A lot of people do not want to spend money on a new survey when buying property yet they would not dream of buying it without a title policy. Did you know that a title policy is like insurance and it is the only type of insurance that is planning on never having to pay?
Don't get me wrong. I am not knocking title policies. If you have a mortgage the lender is going to require that you have a title policy. I would not by property without one, but lets look at what the title policy is doing for you.
The title policy guarantees that the person selling you the property has the right to sell it to you. For example, If I sell you a piece of property the title policy guarantees that I actually own it and have the right to sell it. It does not guarantee a quantity of land being sold and it does not identify any conflicts that might exist on the property.
A survey will take a legal description from a deed and identify that property on the ground. The deed may call a property to be 5.00 acres but when the survey is conducted on the ground it may be more or less than 5.00 acres. It could be a very old description that was not surveyed well or there could have been a mistake on a previous survey. A survey can also show any conflicts between the subject deed and adjoining deeds and can show easements on the ground and those that are described on paper. The title policy will identify these items on thier schedule "B".
The smart money is to combine a current title policy and a current survey. That way the title policy will guarantee that a person has the right to sell and a current survey gaurantees what is being sold. A title policy without the current survey may not be worth a whole lot.
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