When buying or selling a home, property surveys play a crucial role in ensuring the transaction is accurate and legally sound. A property survey is a detailed drawing that outlines the exact dimensions of a piece of land, showing the location of buildings, fences, driveways, and roads. It also indicates any easements or rights-of-way that utility companies or others may have over the property.
Why Are Property Surveys Important?
For purchasers, a property survey can provide peace of mind by verifying that:
- The property size matches the listing and purchase agreement.
- There are no encroachments, meaning no part of your buildings extends onto a neighbor’s land or vice versa.
- The property complies with local municipal laws, such as required setbacks (the minimum distance between buildings and the property line).
In some cases, your financial institution may require a recent survey, especially if you are securing a mortgage to finance the purchase. Although surveys that are 15 or 20 years old may be acceptable if the property hasn’t changed, a lender might request an updated survey. Additionally, lenders often require title insurance to protect against property-related issues not covered by a survey.
Do I Need a Survey When Buying a Home?
If you are buying a home, it’s wise to ask the seller if they have an existing survey. You can include a clause in the purchase agreement requiring the seller to provide a copy of the survey to you or your lawyer shortly after the agreement is accepted. If the seller does not have one, you may want to negotiate for the seller to provide an up-to-date survey at their cost. When purchasing a newly built home, the builder typically provides a survey, but it’s important to ensure this is explicitly stated in the contract.
When Might You Need a New Survey?
Even if you purchase title insurance, a new survey may still be useful. For instance, if you plan to build a fence or an additional structure on the property, a survey ensures that you comply with local setback laws and that the fence is correctly positioned on your land. The cost of a survey varies, depending on the size and complexity of the property, ranging from a few hundred to several thousand dollars.
If you need a new survey, your real estate lawyer or agent can recommend a qualified land surveyor. While surveys may not always be required, having an accurate, up-to-date one can save you from future legal and boundary disputes.
For more information on buying or selling a home, contact a real estate lawyer or visit the Ontario Real Estate Association (OREA) at orea.com.