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.

A title search and an ALTA Land Survey serve different purposes. One cannot replace the other. If you’re buying, selling, or financing commercial property, it’s important to know what each one does.

A title search reviews the property’s legal history through public records. It can uncover ownership records, easements, liens, and other legal issues tied to the property. An ALTA Land Survey focuses on the property itself. A surveyor visits the site to locate boundary lines, buildings, access points, and other physical features.

Together, a title search and an ALTA survey provide a more complete picture of a property before a real estate transaction closes.

What a Title Search Does

A title search is a review of public records. A title company or attorney looks through past property transfers to make sure ownership is clear and to find any legal issues connected to the property.

A title search may uncover unpaid taxes, liens, deed restrictions, ownership disputes, and recorded easements. This information is important because it helps buyers and lenders understand potential risks before closing.

However, a title search only looks at documents. It does not confirm what exists on the property today. If a fence was moved years ago or a utility line was installed without being properly recorded, those issues may not appear in public records.

What an ALTA Land Survey Does

An ALTA Land Survey involves fieldwork. A licensed surveyor visits the property to measure and document conditions on the ground. The survey identifies property boundaries, buildings, improvements, access points, and other features that could affect ownership or use of the property.

This process helps uncover issues that public records may miss. For example, a building may cross a property line, a driveway may be shared with a neighboring property, or a structure may be too close to a boundary line. These problems may not appear in legal documents, but they can still create challenges for property owners.

ALTA surveys follow national standards created by the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS). These standards help ensure surveys are accurate and consistent across the country.

Physical Issues a Survey Can Find

Some property issues can only be found by visiting the site.

One common problem is encroachment. This happens when a fence, building, or other structure crosses a property line. Even if it has existed for years, it can still create legal concerns.

Shared driveways are another example. Two neighboring properties may use the same driveway, but the arrangement may not be clearly documented. A survey helps identify these situations before a sale is completed.

Utility lines can also create issues. Power, water, gas, and communication lines often cross private property. Some have recorded easements, while others may not. A survey helps show where these features are located.

How an ALTA Survey Works With a Title Search

A title commitment lists legal matters that may affect the property, such as easements, restrictions, and rights of way. An ALTA survey helps show where those items are located on the property.

For example, a title commitment may mention a utility easement. The survey can help determine where that easement is located and whether it affects buildings, access, or future development plans.

This is one reason lenders often require ALTA surveys for commercial real estate transactions. The survey helps identify risks that may not be clear from public records alone.

Frequently Asked Questions

What can an ALTA Land Survey reveal that a title search cannot?

An ALTA Land Survey shows physical conditions on the property that may not appear in public records. This can include buildings or fences crossing property lines, shared driveways, utility features, and other site conditions that could affect ownership or property use.

Does a title search verify property boundary lines?

No. A title search reviews legal records and ownership history, but it does not confirm where boundary lines are located on the ground. A licensed surveyor must perform a survey to determine property boundaries.

Can an ALTA survey find unrecorded easements?

Sometimes. A surveyor may find signs of utility lines, access routes, or long-term property use that suggest an easement exists. While the survey does not create or prove an easement, it can help identify issues that need further review.

Why do lenders require an ALTA survey for commercial transactions?

Many lenders require an ALTA survey because it helps identify boundary issues, access concerns, and other property conditions that may affect the property’s value or use. It also helps title companies provide broader insurance coverage.

Can a title search replace an ALTA Land Survey?

No. A title search reviews legal records, while an ALTA Land Survey documents physical conditions on the property. Both provide important information and are often used together in commercial real estate transactions.

You’re close to closing on a commercial property. The price looks right. The location works. So your team moves fast, and before long, due diligence is almost over. But if nobody asked the right questions about the ALTA survey, you could be walking into a deal that costs far more than the purchase price.

An ALTA survey is not just a formality. It shows you exactly what you’re buying, what comes with it, and what problems are hiding in plain sight on the property. Most buyers assume their attorney or lender is handling the survey side of things. Some are right. Many aren’t.

So before that due diligence window closes, here are the questions you should be asking, and why each one matters.

Has the Survey Been Updated for This Transaction?

Sellers sometimes hand over an old survey and call it good. If that survey is three or more years old, it may not reflect current conditions. Buildings get added. Fences move. Utilities get rerouted. A dated survey can miss all of that.

Ask for the certification date. If it’s old, ask whether a new survey will be ordered before closing. Your lender likely requires a current one anyway, so confirm this early rather than scrambling at the end.

Which Table A Items Are Included?

ALTA surveys come with optional add-ons called Table A items. These are extra details a surveyor can include if requested. Things like parking counts, building setbacks, flood zone data, utility locations, and zoning info all fall under Table A.

