Real Estate Tip – Mortgage Loan Inspections: More Important Than You Think


As a buyer or tenant, if your budget does not allow for a full boundary or American Land Title Association/American Congress on Surveying & Mapping survey plan, be certain to engage a surveyor to conduct a mortgage loan inspection. Though you may think an MLI is merely a basic, low-cost way to involve a professional land surveyor in a lease or acquisition (residential or commercial), it’s more important than you think.

Consider two recent MLI sketches that moved one wall of a building closer to a boundary than it had been originally. In the first case, a municipal setback requirement was violated. In the second case, a restriction imposed by a deed in the chain of title was violated. Although there was no enforcement action for many years in either case, both the town in the first case and the neighbor in the second case did have enforcement plans. Thanks to the MLI, in case one the seller is removing and relocating a portion of the building in case two clearing the title of the violation; both at no expense to the buyer. 

For your next project, conduct an MLI to ensure the building and improvements are in their proper place on the property.  

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Bernstein Shur | Attorney Advertising

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