Updated almost 11 years ago on . Most recent reply
survey and title insurance
Hey Everyone, I'm new here and new in this business. I recently purchased a detached house (40*100 irregular) and I'm going to fix and flip in few month. Do I need to get a survey and title insurance? Thanks so much for the help.
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Generally, a survey is not required for legal descriptions using a plat and lot and block title for the description, these are in neighborhoods, such as Lot Seven Block Eight of Riverside Subdivision, Orange County, ..... if you have a meets and bonds description (100' East, 40" South, 120' Westerly.... you may need a survey.
Title insurance does not cover "area or content other than that shown by a proper survey" and lenders will want that coverage if it is not platted by lot and block.
Another issue, encroachments might be suspected, but can only be shown by a proper survey and title insurance will not cover such matters not shown and rarely if shown, depends on the encroachment.
Fixing and flipping, you better get title coverage and show all your lien waivers and warrant title with construction being conducted in the past statutory period that liens may be filed. If you can show that you paid someone who files a lien your TI may cover you, otherwise it may be on you to defend. If you have construction financing, consider having the title company pay for the work, they will cover these matters.
State laws certainly vary. Ask your title company or attorney. :)