An ALTA survey often shows details that lenders care about. They check this before approving a commercial loan. This kind of survey maps the property in close detail. It shows buildings, driveways, easements, and other features. It shows them exactly as they sit on the ground today. Lenders use this information to spot risks. They want to catch problems before funding a deal. A few common findings can slow down approval if nobody catches them early. Knowing these red flags can help buyers move through the loan process faster.

An ALTA Survey May Show Buildings Near Property Lines

An ALTA survey can show where a building, sign, or parking area sits. Sometimes one of these sits close to a property line. A structure might cross the line by just a few inches. Sometimes it sits right at the edge with no room to spare. Lenders often want a closer look when this happens. A structure too close to a boundary can raise questions. These questions often involve zoning rules or future use. This kind of finding does not always stop a loan. It usually slows down the review instead.

Shared Driveways Can Create Questions

An ALTA survey may uncover a driveway or entrance used by more than one property. This kind of shared access often works fine day to day. It can still raise questions during a loan review. A lender wants to know one thing. Is the right to use that driveway actually recorded? Commercial buyers should understand these shared areas before closing. A shared driveway without clear recorded rights can cause a problem. It can hold up financing until the access gets sorted out.

Easements Found During an ALTA Survey Can Affect Plans

An ALTA survey can reveal utility lines, access rights, or other easements. These often cross the property in different ways. Some of these easements sit underground and stay out of sight. Others cut across open land that a buyer planned to use. These easements may limit how certain parts of the property get used. They may also limit what gets built there. A lender wants to know about any easement that could affect future plans. Finding this information early helps buyers plan around it. It helps them avoid a surprise later.

Site Features Do Not Always Match the Records

Fences, buildings, and paved areas do not always match what the legal documents describe. A fence might sit in a different spot than the recorded line. A parking area might extend past where the deed says it should stop. An ALTA survey helps spot these differences. It catches them before they become bigger problems. Lenders take note when site conditions and paperwork disagree. Catching this gap early gives buyers a chance to fix it. It helps them avoid delays once the loan is already moving forward.

Finding Problems Early Can Help Avoid Loan Delays

Ordering an ALTA survey early gives buyers more time. They can review and solve any issues that come up. A boundary question or easement concern is much easier to handle early. It gets harder once the loan is far along. Waiting until the last minute leaves little room to fix anything. Ordering the survey early keeps the loan process moving toward closing. It also gives buyers, lenders, and title companies more time. They can work through any concerns together.

Frequently Asked Questions

What is an ALTA survey?

An ALTA survey is a detailed survey. It supports many commercial property purchases and loans. It maps the boundaries, buildings, and other features on the property.

Why do lenders ask for an ALTA survey?

Lenders use an ALTA survey to learn more about the property. They check it for possible concerns. This helps lenders understand the risk before approving a loan.

Can an ALTA survey uncover problems?

Yes, an ALTA survey may reveal easements, access issues, or differences between records and site features. These findings can affect how a lender views the property. Catching them early gives buyers time to respond.

Who usually orders an ALTA survey?

Commercial property buyers, lenders, and title companies often request an ALTA survey. Each group uses the survey for a different reason. Together, they rely on it to move the loan process forward.

When should an ALTA survey be ordered?

It is best to order an ALTA survey early. This gives buyers time to review any questions before closing. Ordering early keeps the loan process on track.