Presenting a live 90-minute webinar with interactive Q&A ALTA/ACSM Land Title Surveys Maximizing the Potential of the Feasibility Assessment Tool for Development Deals WEDNESDAY, MARCH 21, 2012 1pm Eastern 12pm Central 11am Mountain 10am Pacific Today s faculty features: James J. Brown, National Network Department Manager, Bock & Clark, Akron, Ohio Larry N. Woodard, Shareholder, Robbins Salomon & Patt, Chicago The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 10.
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ALTA/ACSM Land Title Surveys James J. Brown Bock & Clark National Survey Coordinators Akron, OH 1-800-787-8397 ext. 835 jbrown@bockandclark.com www.bockandclark.com
Today s Discussion: ALTA/ACSM Land Title Surveys 2011 Minimum Standards Question/Answers 6
ALTA/ACSM Land Title Surveys What is ALTA/ACSM? NSPS? Purpose of an ALTA/ACSM Land Title Survey Reliance on the survey by transaction parties Title commitment serves as surveyor s road map (refer to page 3 of the Handbook) 7
Minimum Detail Survey Requirements First formulated in 1962 (latest 2011- first major re-write of requirements) Outline of all surveyor responsibilities now presented in chronologic order (pages 5-10) Surveyor s Certification (page 30) Optional Table A Responsibilities (pages 11-13) User Guide for Table A (pages 14-21) 8
Highlights of Changes All of the previous surveyor s responsibilities along with some new ones are still contained therein, just repositioned to follow standard surveyor procedure. New checklist (see pages 32-35 of Handbook) 9
Highlights of Changes Standardization in wording throughout the requirements; i.e., The premises, The property, The parcel, The tract, have meant same thing in previous versions. The terms have all been standardized as The surveyed property. 10
Highlights of Changes Also made more consistent was the use of varying terms such as visible, observed, observable, and physical in earlier versions. 2011 Standards use the term observed in the process of conducting the survey wherever possible and appropriate. 11
Highlights of Changes Measurement standards have been fully incorporated into the Standards for the first time since 1986, rather than being a separate attachment. The term Relative Positional Accuracy (RPA) has been changed to Relative Positional Precision (RPP) to properly reflect what the term actually represents. The definition of RPP has also been clarified and the points involved in the analysis are now limited to the actual corners of the property surveyed. (See 3E) 12
Highlights of Changes A new section regarding digital copies (see section 8) Digital copies may be provided in addition to, or in lieu of, hard copies per the contract terms 13
Highlights of Changes Section 7 states that the survey shall bear ONLY the following certification, unaltered, except for jurisdictional requirements Refer to section 3B for exceptions 14
Highlights of Changes -Certification 15
Highlights of Changes TABLE A ITEMS See pages 11-13 of Handbook Also refer to Users Guide on Pages 14-21 16
Highlights of Changes See Highlights page for a complete listing of all Table A items that have been altered, redefined, changed and added. Major changes will be discussed 17
Highlights of Changes Table A Table A Item 2 is NEW, (was vicinity map) Now requires the addition of the address, if disclosed in documents provided to the surveyor Vicinity map is now a standard requirement (see section 6.D.i.) 18
Highlights of Changes Table A Table A Item 6 is now 6A and 6B 6A requires that the current zoning classification be provided to the surveyor by the insurer (title company) 6B adds setbacks, height and floor space area restrictions Also provided by the insurer (title company) 19
Highlights of Changes Table A Table A Item 10 is all new (was indication of access) and also includes 10A and 10B 10A refers to the relationship and location of certain party walls 10B asks the surveyor to determine if such walls (designated) are plumb 20
Highlights of Changes Table A Table A 19 is new The surveyor is to show wetlands as delineated by appropriate authorities Authorities such as; Environmental Reports 21
Highlights of Changes Table A Table A item 20 is new and also includes 20a and 20b 20a asks the surveyor to locate any improvements within offsite easements or servitudes benefiting the subject property as cited in record documents or as observed 22
Highlights of Changes Table A 20b asks the surveyor to place monuments (or reference monuments) at all major corners of offsite easements or servitudes benefiting the property as revealed in record documents 23
Highlights of Changes Table A Table A item 21 is new Client can request professional liability insurance in a specified amount Careful consideration as to the amount is necessary 24
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ALTA/ACSM Survey 27
