Commercial Lenders Must Verify Survey Currency Before Funding

April 16, 2026

When Is a Survey Too Old for a Commercial Real Estate Loan?

Madalyn Kinsey Amundsen Davis LLC + Follow Contact LinkedIn Facebook X ;) Embed For lenders making loans secured by commercial real property, a current survey is always preferred. In some transactions, however, a lender may be asked to rely on an existing survey in order to save time and expense. Whether that request can be accommodated depends on the specific risks associated with accepting a dated survey.

A borrower may agree to provide a no-change affidavit certifying that there has been no construction or other changes to the subject property since the date of the existing or dated survey. Although title companies may agree to insure over a dated survey in certain circumstances, lenders should independently evaluate whether accepting one is appropriate given their risk tolerance and exit strategy.

How Old Can a Commercial Property Survey Be?

The answer often depends on the current economic climate. When the economy is strong and financing is competitive, both lenders and title companies may be more inclined to bend their standards a bit to accept surveys that are dated. The answer to what is too old depends on many factors specific to the property and its history.

Title Company Requirements for Accepting a Dated Survey

The first level of inquiry is whether the title company will accept the survey with the support of a no-change affidavit to issue its loan title policy with the required coverage, including the desired endorsements including zoning. If the title company won’t accept the survey for this purpose, borrower will have no choice but to obtain an updated survey. However, if the title company agrees, the lender may feel compelled to also accept the dated survey.

In a recent inquiry with a prominent local Indiana title agency, the title officer stated that most underwriting guidelines in Indiana allow the title company to delete the standard survey exception on a loan title policy without a survey if:

1. There is no new construction;
2. A satisfactory vendor’s or borrower’s affidavit is provided;
3. The acreage is limited to not more than 25 acres; and
4. The existing survey is not more than 10 years old and the fieldwork is no older than two years If the title company accepts the dated survey, the lender needs to be assured that the title company will issue the required loan title policy without the standard survey exception and the title endorsements that typically require a current survey. These include the ALTA 3.1-06 zoning endorsement, the ALTA 9.3-06 endorsement (restrictions, encroachments, minerals), the ALTA 17-06 endorsement (access and entry), the ALTA 19-06 (contiguity), and the ALTA 26-06 (subdivision).

Survey Risks Not Covered by Title Insurance

Even if the title company will issue the requested loan title policy and title endorsements, the lender will need to consider other risks not covered by title insurance.

Encroachments Occurring After the Date of the Survey

Encroachments built after the survey date, particularly by an adjoining property owner, may go undetected without an accurate, current survey and fieldwork. These encroachments can become a significant headache should a foreclosure occur down the line and the lender enters into a contract to sell the property to a buyer who has concerns about them.

While minor encroachments—such as a shed or landscaping—are inconsequential, others—such as the wall of a building encroaching by several inches onto the insured property—may require the time-consuming and costly legal involvement of the lender in a foreclosure. An updated survey would have identified the encroachment before closing, allowing it to be addressed as a condition to the loan.

Easements Recorded After the Date of the Survey

Easements that come into existence after the date of the survey will be picked up by the title company and taken as exceptions on the loan title policy. But, the lender won’t know where the easements are located without a current survey.

There’s always the possibility that a new easement runs through or under the improvements, which may result in damage and/or business disruption when the easement is serviced. Whether this is consequential depends on the nature of the easement, it’s purpose, and where it’s located.

Adverse Possession and Unauthorized Use

An updated survey will reveal any use of the insured property by adverse parties, such as the owner or user of an adjoining property using portion of the insured property as a driveway. Such use is detected by the observation of the surveyor during onsite field work.

An updated survey allows the parties to address these issues properly with a license or easement prior to closing to prevent future claims of adverse possession.

Lenders Must Balance Risk When Accepting a Dated Survey

While a lender generally prefers to receive a current survey, there are circumstances under which a lender may accept a dated survey without creating material risk. Before accepting a dated survey, lenders should consider the issues stated above and always consult with the applicable title company issuing the loan title policy.

;) ;) Report

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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.
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