Buyers Title Insurance is a must do in my Real Estate Book. You really never know how important it is until you need it. Then it's too late to add it. Listen to your real estate professional when the topic of old survey or new survey comes up. Select NEW.
Buyer’s ask “new survey or old survey”?
Does Buyer’s Title Policy Endorsements Really Protect Them when it comes to using an old survey?
Buyer’s purchasing a home should ask themselves do I need a new survey or should I use the seller's existing survey? It has become quite common for buyers of residential property to accept and rely upon a survey prepared for an earlier transaction and certified to parties other than the current buyer.
Real estate agents may suggest to buyers that this is a fine course of action and that there is no reason for a buyer to spend the money for a new survey. Buyers generally feel comfortable with accepting such a survey because the title company will delete Schedule B, Item 2 (survey exception) from the owner’s title policy (except for “shortages in area”) and issue a T-19.1 endorsement to the owner’s title policy.
A new survey might cost $400+, and some buyers might be hesitant to spend that much money when they are spending hundreds of thousands of dollars for real estate. Unfortunately the combination of an owner’s title policy with the survey exception deleted a T-19.1 endorsement, and an old survey may leave a buyer unprotected against some title risks. Buyer who accepts an old survey generally has no claim against the surveyor, that buyer must rely on the coverages in his or her title policy if a survey issue arises. Typically, a buyer will get a T-19.1 endorsement on the policy. The T-19.1 provides only limited coverage to items that are expressly excepted in Schedule B. If the “survey exception” is modified, there is still no coverage against loss from encroachments into easements or over building lines that are specifically mentioned in Schedule B.
Just because a title company will issue a title policy does not mean that there are no issues with the transaction. Title policies are insurance policies. They do not guarantee the title is “good.” The policy will only insure against some damages that may arise if there are title defects.
Real Estate Licensees are safer to suggest that a buyer get a new survey rather than relying on an old survey. Buyer's ask "new survey or old survey"? the answer NEW SURVEY.
If you or someone you know is considering selling or buying real estate in Lago Vista, Leander, or Cedar ParkI would welcome the opportunity to consult with you or them about the many possibilities our communities offer and help to consult with your real estate investment protecting your best interest.
Bob Ratliff, REALTOR® (512) 587-5689
TX Licensed Broker #492107 Information is deemed reliable but not guranteed, all rights reserved by Canyon Vista Realty
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