Purchasing a new commercial property is a significant investment that involves careful consideration and due diligence. One of the most crucial steps in this process is obtaining a land survey that identifies exactly what you’re purchasing and any potential pitfalls like inaccurate recording of the property’s size, existing liens, etc. Though there are multiple types of surveys, an American Land Title Association (ALTA) survey is the best choice to obtain your investment safely.
In this blog, we’ll delve into the specific importance of an ALTA survey, explaining how it safeguards your interests and ensures a smooth and secure transaction. Whether you’re a seasoned investor or a first-time buyer, understanding the value of an ALTA survey is essential to making informed decisions in commercial real estate.
Revealing Comprehensive Data
An ALTA survey provides unparalleled detail compared to as-built surveys or boundary surveys, making it indispensable for commercial property transactions. While an as-built survey focuses on the physical structures and their placement on the land and a boundary survey is a type of land survey focused on property lines, these often overlook critical legal aspects. An ALTA survey, on the other hand, offers a comprehensive analysis that includes property boundaries, easements, rights-of-way and potential encroachments.
It also identifies any discrepancies between the current property layout and legal descriptions in the title. By highlighting these potential issues, an ALTA survey protects buyers from unexpected legal complications and financial liabilities, ensuring a clear understanding of the property's status and safeguarding their investment.
Flood Issues and More
An ALTA survey is essential for revealing critical details about a commercial property that might otherwise go unnoticed. It meticulously documents past physical improvements, ensuring that any additions or modifications are accurately recorded and compliant with legal standards. By identifying encroachments, it alerts property owners to potential disputes with neighboring properties, which could affect future development plans. The survey also assesses whether the property lies within a floodplain, highlighting the need for flood insurance to protect against water damage risks.
Additionally, an ALTA survey provides valuable information regarding parking availability and the layout of adjoining properties, helping owners understand the broader context of their investment. This comprehensive insight is invaluable for making informed decisions and ensuring long-term security and compliance.
Conclusion
In commercial property purchases, an American Land Title Association (ALTA) survey is not just a formality but a fundamental necessity. Its detailed analysis offers unparalleled protection for buyers. By uncovering critical issues that as-built and land surveys might miss, an ALTA survey ensures you have a clear and comprehensive understanding of your investment, helping you avoid legal disputes and unforeseen expenses. Whether you are a seasoned investor or new to commercial real estate, the insights provided by an ALTA survey are invaluable for making informed and confident decisions. As you navigate the complexities of commercial property transactions, having an ALTA survey in your toolkit is essential for safeguarding your investment and ensuring a smooth and secure purchase process.
Sun Title is your go-to guide for commercial real estate titles and support. Contact the Sun Title Commercial Team to get started.