Sample Survey Overview of survey Standardized Format Items corresponding to schedule B Significant Observations Other title blocks zoning, utility notations, flood zone determinations 28
Survey Review 29
Survey Review 30
Survey Review 31
Surveyor s Certifications 32
Property Descriptions Record descriptions Surveyor s new descriptions Title company comfort Recordation of survey plat 33
Legal Descriptions See Section 6.B.i. 34
Legal Descriptions 35
Other Handbook features Flood Zone descriptions: (see page 28) Check List: (see page 31) 36
Bock & Clark 37
ALTA/ACSM Land Title Surveys Strafford Publications Webinar Wednesday, March 21, 2012 Presented by: Larry N. Woodard ROBBINS SALOMON & PATT, LTD. 25 E. Washington St., 10 th Floor Chicago, Illinois 60602 (312) 782-9000 LWoodard@rsplaw.com
What Your Survey Says : The 2011 ALTA/ACSM Survey Standards for Real Estate Attorneys Real Estate Contract Terms Records Search Requirements (Section 4) Record Documents to Surveyor Who Provides? (not necessarily title company) What is the most recent title commitment? Need to Bifurcate Title and Survey in Contract need Title and documents of record in order to get Survey Adjoining Land: Need Title Company to provide Deeds to Adjacent Land 39
Real Estate Contract Terms Defining Current Survey Section 7, Survey Certification, requires date of field work Does lender or title company require survey 6 months from field work or 6 months from certification? Lender s or Buyer s Form Certification Section 7 only requires the unaltered standard survey certification What are the lender s requirements no more long form? Will surveyors or surveyor s insurers allow successors and assigns as part of the survey s certified parties? Can include local certification requirements under Section 7 40
Real Estate Contract Terms Form of Delivery (Section 8) Allows for digital copies: Does lender or title company require embossed seal? Zoning Information (Table A, Item 6) Title Insurer to provide zoning classification include as part of documents of record provided with title commitment Gross Floor Area (Table A, Item 7) Surveyor may need access to building interior. Surveyor s professional liability insurance (Table A, Item 21) Any party requires this? 41
Title Company v. Surveyor Legal Description Discrepancy (Section 6(B)(i)) In dueling legal descriptions, who wins? Surveyor s certification assumes a closed metes and bounds description Disclosure of Gaps and Overlaps (Section 6(B)(vii)) Does surveyor need to resolve gaps and overlaps? Plotting easements and servitudes (Section 6(C)(i) and (ii)) No definition of plottable Zoning Information (Table A, Item 6) Will Title Insurer provide zoning classification information? Does Professional Liability Insurance Need to Insure Title Company as Additional Insured? (Table A, Item 21) 42
Ordering the Survey Provide Current Title Table A Items Err on the side of over-inclusion (e.g., need Items 4, 6, 7 and 9 for 3.1 Zoning Endorsement with Parking; cache of address may be important to client (Item 2)) Become familiar with Table A and what is required for which endorsement Confirm Lender Requirements Allow Ample Time to Send to Client, Title Company and Lender for Review 43
Reviewing the Survey Compare legal description with title Review property boundaries for encroachments Review building footprint against building lines and setbacks Confirm access and curb cut to public right of way or undedicated road Confirm easements benefitting or burdening the property Lot and parcel gaps or overlaps Location of overhead and underground utilities Review surveyor s notes Confirm Surveyor s observed property conditions Are all easements plotted? Flood zone? Evidence of underground tanks or conditions? 44
LARRY N. WOODARD ROBBINS, SALOMON & PATT, LTD. Larry Woodard is a shareholder in the Real Estate Group and chair of the Construction Law Group of Robbins, Salomon & Patt, Ltd., in Chicago, Illinois. Larry has represented Fortune 500 companies, private developers, condominium associations, units of local government, investors, landlords, tenants, private REITs and syndications in the development, financing, leasing, zoning, acquisition or disposal of their real estate interests. His practice also extends into general business transactions and governance, construction and mechanics lien litigation and asset protection. He has experience negotiating and documenting a broad range of transactional matters, including letters of intent, asset and stock sales, joint ventures, buysell agreements, operating agreements, partnership agreements and nondisclosure agreements. Larry is a real estate developer and investor and is an Illinois licensed real estate broker and Illinois licensed real estate brokerage instructor. He is a periodic speaker and contributor on the subject of real estate law to numerous publications and is the General Editor for Illinois Institute for Continuing Legal Education s (IICLE) ILLINOIS CONDOMINIUM LAW handbook. 45
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