Please send questions/comments you may have about the
standards to NSPS Executive Director Curt Sumner via email at curtis.sumner@nsps.us.com. Responses will be posted in NSPS News and
Views.
Question:
I have a general question regarding the preparation of
ALTA/ACSM Land Title Surveys that always concerned me. What is considered a
“current” title binder? All of my contracts state that the client will provide
me with a current title binder with the supportive referenced documents, prior
to the completion and issuance of the survey. Even though I engage in doing my
own research for the project as well, I will not issue the final survey until I
can review the title binder being prepared for the closing.
In the past, some clients will send me what I consider to be
an out of date binder (more than 6 months since it was issued), to which I will
always request an update to, or a letter from the title company, stating that
the binder is still in force and that there have been no updates or additions
to it since its last issuance. Some clients have sent me 6, 8, or 10 year
old title binders and insisted that this is what is to be used for the
preparation of the current ALTA/ACSM Land Title survey.
Of course I object and then the question always comes up as
to “what is considered a current title binder?” Is there some language
that ALTA/ACSM has that defines that? If so, can you please share some?
Answer:
The standards do not address what is “current” and do not
need to because they refer to the “most current,” not “current.”
I personally suggest that surveyors should take what the
client provides as “most current” (which is what the standards call for, not
“current”) regardless of how old it is. I do not think it is up to
surveyors to tell clients that they have to get new title work, although
if the title work is “old” (whatever that means to the individual surveyor),
the surveyor should advise the client that there may be burdens on the property
that (1) might not be reported in old title work; (2) could adversely affect
use of the property; and (3) will not be reflected by their survey.
The surveyor isn’t responsible to be concerned about whether
the binder is still in force, it is not their issue. Pursuant to the ALTA/ACSM
Standards, the survey needs to reflect the name of the title company,
commitment (binder) number, and the date of the commitment; this protects the
surveyor from burdens/easements that may affect the property that were not
reported in the title work provided. I think the date of the title work
and whether or not it is still in force is a title insurance issue between the
lender, the client, and the title company.
Lastly, other than in some New England states where surveyors
are required to do their own easement research, I personally don’t think
surveyors should undertake easement research themselves. It seems
to me that they may be taking on liability that does not belong to them.
If title work is old, I think surveyors would be well-advised to limit their
comments to advising the client that they should consider getting an up-to-date
commitment.
As an aside, I do find it funny when a client provides old
title work and says that they will not be ordering any new title work. I
always laugh to myself and think “At least not until the lender insists on it!"