The base survey doesn’t include all of them by default. So ask which Table A items were ordered. If flood zone classification wasn’t included and the property sits near a creek, that’s a problem you’ll wish you caught sooner. The same goes for setback lines if you plan to expand or renovate.

Go through the full Table A list with your surveyor and decide what you need based on how you plan to use the property.

Are There Any Encroachments on the Property?

An encroachment happens when something crosses the property line that shouldn’t. A neighbor’s fence might sit six inches inside your parcel. A utility shed might overlap into a public right-of-way. Even a small building overhang can create a legal headache.

Ask the surveyor directly: does the survey show any encroachments? If yes, find out who owns the offending structure and whether there’s a recorded agreement covering it. Some encroachments have been in place for decades with no documentation at all. That matters legally, and it matters for your title insurance.

What Easements Run Across the Property?

Easements give other people or companies the right to use part of your land for a specific reason. A utility company might have the right to run power lines across the back of the lot. A neighboring property might have a recorded access easement across your driveway.

Ask the surveyor to walk you through every easement shown on the survey. Then check those against the Schedule B-II exceptions in your title commitment. If the title company lists an easement but the survey doesn’t show its location, that’s a gap you need to close before you own the property.

Easements don’t always kill a deal, but they can limit what you’re able to build or change on the land. Know what you’re working with before you sign.

Do the Legal Description and Survey Match?

The legal description in your deed defines what you’re buying on paper. The survey defines what actually exists on the ground. Those two things should match perfectly. Sometimes they don’t.

Discrepancies between the deed and the survey can point to old errors, changes in ownership over time, or even a missing strip of land that never got included in the title chain. Ask your surveyor and your attorney to compare the two. If there’s a conflict, you want it resolved before closing, not after.

Is the Property in a Flood Zone?

This one surprises a lot of commercial buyers. Flood zone designation affects your insurance costs, your financing terms, and what you can build on the property. A site that looks perfectly dry can still carry a flood designation based on FEMA maps.

Table A Item 19 on an ALTA survey includes a flood zone determination. Make sure it was ordered. If the property falls in Zone A or AE, factor the flood insurance premium into your numbers before you finalize the deal.

Who Certified the Survey and Are They Licensed?

An ALTA survey must be certified by a licensed surveyor in the state where the property sits. The certification ties the surveyor professionally to the accuracy of the work. This protects you.

Check the certification block on the survey. Confirm the surveyor’s license number and verify it’s active with your state licensing board. It’s a quick check that tells you whether the person who signed off on your transaction was legally qualified to do so.

Does the Survey Meet the 2021 ALTA/NSPS Standards?

ALTA surveys follow a national set of standards jointly issued by the American Land Title Association and the National Society of Professional Surveyors. The current version is from 2021. If your survey was prepared under an older version, your title company or lender may not accept it.

Ask your surveyor which version the survey was prepared under. If it’s not the 2021 standards, find out why and whether it needs updating. This is a small detail that can cause a real delay if you catch it the morning of closing.

Ask Before the Clock Runs Out

Due diligence has a deadline. Once it passes, most of your leverage in the transaction goes with it. That’s why these questions need to happen early, not in the final hours before the period expires.

A good ALTA survey gives you the full picture of a property, but only if you know what to look for and what to ask. Work with a licensed land surveyor who has commercial experience, and loop in your attorney and title rep at the same time. They’re all looking at the same deal from different angles, and the survey connects them all.

Buying commercial real estate is a big move. The survey cost is a small fraction of the purchase price. Asking the right questions about it is free. Do both.

Frequently Asked Questions

What is an ALTA survey in commercial real estate?

An ALTA/NSPS Land Title Survey is a detailed survey that identifies property boundaries, easements, improvements, access points, and other matters affecting ownership and title insurance for commercial properties.

Why should commercial buyers review ALTA survey questions before due diligence ends?

Reviewing key questions early allows buyers to identify title defects, encroachments, access issues, and development restrictions while they still have time to negotiate or address problems.

What issues can an ALTA survey uncover?

An ALTA survey can reveal boundary discrepancies, encroachments, easements, rights of way, utility locations, access concerns, and other matters that may affect property ownership or intended use.

Does an old ALTA survey need to be updated before closing?

Not always, but many lenders and title companies prefer or require a current survey. Older surveys may not reflect new improvements, relocated utilities, or changes that have occurred since the previous survey was completed. Reviewing the survey date early can help avoid delays during closing.

What are Table A items on an ALTA survey?

Table A items are optional features that can be added to an ALTA/NSPS Land Title Survey to provide additional information. These may include flood zone classifications, utility locations, parking counts, setback lines, and zoning-related details. Buyers should review which Table A items are needed based on the property’s intended use and development plans.