Do You Really Need a Residential Property Survey?

A property survey is usually done for the benefit of the home buyer.

Whether you're buying or selling a home, you may be wondering whether you need an up-to-date property survey. If you're the home buyer, the answer is generally, yes - but there can be advantages to the home seller as well.

However, rather than simply relying on the short answer, you need a clear understanding of when and why you should have a survey done.

With the construction of a house, an original residential survey is carried out. Over time, improvements may be made to the property, such as fences, a pool, garden shed, and so on. Additions to the house, such as decks, porches, or even an extension may also have been built after the original construction.

As well, certain easements ... that is, the right to access the property - may have been added to allow access to hydro (electricity) or telephone companies for example. If such changes have occurred since the original survey, it's out-of-date, and therefore has little value in the real estate transaction.

A survey usually resembles a map, and includes a written description of the property. (It is also often referred to as a "property survey map".) If the survey shows certain deficiencies, such as a fence located outside the property, the homebuyer can then ask the seller to correct the problem before completing the purchase.

Your real estate agent can prepare an offer to purchase that has a contingency clause (is conditional) upon receiving an up-to-date survey that's acceptable to the homebuyer.

Also, some lending institutions require the buyer to provide a current survey of the property being purchased before they will approve a mortgage loan.

Since having an up-to-date survey is generally of benefit to the buyer, home sellers who can offer a current survey for their listing will find it an attractive plus. Also, providing a current survey to the homebuyer helps ensure the correct information is properly disclosed, and that helps your sale to move smoothly to completion.

It should be noted that not every transaction requires a new property survey. It depends in part on when the last survey was completed, and what physical changes have taken place since then.

If a survey is needed, and no up-to-date version is available, you may be wondering who pays to have a new property survey done. The time to raise this question is during the negotiations between homebuyer and homeseller. The seller is under no obligation to provide any such documentation, or to participate in the cost of a new one, unless it's spelled out in the offer.

Ask an experienced real estate agent for their expert advice on Whether you need a property survey and any other real estate matter.