. What do I do with this info?

1. Let your buyers know they will likely be required to purchase a Location Drawing costing $150-$500, which the title company will order for them.

2. Ask your title company for a copy of the survey as soon as they receive it so you have the opportunity to review. An issue may not be fatal to the passing of clean title, but may need to be excepted on the title policies.

3. If you believe there is an issue on the property, or if your buyer is planning on adding fences, garages, barns, driveways, etc., talk to your title company or attorney about the benefits of a Boundary Survey.


SOURCE: www.MDLTA.org

Hunt Valley Phones are Back Up

Our phone lines are back up. Thank you for your patience!

Hunt Valley Phones Down

Our phone lines for our Hunt Valley headquarters are currently down. Computer and fax communication is unaffected, you can still email and fax us.

Should you need to get a hold of us for a pending file, please call your TSR, Dan Coleman (410-382-7491) or Harry Yazbek (703-946-4470).

I will continue to update people here as to service recovery.

Saying 'no' (a Seth Godin riff)

Seth Godin posted a brief update to his blog today called Saying 'no'. As with all his posts, I really enjoyed the brevity and succinctness of it. In short, says Godin, you will have longer term success when you say 'no' to requests that don't make sense for you to do.

Agree in part, dissent in part.

What if - instead of saying no - we propose a scenario or option that works?

- Instead of saying no to a listing, agree to take it but only with a more reasonable price and and agreement to repair or stage?

- Instead of saying no to a settlement because of title issues, spend some time creating good commitment requirements that put the ball in the seller's court to clear?

- Instead of saying no to closing after hours in another jurisdiction, agree to handle it for an increased fee. (Assuming licensing requirements are met, of course!)

There may come a time to outright say 'no', but is it worth giving the deal a chance first?

Happy Memorial Day

From everyone here at Mid-Atlantic Settlement Services, have a happy and safe Memorial Day. We thank and salute those who have given service to our country.

For a detailed reminder on what Memorial Day is all about, click here. (I always find it helpful to read the history on holidays such as this -- a good reminder that it's more than merely a day off to enjoy the beach!)

Where in the World Wide Web are we?

In addition to this blog, we have popped little internet tents up in other locations as well. Please come see us, join us, follow us, link in with us, etc.

Our Web page --> www.MASettlement.com

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Our Twitter page --> www.Twitter.com/MASettlement

Release Red Flags

We recently received a communication from First American Title adding a few new procedures to our title search and review checklist. These changes center around a new and disturbing trend of forged and suspicious satisfactions.

These procedure changes call us to:

1. More closely scrutinize satisfactions/releases recorded 24-months prior to the search;

2. Red flag any releases not recorded immediately with or shortly after documents evidencing a sale or new mortgage;

3. Verify MERS certificates of satisfaction at www.mers-servicerid.org/sis/;

4. More closely scrutinize assignments prior to a questionable certificate of satisfaction; and

5. Place questionable satisfactions on the Schedule B-2 on the commitment with a corresponding Schedule B-1 requirement for verification of the validity of the satisfaction.

Why am I telling you this, and how does this affect you as the real estate agent, broker or loan officer?

Your title company will likely be taking these extra precautions, and questioning satisfactions/releases more closely. Should there be a delay because of this issue, or should the title company be seeking additional confirmation from a lender, now you will have an explanation as to why.