One of the most common mistakes and needless expenses that
home sellers encounter involves the survey section of their sales contract.
Despite the bold type and plain English, there are often disputes and confusion
about providing a survey.
The survey section is on page 2 of the standard TREC
contract. Paragraph 6C specifically addresses who will provide a survey and
when it is due. Note that there are 3 options on the contract regarding the
survey. One – and only one – of these options should be checked before
completing the contract. The most commonly checked option is paragraph 6C (1).
Paragraph 6C (1) states that the seller will provide an
existing survey along with the notarized survey affidavit within a specified
number of days. If the survey is not acceptable to the title company or buyer’s
lender then there is a place to check whether the buyer or seller will pay for
a new survey.
This is where we see a lot of misunderstanding. Often the
box is checked that the buyer will pay for a new survey in this paragraph. And
sometimes the seller mistakenly thinks that if they can’t find their survey,
this means the buyer will pay for a new one. That is not the case. If box 6C
(1) is checked, the buyer would only pay for a new survey if the seller’s
existing survey was unacceptable to the title company or lender.
All too often the seller agrees to provide their existing
survey to the buyer and then can’t find it before it is due. In that case, the
seller will be paying for a new survey. The Survey Affidavit is also due with
the survey. This document must be notarized and signed by the sellers.
Occasionally the seller provides their existing survey and forgets about the
survey affidavit. They both must be provided to the buyer and title company.
Paragraph 6C (2) states that the buyer will pay for a new
survey. Paragraph 6C (3) states that the seller shall pay for a new survey. If
there is not an existing survey on hand, one of those paragraphs should be
checked.
Regardless of which option the parties agree to, the amount
of time should always be filled in. If you don’t fill in the number of days for
the survey to be provided, then closing delays may occur. Either party could
delay getting the survey if there is no deadline. However, both the title
company or lender time need time to review and approve the survey before
closing. And that review process takes time.
If you’re selling a property and don’t know exactly where
your survey is, then don’t agree to provide it. Why not track it down before
putting you house on the market? Make copies and have your agent upload it into
the MLS so that potential buyers can see it.
A new survey typically costs $400-$600 for the average size
suburban lot. They take a week or two to get. And lenders require them before
issuing a mortgage on a property. If you’re a current homeowner, do you know
where your survey is right now?
The opinions expressed are of the individual author for
informational purposes only and not for providing legal advice. Contact an
attorney to obtain advice for any particular issue or problem.[where: 75230]
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