If you are buying commercial property, someone has probably mentioned an ALTA survey. Your lender, title company, or attorney may have said you need one before the deal can close. But if you have never come across this term before, it can be hard to know what it means or why it matters.

An ALTA survey is the most detailed type of land survey you can get. It is built for large property deals where lenders and title companies need to know everything about a piece of land before money changes hands. 

What Does ALTA Stand For?

ALTA stands for the American Land Title Association. NSPS stands for the National Society of Professional Surveyors. These two groups worked together to create a set of rules that define exactly what an ALTA survey must show.

These rules apply in every state across the country. That is what makes ALTA surveys so useful in big property deals. No matter where the land is located, everyone knows the survey was done the same way and meets the same standard.

What Is an ALTA Survey?

An ALTA survey is a thorough property survey that does much more than mark the edges of a piece of land. It documents everything about the property that could affect who owns it, what it is worth, or how it can be used.

To prepare the survey, a licensed land surveyor reviews a document called the title commitment. This document is provided by the title company, and it lists all the legal records tied to the property. Things like easements, restrictions, and other claims on the land are all included. The surveyor then goes out to the property and shows where each of those items actually sits on the ground.

Every ALTA survey must show, at a minimum:

• The exact legal boundaries of the property
• All easements listed in the title commitment, placed in their correct locations
• All buildings, parking areas, driveways, and fences on the property
• Any encroachments, which are structures that cross over a property line in either direction
• The property’s flood zone status based on FEMA data
• The zoning classification of the property
• Whether the property has legal access to a public road
• Visible utility lines and any recorded utility easements

What Are Table A Items?

ALTA surveys can also include extra details called Table A items. These are optional add-ons that are chosen by the client, lender, or title company based on what the deal requires.

Common Table A items include the square footage of buildings, the number of parking spaces on the lot, and the location of utility lines inside the property. Your attorney or lender will usually tell you which Table A items they need before the survey begins.

How Is It Different From a Standard Boundary Survey?

A standard boundary survey shows where the property lines are. It is accurate and legally valid. For most home purchases and simple property uses, it gets the job done.

An ALTA survey does everything a boundary survey does, and then some. It connects the physical survey to the legal documents in the title commitment. It shows how easements, boundary issues, and other recorded items actually affect the land. It also includes flood zone and zoning details that a standard boundary survey leaves out.

The key difference comes down to acceptance. Most title companies will not issue a full title insurance policy on commercial property based on a standard boundary survey alone. An ALTA survey is the document they require to do that.

When Is an ALTA Survey Required?

Buying Commercial Property

Any purchase of commercial real estate will almost always require an ALTA survey. This includes office buildings, shopping centers, warehouses, apartment buildings, and mixed-use properties. Before a lender approves the loan or a title company issues insurance, they need an ALTA survey on file.

When Your Lender Asks for One

Banks and large lending institutions require an ALTA survey as a condition of approving a commercial loan. In most cases, this is not up for debate. The loan will not go through without it.

When You Need Full Title Insurance

A standard title insurance policy contains something called a survey exception. This means the policy will not cover any losses that a proper survey would have caught, such as a structure crossing the property line or a boundary dispute. To remove that exception and get full coverage, an ALTA survey is almost always required.

High-Value or Complex Transactions

An ALTA survey can also make sense for high-value home purchases, properties with a complicated history, or deals involving buyers from out of state who want a survey that meets a consistent national standard.

Do You Need One for a Regular Home Purchase?

For most home purchases, a standard boundary survey or mortgage survey is enough. An ALTA survey is generally more than what is needed for a typical residential deal.

That said, if the home has a history of boundary disputes, sits on a large or complex lot, or will also be used for business purposes, it is worth asking your title company or real estate attorney whether an ALTA survey is the right choice.

How Long Does It Take?

An ALTA survey usually takes one to three weeks after the surveyor receives the title commitment. Properties with many recorded easements or a long legal history may take more time.

If you have a set closing date, contact your surveyor as early as possible. Passing the title commitment to them right away is the best way to keep the timeline on track.

Frequently Asked Questions

Who pays for the ALTA survey? 

In most deals, the buyer orders and pays for the survey. This can sometimes be negotiated as part of the purchase agreement, but it typically falls on the buyer.

Can an old ALTA survey be used for a new deal? 

Sometimes. If the property has not changed and no new legal documents have been recorded since the survey was done, a surveyor may be able to update and recertify the old survey. The surveyor must review it first to confirm it still meets current standards.

What is a title commitment and why does the surveyor need it? 

A title commitment is a document from the title company that lists all legal records tied to the property. The surveyor needs it to know which easements, restrictions, and other items must be located and shown on the survey. Without it, the survey cannot be completed to ALTA standards.

For a free land surveying quote, call us at (256) 770-8662 or send us a message by going here.

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