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Mortage Identification Survey |
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When a homeowner purchases a home the purchaser receives title to a parcel of land, not title to a house. However, in taking title to the land the purchaser becomes the owner of all things on the parcel of land such as buildings and other improvements as well as trees, shrubs, etc. Likewise, when lending institutions issues the homeowner a mortgage, it is on a particular parcel of land, which is supposed to contain the house that the buyer has purchased, for security of the mortgage is in the value of the house and other improvements on the land rather than in the land itself. Occasionally an incorrect description is furnished in preparing a deed and/or mortgage for a house which the buyer has bought, and if undetected, the buyer could end up living at one location and hold title to another with the bank having a mortgage on a lot of another owner with a previous mortgage. It is therefore, of great importance to be sure that “the house” purchased is on “the lot” to be mortgaged.
There are several types of Mortgage Identification Services that we provide for the various circumstances where land is transferred and/or money is lent where the land and/or improvements to the land are the security for the loan. Choosing the right identification service for your specific transaction can be an invaluable tool for your protection.
Mortgage Identification
A Mortgage Identification should be ordered whenever land is transferred from one owner to another. The surveyor, in performing a Mortgage Identification renders a service to the Title Company and Lending Institution with a field verification of the house address and occupant with the deed description of the property, which has been furnished to the surveyor, and is used when preparing a new deed or mortgage. The surveyor field checks and certifies that the house purchased is on the lot in the deed. Additionally the surveyor checks the description for accuracy and completeness and notifies the party who ordered the identification if any irregularities are found. A plat of the property is prepared according to the deed description showing the size of the lot and any easements and building lines or restrictions of record. The house and other major improvements along with their size and location are shown on the plat. A check is made for encroachments onto adjacent properties or of adjacent properties onto the subject premises with any encroachments shown on the plat. The Surveyor does not establish the exact corners of the lot with property markers as it is not intended that this service permanently identify the property lines.
The Surveyor interviews the present owner or occupant, or tries to reach them by telephone if no one is at home at the time of his visit as an additional check to be sure that it is the right property and to check for recent work or improvements to the property that could result in a mechanics lien against the property. If anything has been done, the Surveyor reports exactly what work has been done and by who if possible. This information is reported along with a recent photograph of the house, one copy for the Title Company and the original for the Lending Institution. .
Occasionally extra copies are required or in the case of F. H. A. three views of the property may be required, if so, please indicate when ordering.
Stake Survey
A Stake Survey would consist of the same service as a Mortgage Identification except that the exact property corners would be established and monumented with iron pins or other permanent markers for identifying the property lines. The original survey plat would be filed at the County Administration Building. Two additional copies of the survey would be included for the client.
Encroachment Identification
An Encroachment Identification may be ordered when there is no exchange of ownership, for re-financing an existing mortgage, mortgaging presently owned property or adding a second mortgage, where the homeowner is borrowing against the existing land improvements and the lending institution wants verification that said improvements are situated upon said lot and do not encroach on any other land, or that adjacent properties do not encroach onto the subject premises.
An encroachment survey is done for the Lending Institution with one original affidavit identifying the improvements and certifying that they are situated o the subject premises, The type, size and location of any encroachment is noted, if any. The certification also includes a questionnaire as to who is occupying the premises and what, if any, work or improvements have been done in the past four months. There is no picture or plat.
Construction Loan Identification
A Construction Loan Identification should be ordered when money is borrowed to buy a lot and build a new house or when borrowing money to addition to an existing house. The Construction Loan Identification should be ordered when the application for a Construction Loan is taken out. Immediately after the mortgage is filed in the County Recorders Office against the parcel of land, the surveyors is notified to take the first picture. This must be done quickly to show that no work has been done or materials delivered to the site. When the lot is vacant or no work has been started and is so reported by the surveyor, his certification of this fact assures the lender of prior lien right, that is, no one could file a mechanics lien on the property at a date earlier than that of the construction loan mortgage. If anything has been done, a report of exactly what work has been performed and by who, if possible is made.
The first part of the Construction Loan Identification consist of a field visit and verification of the site against the legal description which has been provided. This is reported with a picture and plat of the property showing the existing conditions at the time of the surveyors visit with one copy for the title company and original for the lending institution.
After construction has started, usually when the contractor makes the first draw for the foundation, the surveyor is notified to make a foundation check and take a second picture. This is done to verify that work has been done, and “on the right lot”.
The second picture and plat showing the location of the foundation and any other work along with a report of what work has been done is sent to the lending institution.
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