What is a Survey?
First let’s get the concept of what a survey is out of the way. Merriam-Webster defines survey as “2: to determine and delineate the form, extent, and position of (as a tract of land) by taking linear and angular measurements and by applying the principles of geometry and trigonometry.” Think of it as a map of your property marking property lines, easements, buildings, and setbacks. It shows the truest picture of what the layout of your land is and defines what you actually own when it comes to a piece of land.
Alright, So Who’s Paying For It?
Like most things in a Texas contract to purchase a one to four family residence, the cost of a survey is determined during the offer and negotiations on a new home. There are several checkboxes that determine who pays for the survey. On more than one occasion I have seen an experienced agent check a box incorrectly which later cost their client money.
Paragraph 6. C (2) and (3).
Let’s cover (2) and (3) first as they are very simple. The blank spot in both is for a number – the number of days after the effective date of the contract with which a buyer or seller must obtain a new survey. ; Pretty straightforward. (2) is for the buyer paying for the new survey and (3) is for the seller paying for the new survey (told you it was simple).
Paragraph 6. C (1).
This is where I see mistakes most often. This section lays out the rules and is typically used when a survey already exists on the home and both parties would prefer to use the older survey for some cost savings. Your agent and you (the buyer) should be looking at the existing survey though, if any major changes have been made (new pool, deck, shed, fence lines, etc.) you’ll want a new survey. This will help you when you sell the house someday and also make sure that you know the official layout of your land and home.
If both parties are going to try to use the older survey, caution should be taken by the agents (as I said I see a lot of mistakes made here). The first section of (1) is for the number of days for the seller to present the survey to the the buyer and the title company. The set of checkboxes who (buyer or seller) will pay for the survey if it is deemed not acceptable by the title company or the buyer’s lender. It clearly spells out that they (buyer or seller) must obtain it no later than three days prior to the closing date.
Here’s where the mistake is made. The section in bold (in the contract, bold below indicates my emphasis) that reads:
If Seller fails to furnish the existing survey or Affidavit within the time prescribed, Buyer shall obtain a new survey at Seller’s expense no later than 3 days prior to the Closing Date.
I have seen several times where we thought there was a survey and checked off C (1) and asked for the seller to pay for the survey. During negotiations, the seller’s agent suggested the buyer pay for the survey and we agreed. However, when we received the signed contract back, they had merely crossed off the seller’s checkbox and checked the buyer’s checkbox. This is fine, if the seller does indeed have a survey, but if they do not or forget to supply one in the prescribed time, the sentence in bold (described above) becomes the most important one in C (1). Because the seller failed to provide a survey (whether they didn’t have one or didn’t perform their duties in a timely manner), the buyer now has the right to order one and have it conducted – and the seller has to pay for it.
Your agent should be aware of this, but as I’ve said previously, I have seen it happen more than once (when I was on the buyer’s side of the transaction – it didn’t make the seller very happy with their agent, but my buyer loved me for it). Knowing your contracts can really pay off for your clients and really should be a no-brainer for an agent.
image courtesy of blmurch
Our buyer was to get a survey done in 30 days. They have less than two days left and haven’t done it. My agent claims he asks their agent what is going on and that their agent never gives him answers or gets back with him. Any ideas here???? Help!
FrancheskaF – It really depends on which box is checked and how the contract is worded. Assuming it’s a Texas contract, if box C(2) is checked (Buyer is to obtain new survey), then if they don’t get the survey done on time, they could be in breach of contract. The good news is that turn around times for surveys can be rather quick.
However, if box C(1) is checked and the buyer box is checked, there are other conditions that must be met. First, the seller must provide a survey within in the prescribed time (the blank at the beginning of the paragraph). If they do not, then the buyer may order a new survey and the seller must pay (the bold sentence in the paragraph). If the title company or lender rejects the old survey furnished by the seller, then the buyer must order a new one and it is paid for based upon which box is checked.
You should definitely speak with your agent and the title company. Often, title companies will order the survey on behalf on the buyer or seller based upon what is agreed upon in the contract. If your agent is having trouble with contacting the buyer’s agent, they should call the broker and try and get this resolved.
