Q&A: What is Survey Coverage and why do you need it?

    (Content generously provided by Chicago Title)

    Answer: Survey coverage is additional title insurance coverage which protects the buyer against errors on the survey. In accordance with the terms of the policy, benefits to the buyer may include coverage and payment of loss arising out of the following, unless exception to such matters is taken in the policy:

    • Dispute with adjoining landowners over location of boundary lines
    • Forced removal of improvements located across boundary lines
    • Forced removal of driveways encroaching onto adjoining property

    A buyer who does not obtain a new survey but relies on a previous survey would be well advised to purchase this coverage.

    WHAT IS THE BEST PROTECTION FOR A BUYER?

    THE BEST PROTECTION FOR A BUYER IS TO: OBTAIN A NEW SURVEY & PURCHASE SURVEY COVERAGE
    Reason: If there is an error on the survey, the Buyer may have possible recourse against the surveyor and the title company. Seller has little to no risk in this scenario.

    THE SECOND BEST PROTECTION FOR A BUYER IS TO: OBTAIN A NEW SURVEY & DO NOT PURCHASE SURVEY COVERAGE
    Reason: If there is an error on the survey, the Buyer may have possible recourse against the surveyor. Again, Seller’s risk is minimal.

    THE THIRD BEST PROTECTION FOR A BUYER IS TO: USE AN EXISTING SURVEY WITH SELLER’S AFFIDAVIT & PURCHASE SURVEY COVERAGE
    Reason: If there is an error on the survey, the buyer may have possible recourse against the seller and the title company.

    THE LEAST PROTECTION FOR A BUYER IS TO: USE AN EXISTING SURVEY WITH SELLER’S AFFIDAVIT & DO NOT PURCHASE SURVEY COVERAGE
    Reason: If there is an error on the survey, the buyer may have possible recourse only against the seller.

    WHAT IS THE BEST PROTECTION FOR A SELLER?

    THE BEST PROTECTION FOR A SELLER IS TO: HAVE THE BUYER OBTAIN A NEW SURVEY & PURCHASE SURVEY COVERAGE
    Reason: If there is an error on the survey, the Buyer may have possible recourse against the surveyor and the title company. Seller has little to no risk in this scenario.

    Chicago Title is confident that you will want this coverage due to the additional insurance at such a low price (just 5% of the basic title premium). As an example, on a $150,000 home, this additional coverage would only amount to $57.35.

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