When it comes to the acquisition of commercial real estate, due diligence is a critical component to ensuring your project gets green lit down the road. One “checklist” item that our commercial land development attorneys recommend is an American Land Title Association (ALTA) survey. With more than 150 years of collective knowledge and understanding of real estate and zoning law and regulations, our team has a proven track record of overseeing CRE projects with the least regulatory resistance and delays possible. Learn more about the importance of the ALTA survey and why it’s critical for both project acquisition and land development processes.
What is an ALTA survey?
There are multiple types of land surveys to aid in approval of a commercial real estate project; however, an ALTA survey is the most comprehensive. Adhering to strict standards set by the American Land Title Association, this specialized and comprehensive survey not only analyzes a property’s boundaries, but also any improvements, existing easements, encroachments, and possible risks. Essentially, it serves as a boundary and title survey all in one.
Having an ALTA survey means strict standards are met and the work product is consistent. Additionally, all professional parties are familiar with this type of survey, allowing for smooth communication and shared understanding between project partners.
Why are ALTA surveys important?
To commercial real estate developers, ALTA surveys are important for a myriad of reasons. In addition, lenders and/or title insurance companies may require an ALTA as part of transactional due diligence and/or to issue certain endorsements. Specifically, ALTA surveys are beneficial for legal reasons, including:
- Title – Conducting a thorough title search and review of the property on which you seek to build your project is essential, as there may be underlying deed restrictions, easements or restrictive covenants which prohibit your proposed use (especially for adaptive reuse projects). An ALTA survey will reveal property boundaries, easement rights that may impact building opportunities, and all plottable Schedule B-II exceptions (i.e., issues your title insurance policy will not cover). An attorney can help you review title insurance and endorsement options, which may also provide additional protection against adverse claims.
- Lot Line Adjustments/Consolidations – Lot line adjustments and consolidations are legal processes that allow property owners to modify the land parcel boundaries without necessarily creating entirely new lots. While an ALTA survey is not necessary for a lot line adjustment, an ALTA can help you consider your options at hand when the lot line adjustment or consolidation is done with land development in mind.
- Outside Agency Approvals – Local, state, and federal agencies are engaged in project approvals, from permitting to environmental due diligence to tax incentives and grants. In Pennsylvania, for example, the state’s transportation department PENNDOT, as well as many municipalities, require an opinion of title. The ALTA survey is vital in providing the required opinions of the title.
As noted, beyond preparing the survey itself, the surveyor can also play a key role in commercial development projects.
Surveyors in zoning appeals
An ALTA survey is completed by a licensed professional land surveyor, or a PLS (Professional Land Surveyor). When it comes to the importance of the survey, where the rubber really meets the road (no pun intended) is in zoning appeals.
In Pennsylvania, your surveyor can serve as an effective witness for dimensional variance relief (i.e., setbacks, impervious coverage, lot and building size). Since zoning appeals are actual hearings, with testimony and legal requirements, it is particularly important that a surveyor pairs with an attorney in this setting.
When preparing for a hearing, surveyors should:
- Remember that their audience likely does not have the same credentials and deep understanding of land surveys and provide clear and non-technical responses to questions.
- Listen to the entire question or comment before responding, and then, respond only to the question posed.
- Consider use of presentation graphics, such as aerials, color coded plans, and diagrams to help the audience better understand the project.
Ultimately, when testifying before a zoning hearing board, information should be easy to follow, as well as accurate, readable, and complete. Making information easy to understand may save the surveyor time having to explain complex terms or calculations to a public audience.
Legal support for commercial land development
Ultimately, an ALTA survey is vital for both title/acquisition purposes and land development. It checks the box for due diligence while truly establishing whether or not a raw land purchase for development (or redevelopment) is even feasible. Due to the amount of information, an ALTA survey does cost more than a basic survey and can only be completed with a title commitment. That being said, we strongly recommend getting an ALTA survey to provide you, your stakeholders, and governing agencies the information needed to help mitigate risks in an acquisition to gain successful approvals.
Beyond managing ALTA surveys, our CRE attorneys work closely with our real estate clients in acquisitions, sales, land development entitlements, zoning, development financing, exchanges and all manner of real estate-related transactions. We routinely guide our clients with permitting and entitlements, taking the process through governmental approvals, and assist in overseeing development of projects, large and small, through commencement of construction and to post-development project completion.
Connect with a member of our commercial land use and real estate team to learn more!