Good luck!
rockceptionist FrancheskaF
Yes, The buyer was to pay for the survey. Tomorrow is 30 days. I am going to call the title company.
Their agent gives no answers and basically is the broker. The real estate agency the buyer is using is small and it’s only a husband and wife team. My agent acts like he never gets answers from them.
It’s confusing not knowing if I need to really find a new home or not. Thanks!
The broker/agent small office can sometimes be frustrating when you can’t get a hold of anyone. I know it can be confusing, particularly so close to the finish line. Hang in there and hopefully things will come together and everything will be resolved for you.
I didn’t realize that land surveying was used to determine property lines. Apparently I need to find a surveyor to solve a property line dispute on my property. My neighbor keeps land grabbing and I’m starting to get fed up. Hopefully a land surveyor will help us resolve this issue. [Self Promoting Link Removed]
This is a surprisingly complicated process! I never realized that the survey could be charged to the client—I’ve never had that happen. I’m in Arizona though so perhaps the legislation is a bit different. Is there any reason why someone would need to pay for both? Thanks or sharing your tips! [Self Promoting Link Removed]
I didn’t realize getting a land survey was so important. My wife and I are in the process of buying a house right now. So far nothing has been said about getting a land survey. I am glad I read this article or I wouldn’t have considered it. I will call my local civil engineering office and see how much they will charge for a survey. [Self Promoting Link Removed]
I didn’t know that this was a requirement. I guess in the days of advanced construction and architecture, I wouldn’t have thought that land contours were so important. Just goes to show, you really do learn something new each and every day. [Self Promoting Link Removed]
I never knew this was such a big issue. When I’ve gone through experiences buying, selling, and building homes for myself and my family, I’ve gone through all of the steps I’ve been told to follow. I guess it’s important to do whatever we can to make things better, and to do what we’re supposed to. but it’s crazy to me how important some of these things are. I hope we see things like this have more recognition over the years. [Self Promoting Link Removed]
I cannot stress how important the initial survey of a new property is. Without this, it becomes almost impossible for you to get a good gauge on how much the house or villa is really worth. And heaven forbid that there are defects? You don’t want to be paying to repair a new place when you wouldn’t have bought it if you’d known!
What great information about who pays for the land surveys. This really is something that has been on my mind for a while so thank you for posting about this. Would this be more applied to public land or could it be applied to residential as well? Thank you again. [Self Promoting Link Removed]
I’d never thought twice about that line, but I can see how it becomes important in a case where the survey doesn’t exist. Most of the time people are willing to trust older surveys, but that’s not always the best route. I generally encourage people to get a new survey done when possible. [Self Promoting Link Removed]
Wow, that sure is a great question that I’m sure plenty of homeowners have been asking about. Well, is the land surveyor that one involved in all this? It seems like something to be wondering about as well. [Self Promoting Link Removed]
I need to get some land surveyed for buying my house. It’s a good idea to do it yourself so that you know it’s being done right. People can be sneaky sometimes, so if you hire someone, you know you can trust them. Thanks for all the great information! [Self Promoting Link Removed]
That’s good to note that you’ll want a new survey if there were major changes to the property. You don’t want old information affecting the future. I’ve been thinking about buying some property from a friend and I think I’ll want a survey.
This is some really good information about surveying. I liked that you pointed out that normally it is a seller who handles it. That is a good thing to be aware of when you need to sell a house.
If there is unimproved land being sold with a Plat that was donw 18 months ago and no improvements have been made, can this be considered as the survey or will an actual survey be needed? Our survey company that performed the plat indicated the survey would show the same information.
The plat and the survey are not the same thing, but when purchasing it boils down to a) what’s in the contract, b) what will the buyer accept, and c) what will the title company and lender accept.
This is some really good information about land surveying. I liked that you pointed out that you have three days prior to closing to decided who will pay for a land survey. That seems like a good thing for your real estate agents to handle for you.
Thanks for explaining how the seller has to pay for a survey if they fail to provide one. I was told to have a survey done on whatever property you are serious about buying. I’ll see what I can do about getting it done by talking to the agent.