Who Pays for a Land Survey: Buyer or Seller?

The payment of a land survey in a real estate transaction can often be negotiated, with either the buyer or the seller assuming the responsibility for the costs. Typically, the standard purchase and sale agreements used by most states consider the buyer to be responsible for all surveys. However, this stipulation can be modified through special provisions. When the seller agrees to pay the survey costs, it is vital that the buyer still retains the right to select a qualified survey company of their choosing. In most business scenarios, the seller is responsible for the survey, unless there is a specific reason for the buyer to pay.

negotiating land survey costs

It is important to understand that the final agreement usually hinges on the negotiation of these costs. In some jurisdictions, the standard purchase and sale agreement might explicitly state that the buyer is responsible for all surveys. This can be beneficial for the seller, especially if the property is complex and the survey could reveal issues that could affect the sale. On the other hand, the buyer may prefer to have their own survey conducted, especially when purchasing land with the intention of development or construction.

Buying Land: My Experience

From my own experience, I have always insisted on getting my own survey when purchasing land. I do not rely on any survey provided by the seller, no matter how comprehensive. I want a fresh survey to ensure the property boundaries are accurately delineated for construction plans and financing purposes. This practice also allows me to benefit from extended title insurance that safeguards against encroachments, easements, and other potential legal issues.

Why Does the Buyer Pay?

However, there are instances where the buyer might be willing to pay for a land survey. This is typically the case if the buyer is looking to purchase a property for a specific purpose, such as development or construction. In these scenarios, the buyer might want a detailed and accurate survey to mitigate risks associated with building on the land. Additionally, the buyer might want to ensure that the property does not encroach onto neighboring lands, which could lead to legal disputes in the future.

Conclusion

Ultimately, the decision regarding who pays for a land survey depends on the specific circumstances of the real estate transaction. It is prudent for both buyers and sellers to understand the implications of their financial responsibilities. By carefully anticipating potential risks and negotiating terms that align with their needs, both parties can ensure a smoother and more successful real estate transaction.

Key Takeaways

The standard agreement typically makes the buyer responsible for surveys. Buyers should negotiate to retain the right to choose their own survey company. Buyers might pay for surveys if they intend to develop or construct on the land.

Understanding these terms and negotiating them effectively can save time and money in the long run, ensuring a stress-free real estate transaction.