When to Close With an Existing Survey vs. Ordering a New One

Using a pre-existing survey may seem like a quick and inexpensive way to save time and money in a real estate transaction, but this is not always the case. In other cases, the problem with the old survey is only discovered late in the deal or after closing.

The question is not whether there is a survey, but whether the survey is still correct as to the property, the transaction, and the requirements.

A survey is usable if specific criteria are satisfied.

• These property lines have not changed

New improvements have not been included.

• There are no known boundary disputes or encroachments

• Lender and title requirements allow reliance on previous work

• The survey is up-to-date and reflects current conditions

As long as the underlying underwriting and title standards are met, previously conducted surveys may be accepted to avoid duplication.

Most surveys expire much sooner than people think. Common problems include:

Fences, sheds, decks, additions, driveways, or other improvements might also have been constructed since the survey. Even small changes can result in boundary-related issues or encroachments, which need to be recorded.

Easements or right-of-ways, or easements by necessity, may have been previously created. A prior survey does not create an assumption about later title matters.

Not all surveys are prepared equally, and a survey prepared for one transaction may not meet the needs of another lender, title insurer, or transaction.

An older survey may still be unacceptable to lenders or title companies, even if no obvious changes have occurred, due to a lack of knowledge about changes to neighboring properties.

You may want to order a new survey if:

• Property that is irregularly shaped or has non-standard boundaries

• The parcel includes acreage or undeveloped land

• Improvement levels are close to boundary lines

• Neighboring structures may extend near or over the property line

• Construction, renovation, or subdivision of premises 

• Updated survey evidence is required by the  lender or title insurer

This increases the likelihood that irrelevant information may affect underwriting, negotiations, or future use of the property.

Lenders and title insurers prefer risk assessment over convenience.

A survey may need to be done, even if it exists:

• Witnessing that it meets current requirements

• Verification that no changes have occurred

• Updated survey evidence to remove or modify survey exceptions

However, a survey that does not meet these requirements will be rejected regardless of the quality of the original survey.

Often, these problems are found late, and little time is available to rectify any issues with the surveys.

Delays while further survey work is ordered:

• Renegotiation over encroachments or boundary issues

• Permit heightened underwriting scrutiny

• Post-closing disputes which could have been identified earlier

The attempt to reduce costs may end up increasing costs and friction in practice.

There is a short framework to help with this decision:

• When expediency is the key and the property's conditions remain unchanged, an existing survey is acceptable to all parties involved.

• If certainty, clarity, or future use is particularly important, a new survey provides current, defensible information.

Choosing the right option depends on risk tolerance.

Just because a survey exists does not mean that it is wrong, nor does it mean that a new survey is needed. Additionally, you will want to determine whether the existing document is still an accurate depiction of the property and transaction.

When in doubt, do such checking early, as the fault is easier and cheaper to fix at that point.