Why Are Surveys So Important for Florida Real Estate Closings?
A survey is a crucial piece of the real estate closing puzzle. If a buyer is purchasing with traditional financing and the lender requires a Florida Form 9 Endorsement, a survey is required. However, a survey is not required for cash purchases in Florida. If a lending institution requires a survey in order to provide large amounts of financing, wouldn’t you think a cash buyer would want to protect their large investment?
Nonetheless, when it comes to cash purchases, we are often asked, “Why do I need a survey?” A simple explanation is that a survey shows the location of the structure and depicts the boundary lines on the property. A survey is critical because it is necessary to determine whether the house violates any setback lines, is not located on a neighboring property, is not located on an easement, and the property has no encroachments that affect the marketability of the property.
Surveys Help Uncover Serious Legal Issues
On a higher level, a survey is needed to determine the legal right-of-way access. A buyer cannot assume that because the property exists near a road, there is a legal right of way access. A survey is needed to determine whether a waterfront property is actually “waterfront” and does not have any gaps precluding access. Just because a property was built to code and had the appropriate permits pulled does not mean the possibility for survey defects does not exist.
Common Survey Defects in Florida
A real-life example of a survey defect we often see is a newly built pool or home addition built through a Homeowner’s Association Building Setback Line (“BSL”). Many associations have BSL’s stating that the dwelling or pool cannot be built more than a specific number of feet from the rear, front, or side of the property. Unfortunately, pool companies do not necessarily review association BSL’s when obtaining permits through the appropriate governmental agency.
Despite the intricacies of the issue, the legal team at Berlin Patten Ebling are experts at resolving survey defects. A typical remedy for an Association BSL violation is to obtain a Variance signed by the Association’s President, Board Member, or Authorized Signatory, which states that the Association will allow the violation to remain as a non-issue and that the Variance will be recorded in the Public Records to run with the land.
The Risks of Skipping
In the example above, if a cash buyer chose to forego a survey during the closing process, the buyer would have no idea about the survey defect until a future purchaser obtained a survey, notified the owner of the property, and the owner would have the responsibility to remedy the defect on their own dime.
Talk to a Real Estate Attorney Before You Close
There is a litany of possible survey defects and remedies. It is of utmost importance that buyers obtain a survey to ensure there are no survey issues. Should you have any questions about the importance of obtaining a survey, types of survey defects, and/or types of remedies for survey defects, we encourage you to consult with your trusted real estate attorney.
