Buying or refinancing commercial property isn’t exactly a casual Saturday activity. There are documents to review, deadlines to meet, and more acronyms than anyone asked for. Somewhere in the middle of it all, someone inevitably says, “We’ll need an ALTA survey.”
If your first reaction is to nod confidently while secretly wondering what that means, you’re not alone.
An ALTA land survey is a highly detailed survey used primarily in commercial real estate transactions. It goes far beyond basic boundary lines and provides critical information for lenders, title companies, and buyers. But when is it actually required? And when is it simply recommended?
Let’s walk through the key situations where an ALTA survey becomes important—and sometimes absolutely essential.
First, What Is an ALTA Land Survey?
ALTA stands for the American Land Title Association. An ALTA land survey follows specific national standards developed jointly by ALTA and the National Society of Professional Surveyors (NSPS).
Unlike a simple boundary survey, an ALTA survey includes:
- Boundary lines and property dimensions
- Easements and rights-of-way
- Improvements such as buildings, fences, and utilities
- Access points and encroachments
- Zoning information (if requested)
It’s thorough. It’s precise. And yes, it takes time to complete properly.
1. Commercial Real Estate Purchases
One of the most common scenarios where you’ll need an ALTA land survey is during a commercial property purchase.
Why Buyers Require It
Commercial transactions involve higher financial stakes than residential deals. Lenders and title insurers want clear documentation showing exactly what is being purchased—and whether there are any surprises hiding in the details.
An ALTA survey confirms:
- Property boundaries match legal descriptions
- No neighboring structures encroach onto the property
- Access points are properly recorded
- Easements are accurately identified
Without it, you’re essentially relying on outdated or incomplete information.
That’s not a great strategy when large sums of money are involved.
2. Commercial Financing and Refinancing
Even if you already own the property, refinancing may trigger the need for an ALTA survey.
Lenders use ALTA surveys to assess risk. They want assurance that the collateral (the property) is free from unresolved boundary disputes, encroachments, or access issues.
It’s not about mistrust. It’s about due diligence.
If a lender is issuing a significant loan secured by real estate, they need documented clarity.
3. Title Insurance Requirements
Title insurance policies often rely on ALTA surveys to remove certain exceptions.
Without a current survey, title insurers may include general survey exceptions in the policy. These exceptions can limit coverage related to:
- Boundary disputes
- Easements
- Encroachments
An updated ALTA survey can help eliminate those exceptions, providing stronger protection for buyers and lenders.
Think of it as adding another layer of certainty to an already complex transaction.
4. Property Development and Construction
Planning to develop or significantly improve a commercial property? An ALTA survey can help identify potential obstacles before construction begins.
Identifying Encroachments and Restrictions
Developers need to know:
- Where exactly property lines sit
- Whether existing structures cross those lines
- What easements exist that might restrict building plans
Discovering these issues after construction starts is not ideal. Discovering them before permits are finalized is far better.
An ALTA survey offers that clarity upfront.
5. Property Disputes or Boundary Questions
Occasionally, disputes arise between neighboring property owners.
Fences in the wrong place. Parking areas that overlap. Utility lines crossing boundaries.
An ALTA survey provides authoritative documentation that can clarify property limits and recorded easements.
It doesn’t guarantee neighborly harmony—but it does establish facts.
6. Portfolio Transactions or Large-Scale Acquisitions
For investors purchasing multiple properties or entire commercial portfolios, standardized documentation becomes critical.
ALTA surveys provide consistent, nationally recognized reporting standards. This uniformity makes it easier for:
- Investors to evaluate risk
- Lenders to assess collateral
- Title companies to issue policies
In large transactions, consistency isn’t a luxury. It’s necessary.
7. When Zoning and Access Matter
Some ALTA surveys include optional zoning endorsements and certifications. These can confirm:
- Zoning classifications
- Parking counts
- Compliance with setback requirements
For commercial properties—especially retail, industrial, or multi-family developments—zoning compliance can directly impact property value.
Verifying this information through an ALTA survey helps avoid unpleasant surprises.
When You Probably Don’t Need One
Not every property transaction requires an ALTA survey.
Residential home purchases, for example, typically rely on simpler boundary surveys or mortgage location surveys.
ALTA surveys are most commonly associated with commercial and high-value transactions.
If you’re unsure, consult your lender or title company. They’ll usually specify survey requirements early in the process.
Timing and Planning Matter
ALTA surveys are detailed and require coordination between surveyors, title companies, and property owners.
They’re not overnight projects.
If you anticipate needing one, plan ahead. Waiting until the final days before closing can create unnecessary stress—and potential delays.
Surveyors need time to research title commitments, review legal descriptions, conduct fieldwork, and prepare documentation that meets national standards.
Clarity Is Worth the Effort
Real estate transactions are complex. Commercial ones even more so.
An ALTA land survey provides clarity. It confirms boundaries, identifies recorded easements, and documents improvements in a way that lenders and title companies trust.
You may not need one for every transaction. But when financing, purchasing, or developing commercial property, it’s often a critical piece of the puzzle.
And while it may feel like just another acronym in a long list of paperwork, the information it provides can protect you from far bigger headaches down the road.
In real estate, certainty is valuable. An ALTA survey helps deliver it.