MI vs. Commercial MI

(It depends Of course what your state regs mandate)

I used to work for a firm (Colorado) that did what they called "Type 2" ILC's

Basically it was a detailed Improvement Location Certificate, usually done on commercial sites. We would locate not only the footprint of the building but all C&G, Light Standards, curb cuts, utility lines, stairs, drain pans, retaining walls, fences, etc, etc, etc

In essence it was an ALTA survey without setting the property corners.

> My question is has anyone run into this type of MI and does it seem like I am covering the bases for required information? Thank you.

We don't do MI's where I'm from (the client can usually call around and get a full survey for cheap enough). I would expect the only difference between an "commercial" and a "residential" MI is you are being put on notice that, when the buyer relies upon the MI to do something stupid (like erroneously placing an improvement), it'll just cost you a whole lot more to defend yourself against a damages claim (same issue with any type of survey, really). And, it doesn't matter if you're wrong or right in the work product. You'll still be on the defendant's list.

JBS

It sounds to me like what they really want is an ALTA survey, but they don't want to pay the price or do the work that they are required to do to get one. When they came out with the new ALTA standards that required attorneys to provide the deeds for the adjoining properties, I thought it would only be a matter of time before something like this happened. Next will come "owner's certifications" that everything is "ok".

I think the only unanswered question is: do they want it printing on Charmin or Angel Soft. 😉

:good: :good:

It sounds to me as if the attorney isn’t familiar with the commercial real estate business. You can probably cut this off rather quickly by checking with the lender and/or title company involved. I've yet to see a title company willing to remove the survey exception from a title policy without an ALTA. I would make sure that you have advised the client of the importance of removing the survey exception from the policy. Also, the lender might not accept anything less than an ALTA (or at least the removal of the survey exception from the title policy).

So at the end of the day, whatever this "commercial MI" is or is not, may be a mute point. In any event, I wouldn't provide what they are asking for. It essentially amounts to providing them access to your E/O policy at a discount. No amount of disclaimers is going to prevent them from suing you if a problem arises. I am also skeptical on the ability of disclaimers as a defense for not meeting industry standards when it comes to surveys. If it looks like a survey and has an LS signature and seal, the public has a right to expect that it meets standards. Not saying you couldn't successfully defend yourself in court, just that I find it an iffy proposition and just not worth the risk.

Offer professional advice and services and if they aren't in the market, wish them well and move on. Engaging in something like they are talking about is a losing proposition for you. At the end of the day we rise and fall on our reputations. I'd rather be the guy who gave them solid professional advice and didn't get the work. When this comes back to bite someone (on this deal or something similar), your stock in trade goes up, while that of those who engaged in this kind of activity collapses. In the long run "selling discount pseudo-surveys" is not a winning business model. Providing professional advice and services for a professional fee is, IMO. Good luck.

Bob

> ... In the long run "selling discount pseudo-surveys" is not a winning business model. Providing professional advice and services for a professional fee is, IMO. Good luck.
>
> Bob

... and you can take that to the bank ...