When buying property, a common question is whether a new survey is needed. In this article, we’ll discuss the pros and cons of ordering a new survey.
One of the first considerations is cost. In the Lower Hudson Valley area, a new survey can range from $1,500 to upwards of $3,000, depending on several factors, including the size of the property.
Benefits Of Ordering A New Survey
That said, a new survey can be critical because property conditions change over time. Structural issues, boundary disputes, or encroachments that weren't present in previous surveys may have developed. Even if a survey was done recently, factors like severe weather, construction on neighboring properties, or natural settling could have altered the property's condition.
So while a new property survey is generally recommended to ensure against defects which a seller is typically obligated to cure per the contract of sale, there are some situations where it might be unnecessary or less crucial.
Reasons To Skip The Cost Of A New Survey
First, most mortgage lenders do not require a current survey, because the title insurance policies for lenders will insure against loss associated with boundary issues such as encroachments, out of possession matters, etc.
Second, when purchasing a property that has had a thorough survey within the last few years and if there are no fences or stone walls in proximity to the property lines, you might be able to obtain and rely on a recent survey
Also, for new construction properties still under warranty, a full survey may be redundant since the building has recently passed all building code inspections and is covered by the builder's warranty.
For very low-value properties being purchased significantly below market rate for renovation, a survey might not provide much additional value since you're already planning to conduct major works and are buying with the understanding that significant repairs may be needed.
However, it's important to note that skipping a survey always carries some risk, and most property professionals would still advise getting one done to protect your investment.
For your protection as a buyer, it's advisable to commission a new survey rather than relying on outdated information. This small upfront investment can save significant money and stress in the long run by identifying potential problems before they become your responsibility.
If you have questions, please call or email The Donaldson Law Firm PLLC.