Closing on a property in Florida without a survey can seem like a shortcut, but it carries significant risks. This article delves into why a survey is a critical component of real estate transactions, even for cash buyers, and the potential legal and financial pitfalls of skipping this essential step.
Why Surveys Are Essential in Florida Real Estate
A property survey is a vital tool in real estate closings, particularly when lenders require specific endorsements like the Florida Form 9. While not mandatory for all cash purchases, a survey provides crucial information about a property’s boundaries and the placement of structures. It helps determine if the house complies with setback lines, is situated entirely on the buyer’s property, and does not encroach on easements or neighboring land, all of which can impact marketability.
Uncovering Hidden Legal Issues
Beyond physical boundaries, surveys are critical for verifying legal rights-of-way, especially for properties near roads or waterfront areas. A survey confirms that legal access exists and that there are no gaps in access for waterfront properties. Even properties built with permits and to code can still have survey defects that may not be apparent without a professional survey.
Common Survey Defects and Their Implications
One common issue encountered in Florida is when new additions, such as pools or extensions, are built across Homeowner’s Association (HOA) Building Setback Lines (BSLs). HOAs often have regulations dictating how close structures can be to property lines. Pool companies or builders may not always check these specific HOA BSLs when obtaining permits. If a cash buyer forgoes a survey, they might be unaware of such a violation until a future sale, at which point they would be responsible for rectifying the defect at their own expense.
The Risks of Skipping a Survey
Opting out of a survey can lead to unforeseen problems. A buyer might unknowingly purchase a property with encroachments or boundary issues. These defects can affect the property’s value and marketability. If a violation is discovered later, the owner will bear the cost and effort of resolving it, which could involve legal action or costly modifications.
Key Takeaways
- Surveys are crucial for verifying property boundaries and structure placement.
- They help identify violations of setback lines and encroachments.
- Surveys confirm legal access rights, especially for waterfront properties.
- Skipping a survey can lead to unexpected costs and legal issues for the buyer.
- Consulting a real estate attorney is recommended to understand survey requirements and potential defects.
Seek Legal Counsel Before Closing
Given the variety of potential survey defects and their remedies, it is highly advisable for all buyers, including cash buyers, to obtain a survey. Consulting with a knowledgeable real estate attorney can provide clarity on the importance of surveys, common defects, and available solutions to ensure a smooth and secure property transaction.