What’s your line? When a buyer goes to look at a home,
sometimes it seems very obvious where the property lines (boundaries) are. But
what you see may not be what you get. Property boundaries don’t always coincide
with fences nor are they always where you think that they are. In fact, we’ve
seen cases where even a large pool was half on a neighbor’s property; no one
was aware until a survey was performed.
When we make an offer on a property, we usually ask the
Seller for a survey. If the Seller does not have a survey, the usual course to
order a survey at closing – but this is not the prudent course. The best thing
to do is order a survey long before, so if there are any issues they can be resolved
prior to closing or so that the Buyer can terminate if the issues are of great
concern and not fixable.
Typically you will want to have an inspection *first* and
then if there are no big issues with the inspection, order the survey. Since we
often have only a 7 to 10 day inspection period, that may not be long enough
for both to conclude. So insert a stipulation in the contract that says
something to this effect: “Seller must provide a survey, if Seller has ever had
one done, within 48 hours of binding agreement date. Buyer has the right to
order his/her own survey, whether or not Seller provides one. If Buyer’s survey
reveals any title, permitting, easement, or encroachment issues Buyer shall
provide said survey to Seller within 3 days of receipt and Seller shall have a
5 day opportunity to cure any deficiency. If Seller cannot cure, Buyer shall
have the option of terminating this Agreement at no penalty to Buyer.”
Why the mention of “permitting” issues above? Well, if
a structure or improvement encroaches on a neighbor’s property, it likely means
that the structure or improvement was not permitted with applicable
governmental authorities, which is another, potentially even bigger
issue. While encroachment issues have a two year statute of limitations,
permitting issues do not. This comes up most often with garages and other
structures on the edges of the property.
As with everything you purchase, be sure you know what you
are buying! One important aspect of this is knowing the boundaries of
your property through a survey. And as always, call the
Mary Anne Walser team when you or someone you know wants to buy or sell a
home!
