A commercial deal can stall over something small. A buried utility line. An easement nobody caught in time. Lenders see this happen a lot. It’s one reason an ALTA survey matters so much in commercial real estate deals.

An ALTA survey gives lenders a clear picture of a property. It shows what sits on the land and what rights other people may have to use it. Without this information, a lender can’t judge the full risk of the loan. Growing commercial market, easement and utility issues come up more than buyers expect. 

Why Lenders Review Easements During ALTA Surveys

An easement gives someone other than the property owner the legal right to use part of the land. This could be a utility company. It could be a neighboring business. It could be the local government.

Lenders review easements because they can limit how a property gets used or built on. A loan tied to a property with unclear or hidden easements carries more risk. The lender needs these details before they agree to fund the loan.

An ALTA survey shows every recorded easement on the property. It also shows exactly where each one sits. This lets the lender see how much of the land is affected. It also shows whether the easement conflicts with the buyer’s plans.

Older commercial properties sometimes carry easements from decades ago. Many were never updated in public records. An ALTA survey helps confirm what’s still active and what has changed.

Utility Locations That Affect Commercial Property Decisions

Utility lines near or through a property can affect construction plans, building placement and future growth. Lenders want these locations marked clearly before they approve financing.

An ALTA survey shows above-ground and below-ground utilities that are visible during the survey. This includes water lines, sewer lines, power lines, gas lines and storm drains.

Why Utility Placement Matters to Lenders

Utility locations affect a property in several ways:

• They can limit where new buildings go
• They may require costly moves for planned work
• They can trigger new easements or agreements
• They affect long-term upkeep and access

Charlotte keeps growing, and many properties now sit near newer utility lines built for recent development. An ALTA survey confirms exactly where these lines run compared to the property lines.

ALTA Survey Details That Support Loan Due Diligence

Loan due diligence means checking that all the facts about a property are true and current before a lender funds it. An ALTA survey supports this work. It confirms physical and legal details that title work alone can’t show.

These surveys follow a shared set of rules from the American Land Title Association and the National Society of Professional Surveyors. This shared standard gives lenders steady, reliable facts no matter the property or surveyor.

Beyond easements and utilities, an ALTA survey usually confirms:

• Property boundary lines
• Building locations and setback rules
• Parking counts and site improvements
• Flood zone information
• Access points to public roads

Lenders often ask for extra optional items on the ALTA checklist. These are called Table A items. Check with your lender which ones they need. This can change based on loan type and property.

Identifying Access, Use, and Development Restrictions

Access and use rules can strongly affect how a lender views a property. A site with limited road access carries more risk than one with open, easy access.

An ALTA survey shows recorded access points, shared driveways and any rules tied to those rights. This matters, where shared access deals between neighboring businesses are common.

Development limits can come from several places. These include deed restrictions, zoning overlays, or rules from homeowner and business groups. An ALTA survey alone won’t catch every limit. Some come  from separate legal papers, not the physical site.

Ask your surveyor and title company to work together. This way, every restriction on the property shows up clearly before closing. That teamwork helps avoid surprises after the loan has already funded.

How Survey Information Helps Reduce Lending Risks

Accurate survey facts give lenders a clearer view of what they’re financing. This lowers the chance of disputes, surprise costs or legal trouble after the loan closes.

An ALTA survey helps confirm the property matches what’s written in the title papers and loan documents. When boundaries, easements and buildings all match the records, lenders can move forward with more confidence.

Problems found during the survey, like an encroachment or a hidden easement, give everyone a chance to fix the issue before closing, not after. This protects the lender, the buyer and the title company from future claims.

Survey rules can vary by lender, loan type and property use. Confirm your ALTA survey needs early in the deal. This matters most when your closing date is tight.

Frequently Asked Questions

What is an ALTA survey used for?

An ALTA survey gives detailed facts about a property’s boundaries, easements, utilities and buildings. Lenders, title companies and buyers use it in commercial real estate deals to confirm site facts before closing.

Why do lenders require an ALTA survey instead of a standard boundary survey?

ALTA surveys follow a national standard. This standard covers details lenders rely on, like easements, utility spots and flood zone facts. A standard boundary survey may not include all of this.

How long does an ALTA survey take to complete?

Timing depends on the property’s size, how tricky the site is, and how fast title records come in. Ask your surveyor for a timeline based on your project, especially if you’re working toward a closing date.