Can a surveyor and a mortgage provider have an agreement where one and only one surveyor's work is accepted for Title Surveys?
Potentially, yes. However, most of these agreements come with a provision that if the deal doesn't close you don't get paid. This is a clear conflict of interest.
As is often the case, the devil is in the details.
If the deal doesn't close you don't get paid.
Is also a violation of RESPA.
> If the deal doesn't close you don't get paid.
> Is also a violation of RESPA.
Its specifically banned in Florida (not that it doesn't go on anyways).
> Can a surveyor and a mortgage provider have an agreement where one and only one surveyor's work is accepted for Title Surveys?
Let's assume for a moment that David Ingram's concern is not an issue.
The answer is still unclear. IF you have to pay the bank for the privilege of being the one and only PLS whose work is accepted, then the answer is NO. There is a provision that prevents us for paying 3rd parties to obtain work.
If the bank wants to only accept your work because they like the quality of your work and they understand that your opinion won't be impacted by their willingness to make you their exclusive PLS. Then it may be legal. Of course then you run into the issue of the other area survey firms objection at the appearance of impropriety.
Mostly, this sort of thing isn't a good idea. But that doesn't mean the bank can't strongly suggest that the client's best option is to get you to be the surveyor of record.
Enjoy spring in the USVI.
Larry P
A contract for surveying services could exist binding the two to such an agreement.
It could also be a handshake agreement between the two parties.
When it comes to mortgage providers, the no sale no pay agreement is usually in place.
Very much against the law in Texas. Also, it is hard to prove when it is not on paper.
In a nearby county, many banks insist upon using their surveyor.
[sarcasm]You know the one, he always put the boundaries with the fence and follows all the bends of the fence, always sets all monuments and never finds any existing ones.
[/sarcasm]
I've had a dozen or so loyal clients, friends and family that in the past 40yrs insisted only I survey their property.
By chance, today a Realtor contacted me about the resurvey of a property 2 hours away that I first surveyed in 1988 for a schoolmate concerning a boundary dispute and creek being rerouted around the family's property denying them water. The property sold after his passing. This will be the 5th change of ownership and third survey. Present owner is adding 10ac to the 5 acre house tract and selling the remaining 100± acres separately.
Most of the no close no pay crowd were re-educated during the denial debates back in the late 1980s and it is a rare occasion for that to be mentioned around here. The topic is still hinted at vaguely and indirectly by some.
A big robust laugh is all they ever get from me. 😉
The no sale = no pay issue isn't relevant here.
What is relevant is I used to get a lot of calls from banks. No more. None. And I have never had a significant issue with quality of the work, rates, billing, scheduling or anything. And now one bank has refused to accept my surveys even if their customer wants to hire me. Only one engineer's work (yup, that's right) is accepted at this bank for this island.
Something is going on. Maybe the bank is doing their own billing so they can get a little income from the surveyor's work. Maybe they have had trouble with bad surveys and this is their solution. Standards are very low here. Maybe it's something else.
Anything like this going on on the mainland?
I am not sure if this is illegal but it sure is not right..I would discuss with your board.