Many a home buyer has been miffed by the requirement for a building
location survey and few understand how much it contributes to the buying and
selling transaction. Still others will become annoyed when told by their
lawyer or their mortgage company that a deal can't go forward until a
building location survey is done. In standard real estate transactions, the
lawyer's job is to examine the title and to give an opinion on the quality
of that title. "Title" refers to the legal right of ownership in
property as reflected in documents registered in the Ontario Registry
System. When a mortgage lending institution is involved, the lawyer normally
must provide it with this opinion as well. The opinion will be based on a
review of the title documents, especially in relation to the agreement of
purchase and sale and on a review of the reports from several municipal,
provincial and, occasionally, federal government offices. BE AWARE THAT THE
ONLY SURVEY A BUYER CAN RELY ON IS ONE BEARING THE EMBOSSED SEAL OF A
QUALIFIED SURVEYOR. A PHOTOCOPY IS WORTHLESS. The other important aspect of
title that must be reflected in a lawyer's opinion is the "extent of
title" - that is, how well the description of a property as recorded in
the title documents matches the actual layout of the property. For this,
lawyers rely on the expert drawings and written reports of Ontario Land
Surveyors. The drawing and report, traditionally referred to as a
"building location survey", make up what is called a Real Property
Report. A proper survey contains the drawing a surveyor prepares showing the
results of his or her findings at the house site. It will also show any
features that have been specifically requested. A survey should also comment
on any abnormalities revealed by the surveyor's research and work at the
site. REAL ESTATE AGENTS AND LAWYERS WILL OFTEN CONSIDER
"UP-TO-DATE" TO BE A FUNCTION OF HOW OLD A SURVEY IS; THE ONLY
TRUE MEASURE IS WHETHER THERE HAVE BEEN ANY CHANGES TO THE PROPERTY. The
rules and regulations under which qualified surveyors operate require them
to draw attention to all problems and issues found during their research.
Without an up-to-date survey a lawyer cannot provide an opinion about the
lot size, access to the property, encroachments of any structures on or from
neighbouring properties, the precise location of easements or rights-of-way,
additions, alterations, or subtractions such as road widenings,
expropriations or partitions, possible Planning Act violations, shore lines,
and other problems that may only become apparent when revealed by a survey.
Without a survey, a lawyer cannot compare the actual dimensions of the
property with municipal zoning requirements.
Armed with a Real Property Report, the lawyer has the information to
give an opinion regarding violations of municipal bylaws, rights-of-way,
encroachments and the like. All of these will be shown on the survey and
will affect the quality of the title the buyer will be getting. Most
agreements of purchase and sale give the buyer's lawyer time to search the
title to ensure the buyer won't inherit any surprises. Without an up-to-date
survey, the lawyer's task will be severely constrained. It's prudent,
therefore, to find out before signing the agreement whether the seller has a
survey and if not, to allow the buyer to factor the additional cost of
having one done into his or her bargaining objectives. In many new home
transactions, the builder's standard agreement of purchase and sale will
make provision for supplying the buyer with a survey, but often it will be
silent on the issue. In all such cases, the buyer should ensure that the
agreement is amended to require the builder to provide a Real Property
Report. Be aware that the only survey a buyer can rely on is one bearing the
embossed seal of a qualified surveyor. A photocopy is worthless. Many
agreements of purchase and sale in resale transactions are amended by
including the provision that the seller shall provide an
"up-to-date" survey of the property. Real estate agents and
lawyers will often consider "up-to-date" to be a function of how
old a survey is; the only true measure is whether there have been any
changes to the property since the survey was prepared. A survey prepared a
month ago for construction purposes will not be "up-to- date",
where a 30-year-old survey may be if there have been no changes to the
property. In almost every home purchase, an up-to-date building location
survey should be obtained. When you compare the cost of a survey against the
price of the house you are buying, you will normally discover it to be well
below one percent, making a survey an inescapably good value.
TAKEN FROM: The Ontario Land Surveyor Quarterly, Winter 1997
NOTE: This type of survey is what is known as a "
Surveyor's
Real Property Report".
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