Well, a land survey is important to clarify any legal dispute and other facts. But the question is, who pays for land survey? The buyer or the seller—who should pay?
Generally, the system of paying for the land survey is that the person who requests the survey should pay the survey fees. Simply when the buyer requests or applies for a survey, the payment or receipt is created on the buyer’s name.
But the bargain still arises when the time comes to pay the fees. So, in this comprehensive guide, we’ll disclose all the facts of land survey cost and who must pay for it.
Who Pays for Land Survey?
When a land survey is needed, the cost can fall on either the buyer or the seller in a real estate transaction, depending on various factors. Cardinal Surveying & Mapping says they usually get the survey cost from the one who requests the survey.
However, some scenarios to consider are–
When Does the Buyer Pay for the Land Survey?
Often, when someone is buying a property, it’s obvious that the cost of the survey becomes part of their due diligence.
Buyers might want to verify property lines, check for easements, or confirm that the land’s legal papers matches up with what they’re expecting. In this case, buyers pay for the land survey as he needs it.
When Does the Seller Pay for the Land Survey?
In some cases, the seller might agree to cover the cost to increase the land value and make the land more attractive at a time. For example, if there’s a question about the property’s boundaries or potential invasion, the seller might get a survey done to help the transaction go smoother and faster.
So, the seller can pay for the land survey before selling the land to keep a smooth and transparent deal.
Cost Sharing for the Survey:
Scalice Land Surveying has found parties from both sides sharing the survey cost. This is common if both parties feel a survey is necessary, especially if the boundaries haven’t been clearly marked for a long time.
Cost sharing is also more common when both parties agree on sharing for good and are motivated to close the deal quickly. Though this might be rare unless the seller and dealer are previously acquainted.
The Lender Requires It:
If a mortgage is involved in the land selling, the lender might require a survey to confirm the boundaries and ensure there are no issues that could affect the value or legal standing of the property.
In such cases, the buyer often ends up paying, as they are the ones benefiting from the loan.
The Locality or Project Owner Pays:
Sometimes, a local government or development agency may need to do a survey to ensure compliance with zoning laws and property standards. For larger projects, the project developer may bear the survey cost as part of the overall development budget.
In short, the responsibility for paying for a land survey can vary depending on the specific situation, the type of property, and the goals of each party. Most of the time, however, the buyer covers the cost unless negotiated otherwise.
Negotiating Who Pays for a Land Survey
Since payment for the land survey is often negotiable, here are some strategies to consider:
Split the Cost: If both the buyer and seller stand to benefit from a survey, splitting the cost might be a fair solution.
Make the Buyer Pay: If you’re buying and don’t want to pay upfront, ask the seller to cover the survey cost as part of closing costs.
Seller-Side Survey: Some sellers obtain a survey before listing the property, which they can provide to the buyer. However, if this survey isn’t recent, buyers may still want their own.
Can You Reuse an Old Survey?
In some cases, buyers may ask if they can use an old survey to save on costs. While this might seem like a better idea, it can be risky. Property boundaries can shift, and legal requirements may have changed since the last survey. If the survey is over five years old, most lenders and title companies will likely require a new one.
Final Thoughts
When it comes to a land survey, knowing who pays for land survey seem unclear—but here’s why it’s worth considering as your investment. A land survey gives you undeniable clarity about your property boundaries, whether you’re buying, selling, or safeguarding your current land.
Without a survey, there is a chance you face unexpected disputes, costly legal issues, or delays with lenders or local authorities. So, a land survey clears that up, making the dealing smooth and transparent. After all, wouldn’t you want to know every inch of your property as well as the back of your hand?
FAQs
What is the average land survey cost?
The average cost of a land survey on a property varies widely but generally ranges from $500 to $1,500 or more depending on property size, location, and survey type. For simple boundary surveys on small residential lots, the cost might be lower, while larger rural or commercial properties can cost significantly more.
Is it necessary to get a land survey before buying property?
No, it’s not always recommended to get a land survey before purchasing property; it is a kind of preference for clarity. It clarifies the exact boundaries, helps avoid legal disputes, and can confirm you’re getting what you’re paying for.
Can I skip a land survey if my neighbor has one?
Well, it’s best not to rely on your neighbor’s survey, as your property’s boundaries might differ. Even if it seems redundant, having a survey tailored to your property ensures accuracy and protects your investment.
How long does a land survey take?
The time to do a land survey depends on the property size, type of survey, and local conditions. Typically, a residential property survey might take a few days to a week, while more extensive surveys on larger properties can take longer.
Can I use an old survey, or do I need a new one?
You can use an older survey if the boundaries haven’t changed and both parties agree on it. However, lenders or local authorities may still require a recent survey to ensure compliance with current standards and regulations.
Who pays surveyor fees?
In real estate transactions, surveyor fees are typically paid by the buyer, especially if the survey is part of their due diligence. However, in some cases, the seller might pay for the survey to help complete the sale, or the cost might be split between buyer and seller depending on the agreement.
When to pay for a survey?
Survey fees are usually paid upon completion of the survey. Some surveyors may require a deposit before beginning the survey, especially for larger or more complex surveys. Final payment is typically due once the surveyor delivers the survey report.
Is it normal for the buyer to pay for the survey?
Yes, it’s common for buyers to cover survey costs. Buyers often want assurance about property boundaries and conditions before completing the purchase, making it a part of their due diligence. However, in a competitive market, some sellers may choose to cover the survey cost to make their property more attractive to buyers.
