Surveys and Title Companies: Do You Need Them When Buying Land?

Oooh, two questions I get a lot. Do I need a survey? And should I close through a title company?

Here's how I think about both.

Surveys are awesome

A survey is when a licensed surveyor comes out with special equipment and finds the exact boundaries of your property. You can have them put stakes in the ground so you know exactly where your lot ends and your neighbor's begins. They'll give you a map on paper too.

A survey is the only way to know for sure where your corners are.

Apps that show parcel lines on your phone can get you close. Our free property maps show the lines and GPS corners too. But none of those are a survey. If you build something and you're off, you could break setback rules, or worse, build on your neighbor's land. Awkward.

A few other reasons I like surveys.

• A title company may require one.
• It can make the property easier to sell later.
• I've even heard of surveys finding a lot was bigger than the county showed.

I always recommend getting one, and it's a great first thing to spend money on once the lot is yours.

What a title company does

Closing through a title company is the safest way to do a land deal.

They research the chain of title to make sure everyone who ever owned the property had the right to sell it. That way nobody shows up later claiming it's theirs. They also hold your money in escrow, so the seller only gets paid once everything is signed and the deed is transferred.

The drawbacks

It costs money and it takes time.

• Cost. Title fees often run around a thousand dollars or more.
• A survey. They'll likely ask for one. The small lots I've had surveyed recently cost roughly $800 to $1,500. Prices vary a lot by area and size.
• Time. Usually two to four weeks, sometimes longer in counties that are slow to respond.

On a small lot, that can add up to more than the down payment before you've paid a penny toward the land.

So what should you do?

On a bigger purchase, a title company makes a lot of sense. On a small lot, a lot of buyers skip it and lean on their own due diligence, a seller with a guarantee and a survey. Either way, know what you're giving up and what you're getting.

Heads up. I'm not a lawyer, a Realtor, a title agent or a financial advisor. I'm just a guy who buys and sells a lot of land. This post is general information from my own experience, not legal, tax or financial advice. Every state, county and deal is different, so talk to a qualified professional about your situation before you make a decision.