Is a Property Survey Required for an Owner’s Policy
Florida title insurance underwriters do not require a new survey or an existing survey on a cash real estate transaction. Cash real estate transactions use a HUD1 settlement statement. As such, there is no government oversite with a cash transaction as there is with a financed transaction which requires an ALTA, CD, and oversite by CFPB. A property survey is not mandated by any government agency. It is a requirement of a lender. The lender requires what is known as a Florida Form 9 endorsement. This is not a survey. This can seem somewhat complicated, but it is easily explained. The lender is not a survey expert. They are experts in loaning money. They depend on the expertise of the title underwriter to insure them against risks the underwriter finds in the property survey. The lender is concerned about easements, mineral rights, setbacks, encroachments and more. That is why the underwriter needs a survey. They can’t protect against survey risks unless they have a survey. That said, a survey is required by an underwriter of title to issue a Florida Form 9 to a lender