A surveyor kneels at the back corner of a commercial lot with a metal detector. He finds an iron pipe eight inches from where the fence sits. That eight inches can stall a multimillion-dollar closing for weeks.
This happens more often than most buyers expect. An ALTA survey doesn’t just draw lines. It digs into deed records, physical evidence, and title documents at the same time. When those three don’t match, something has to give.
Here’s what actually happens next, step by step.
The Problems an ALTA Survey Actually Turns Up
Most people picture a fence in the wrong spot. That’s only one issue on a long list.
Common problems include:
- Legal description gaps or overlaps. The written deed doesn’t line up with the deed next door, leaving a sliver of land claimed by nobody, or by both owners.
- Undisclosed or expired easements. A utility company or neighbor has rights to use part of the land, but the paperwork was never recorded or has lapsed.
- Setback and zoning violations. A building sits closer to the property line than local code allows.
- No legal access. The parcel doesn’t touch a public road on paper, even if a driveway seems to lead there.
- Fence or improvement lines that don’t match the deed. The physical fence, hedge, or driveway sits somewhere other than the actual boundary.
None of these mean the deal is doomed. They just mean someone has to look closer before signing anything.
How a Flagged Issue Moves From the Surveyor’s Desk to the Title Company
The surveyor doesn’t make legal calls. That’s not the job. Once a problem is found, it gets noted directly on the plat and in the survey report, with measurements and a plain description of what was found.
That report goes to the title company. The title team compares it against the title commitment, the document that lists everything the title insurer plans to cover or exclude. If the survey shows something the title commitment didn’t account for, the title company has to decide what to do with it.
This handoff is where most delays start. Not because surveyors work slowly, but because title companies need time to research old records, prior surveys, and recorded documents before making a call.
Survey Exceptions: What Gets Added to Your Title Commitment
If the title company can’t confirm the issue is minor or already resolved, it adds a survey exception to the title commitment.
A survey exception is a line item that says, in effect, “this coverage does not apply to this specific problem.” It protects the title insurer, not the buyer.
For a cash buyer, an unresolved exception might be something they choose to accept. For a buyer using a lender, it’s usually a dealbreaker until it’s cleared. Lenders want a clean title. An open survey exception tells them there’s unresolved risk sitting on the property.
Ways an ALTA Survey Problem Gets Resolved
Most issues have a fix. Few require a lawsuit. The common paths are:
- Boundary line agreement. Neighboring owners sign a document agreeing on where the line actually sits, then record it with the county.
- Survey affidavit. A sworn statement, often from the seller, explaining a minor discrepancy so the title company can insure around it.
- Negotiated price or closing adjustment. The buyer and seller agree on a credit or price change to account for the issue.
- Easement amendment. An existing easement gets updated or formally recorded to match reality.
- Physical removal. A fence, shed, or driveway gets moved back onto the correct side of the line.
Which path makes sense depends on how serious the problem is and how much time the deal has left before closing.
Can Closing Still Happen With an Unresolved Issue?
Sometimes, yes. A problem doesn’t automatically kill a deal. It just changes the terms.
Options that keep a closing moving include:
- Escrow holdbacks. Money is set aside at closing to cover the cost of fixing the issue later.
- Seller indemnification. The seller agrees in writing to cover any losses if the issue causes a problem down the road.
- Delayed funding. The lender simply won’t release funds until the exception is cleared, pushing the closing date back rather than canceling it.
The people involved decide how much risk they’re willing to accept. A small fence encroachment might get waived. A missing legal access point rarely does.
FAQ
Does finding a problem on an ALTA survey mean the sale falls through?
Not usually. Most issues get resolved through negotiation, paperwork, or a title endorsement instead of ending the deal.
Who decides if a survey issue is serious enough to stop closing?
The lender and title company make that call. They look at how the issue affects title insurability, not just how it looks on paper.
What’s a survey affidavit, and how does it fix a problem?
It’s a sworn statement, often from the seller, explaining a minor discrepancy. It lets the title company insure over the issue without ordering a new survey or going to court.
Can the buyer request a price reduction if the ALTA survey finds an issue?
Yes. Buyers often negotiate a credit or ask the seller to fix the problem before closing.
Does an encroachment always have to be physically removed?
No. Sometimes an easement, a licensing agreement, or a title endorsement solves it without moving anything.
