Hi all,
Just looking for some opinions on the following "required" certificate for a survey.
I don't do many ALTA surveys and usually don't stray from the standard certification.
I don't believe this would be a true ALTA survey since they want the proposed improvements shown also, but would like to hear your opinions on the language.
Thanks in advance for any suggestions.
CONSTRUCTION LOAN
SURVEY CERTIFICATION
The following is the required form of certification:
The undersigned surveyor ("Surveyor"), a registered land surveyor in the state or commonwealth identified below Surveyor's signature, hereby certifies to XXXXXXXXXXXXXXX ("Borrower"), ______________________________ ("Lender") and XXXXXXXXXXXXXXXXXXXXXXXXXX (the "Title Company") as follows:
A. This is a true and correct survey of: [insert legal description] (the "Property").
B. This refers to XXXXXXXXXXXXXXXXXX Commitment No. __________ dated _____________ for the Property.
C. This is to certify that this map or plat and the survey on which it is based were made in accordance with the "2011 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys," jointly established and adopted by ALTA and NSPS in 2011, and includes Items 1 through 4, 6(a), 6(b), 7(a), 7(b), 7(c), 8, 9, 10, 11(a), 11(b), 13 through 19, 20(a) and 21 of Table A thereof. Pursuant to the Accuracy Standards as adopted by ALTA and NSPS and in effect on the date of this certification, undersigned further certifies that in my professional opinion, as a land surveyor registered in the State of XXXXXX, the Relative Positional Accuracy of this survey does not exceed that which is specified therein.
D. This is to certify that this map or plat and the survey on which it is based correctly shows the location of proposed improvements as shown in the Site Plan dated ______________, ____ prepared by _____________________________,
E. The Property contains ________ acres (i.e. ____________ square feet).
Borrower, Lender, Title Company, their successors and assigns may rely on this Certificate.
Date: ________________________ [to be dated within 60 days of closing date]
(signed)_________________________ (seal)
Registration No.
Note: This required form of certification requires that the survey correctly shows the location of all existing buildings, and structures, and improvements on said property; that there are no visible encroachments onto adjoining properties, streets, or alleys by any of the existing buildings, structures, or improvements; there are no visible right-of-ways or easements on said described property other than shown thereon; that there are no party walls or visible encroachments onto said described property by buildings, structures, or other improvements situated on adjoining property, except as shown on said survey and the location of all easements, set-back requirements and other matters identified in the title insurance commitment.
QUESTION #4: What happens if the Surveyor is requested to change the Certification?Does that mean it’s not a “real” ALTA/ACSM Land Title Survey?
There is some concern in the Client community regarding the use of the words “only” and “unaltered” in Section 7 covering Certification.
Under the 2011 Standard, the only certification allowed on the face of an ALTA/ACSM Land Title Survey is the Certification in Section 7, except as required by law or regulation. Some state surveying boards, for example, require specific wording for Certification.
The Certification in Section 7 is almost always sufficient and this standard “short-form” Certification covers every issue that the Surveyor can actually and honestly certify to by stating that the Survey was conducted in accordance with the Standards. The change effected by the wording in Section 7 of the 2011 Standard is essentially a statement from the title industry and the surveying profession that title insurance coverage can be provided without additional or alternate Certification.
For those Clients who require an additional or alternate Certification, it is permissible to negotiate with the Surveyor to provide another additional Certification on a separate sheet of paper and cross-reference it to the Survey.
In lieu of an additional or alternate Certification, the drafters believe that Lenders may simply use these standards (including Table A, and Table A, Item 22, if necessary) as the basis for their requirements.
Your options are listed above. The certificate that you quote is NOT allowed on the face of an ALTA survey. The lawyers are trying to shift responsibility that they do not want, onto your shoulders.
They requested an ALTA. They do not have the authority to change the ruling. The options listed above would seem sufficient.
Direct them to the ALTA website and let them read it for themselves.
Proposed Improvements ALTA Certification?
You can only certify to what you measure.
You cannot certify that a proposed improvements is or will be where you propose it.
How do you feel about paying to move an improvement that is not where you proposed it?
Paul in PA
Proposed Improvements ALTA Certification?
As an aside. We as surveyors are often outraged (rightfully so IMHO) at the frequent requests for additional certifications from attorneys who have a weak understanding of the ALTA standards. But has anyone here had first hand experience or at least know somebody who has been directly hurt by signing such a certification?
Hack
Proposed Improvements ALTA Certification?
Yes, I do. He signed a certification stating he had shown all utilities. He had indeed researched all of the utility company maps, but somehow a gas line crossing the site was overlooked. It got expensive really fast.
An ALTA survey is for the purpose of showing existing conditions. Showing proposed improvements with the existing conditions map as the background or base info is a separate drawing and a separate service.
Stick with the standard certification for the ALTA, along with any Table A items they request. Do not add to it or subtract from it. The NSPS and the ALTA put in a lot of hours, backed by a lot of years of experience establishing and periodically updating these standards and the certification. I'm sure attorneys for both organizations reviewed and had input. The certification as provided in the standards adequately protects you as the preparer, and adequately protects the buyer, lender, and insurer of the property. Attorney provided certifications nearly always include terms that the surveyor cannot reasonably certify to. They almost always place liabilities on the surveyor he should not carry. They also often end up decreasing the protections for the buyer, lender, and insurer because of the inclusion of unenforceable terms.
Attorney provided certifications have two purposes: 1) To shift as much financial liability onto the surveyor as the surveyor is willing to accept, and more importantly (to the attorney or law firm) 2) To generate and justify additional billable hours creating, reviewing, and negotiating the certification. There are no additional protections for the attorney's client that are not in the standard certification. If the attorney insists there are, offer to go through it with him point by point. Each point will either be found in the standard certification or will be something you cannot reasonably attest to.
Offer to provide a drawing that uses the mapped info from your ALTA as the base on which you show the proposed improvement locations. As long as your drawing data and notes make clear what is existing and what is proposed per the provided plans, and any certification you provide clearly states the title, date, and revision # (if applicable) of the plans provided, I see no problem with depicting proposed improvements. Doing so is not a guarantee or certification that the improvements will end up built per plan, it is a certification that your drawing reflects the plans provided to you. Also negotiate that the certification for this service specifies that in the event of a conflict with other sets of plans, reference is to be made to the hard copy set received by you and kept in your files.
I state in my contract what certification will be used and items numbers (negotiated at the start) that will be placed on the face of the Survey. This has saved me more than a few times with lawyers that want to shift these responsibility to me. I do not sign anything that I do not feel comfortable with. I always love the "You are the first surveyor to refuse to sign."
The proposed improvements need to be certified by the person or company that is/has created the development plans for such improvements.
Thanks for the quick replies guys.
I always love the "You are the first surveyor to refuse to sign."
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Maybe you should respond with "You're the first attorney to ask."
Proposed Improvements ALTA Certification?
I am aware of two cases. One involved a surveyor and one involved a title company.
