You found the perfect commercial property. The price is fair. The seller is ready. Then your lender says one word: ALTA.
Now your closing date is at risk, and you are not sure why a survey matters this much. Here is the short answer. Lenders and title companies use an ALTA survey to protect their money. Your deal cannot close without it in many commercial cases. Let’s break down why, and what you need to do about it.
Why Do Lenders Ask for One?
Lenders are not difficult. They are managing risk. When a bank lends money on commercial property, that property is collateral. If the loan fails, the lender may need to take the land and sell it.
An ALTA survey tells the lender exactly what they would be taking on. It shows if a neighbor’s fence sits on the wrong side of the line. It shows if a power line crosses the middle of a planned building site. These are not small issues. They can lower a property’s value or block future construction.
Most commercial loan agreements include a survey requirement for this reason. Fannie Mae’s Multifamily Guide commonly calls for an ALTA survey on larger commercial deals, and Freddie Mac applies comparable requirements on its own loan products. Local and regional banks often follow similar rules for their own commercial underwriting.
Why Do Title Companies Care Too?
Title companies sell insurance. That insurance protects the buyer and the lender if a property dispute shows up later. Before they write that policy, the title company wants proof the property is clean.
An ALTA survey gives them that proof. It shows whether there are unrecorded easements. It shows whether a building sits too close to a property line. It shows whether an old fence or driveway crosses onto someone else’s land.
Without this proof, the title company may add exceptions to the policy. An exception is a gap in coverage. It means the title company will not pay a claim tied to that specific problem. For a developer planning a large project, that gap can be costly later.
When Kansas Deals Almost Always Need One
Not every property purchase requires an ALTA survey. Homebuyers rarely need one. But commercial and development deals usually do, especially in Kansas markets with active growth in logistics, retail, and industrial space.
You are likely to need an ALTA survey if:
- You are buying land for new construction
- The property has multiple easements or shared access roads
- The deal involves a large loan from a bank or institutional lender
- The site sits near a floodplain or drainage area
- Multiple parcels are being combined or split
If any of these apply to your deal, ask your lender early. Do not wait until underwriting flags it.
What Happens If You Skip It?
Skipping the survey does not remove the risk. It just delays when you find out about it.
Buyers who skip an ALTA survey sometimes discover problems after closing. A shared driveway turns out to be an unrecorded easement. A loading dock sits three feet over the property line. A utility company holds rights across the back of the lot that block future expansion.
These problems are harder and more expensive to fix after the sale. An ALTA survey finds them while you still have room to negotiate or walk away.
How to Get Ready for Your ALTA Survey
You can speed up the process with a little preparation.
- Order early. A commercial ALTA survey can take one to three weeks, sometimes longer for larger sites.
- Get your title commitment first. The surveyor needs this document to plot recorded easements and exceptions.
- Share existing surveys or site plans. Past documents save time and reduce cost.
- Confirm your Table A items with your lender. Table A is the optional list of extra details, like zoning notes or utility locations. Lenders often require specific items from this list.
- Walk the property first, if possible. Point out anything unusual, like an old fence line or a shared well.
What This Means for Your Closing Table
An ALTA survey is not paperwork for paperwork’s sake. It protects everyone at the closing table, the lender, the title company, and you. If you are planning a commercial purchase, build the survey into your timeline from day one. It saves time, money, and a lot of stress down the road.
