What Are ALTA/NSPS Land Survey Requirements?

At some point, you must decide on the best real estate option for your business. Investing in commercial real estate is not just purchasing property with existing structures. You may feel that your business can continue to function on your current property if you make some modifications. This type of loan will work for either of your needs.

During underwriting, most lenders require that an ALTA/NSPS Land Title Survey be performed. This is a type of land survey specifically developed for commercial properties. Let’s review some of the requirements of an ALTA/NSPS Land Title Survey.

How Do I Order An ALTA/NSPS Land Title Survey?

Contact several licensed land surveyors for an estimate and timeline for the ALTA/NSPS Land Title Survey. These are intensive and can take several weeks to months to complete. The land surveyor should ask for the necessary “Table A: Optional Survey Responsibilities and Specifications.”

What is a “Table A: Optional Survey Specification and Requirements”?

Lenders usually require this type of survey to ensure there are no concerns on the property. This allows the property to be collateral. They will also want to confirm that no one else can challenge ownership. The lender may request up to 19 items be included in the final drawing of the survey. All lenders may have different requirements, so be sure to request that information.

What Are Some Requirements?

Other requirements include detailing the flood zone based on FEMA or local standards to substantiate the necessity of flood insurance. Elevation changes, also known as topographic lines, on the property may indicate challenges when building on the property.

The client must obtain a zoning report from the local authority. This ensures that your proposed purpose of the property meets local zoning ordinances.

Evidence of party walls and underground utilities allow the lender to see the larger picture of what is on the property. They can also identify if any earlier construction falls outside of easement lines. The lender may also need to know if any recent earthmoving activity is visible. This information will also assist the engineer and contractor when developing the property.

Lenders may also add additional items to this list. These items may be mandated by the lender to approve the commercial real estate loan, or the purpose of the property may indicate the need for additional information.

When applying for a commercial real estate loan, investing in the ALTA/NSPS Land Title Survey provides you with peace of mind with your commercial project.


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