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How to save costs - Surveys can
add considerable cost to a housing development project. It is recommended that
you meet with a reputable survey firm and ask if they will give you a reduced
rate if the same firm handles all surveys for each property. For example, if you
pay full price for the initial survey, the firm may only charge a small fee for
the "endorsement" required by the buyer. In addition, many city planning or engineering
departments have licensed surveyors on their staffs which can be a legitimate
"in-kind" donation to your housing program and would save considerable fees. Many
nonprofit developers receive this service. It is a good contribution to the program
for the city or municipality and shows a tangible commitment of support.
Disclose - Make the surveyor aware that affordable housing often requires
several layers of financing. Prior to closing the surveyor may be asked to make
last minute modifications and provide additional copies of the revised surveys.
Make sure the surveyor is willing to conduct the survey according to HUD Standards
and is willing to sign all HUD survey certifications.
Order the survey with plenty of lead time - Most survey companies are
very busy, especially during peak real estate seasons (spring and fall). Surveys
are critical to settlements. Don't reschedule settlement because you didn't
order the survey in time!
Study the survey carefully as soon as you receive it - This is in case
of encroachment issues, etc., which could seriously delay further action, including
settlement. The survey firm should point out any problems, which should then
be referred to your attorney for a plan of action.
Make several extra copies - Although only sealed copies are acceptable
for settlement, it is a good idea to make additional copies that can be used
for any number of reasons, including giving the buyer some templates to plan
future improvements.
Make sure you give the Surveyor a copy of the Title Report - Also provide
any copies of old surveys you may already have and copies of your development
plans. Remember, the survey firm should point out any issues but the more information
you provide the less margin there is for error or oversight.