You’re weeks from closing a commercial deal. The ALTA survey comes back. There’s a problem.

Now you have a decision to make, and not a lot of time to make it.

This happens more than most developers expect. ALTA surveys are built to be thorough. They’re designed to catch things that basic boundary surveys miss. And when they do catch something, the transaction stops moving until someone figures out what to do next.

Here’s what that process actually looks like.

What an ALTA Survey Is Looking For

An ALTA/NSPS Land Title Survey is the most detailed property survey used in commercial real estate. Lenders and title companies require it because it goes far beyond a simple boundary check.

It covers:

• Exact boundary locations
• Easements and rights-of-way (recorded and unrecorded)
• Encroachments from neighboring structures or improvements
• Zoning classifications and setback requirements
• Flood zone status
• Access to public roads
• Utility locations and on-site improvements

Each one of those categories can come back with a problem attached.

The Problems ALTA Surveys Most Commonly Uncover

Encroachments

A neighbor’s fence cuts into your parcel. A building overhang crosses the property line. A shared driveway has no recorded easement to back it up.

These are encroachments. On older commercial properties, they’re surprisingly common. Lenders treat them as unresolved risk. They won’t fund until the issue is addressed.

The fix depends on severity. Minor encroachments sometimes get handled through a boundary line agreement between the two property owners. Serious ones may require legal action or structural changes.

Easement Conflicts

An easement gives a third party the right to use part of your property. That right runs with the land. It doesn’t disappear when ownership changes.

The conflict shows up when the easement sits exactly where you planned to build. Say you’re developing a mixed-use structure. The survey reveals a utility easement cutting through your planned footprint. That easement isn’t moving. Your plans have to.

Some easements appear in the title search before the survey. Others only show up once someone physically measures the land. ALTA surveys are set up to catch both.

Zoning Violations

A prior owner added a structure without permits. The property is being used in a way that doesn’t match its zoning classification. The existing improvements exceed what zoning allows.

Any of these make the property a legal liability. Lenders flag them. Title companies won’t insure around them. You have to resolve them before closing, or negotiate who will.

Gaps and Overlaps in the Legal Description

The deed says the property runs in one direction. The survey shows something different. That’s a gap or overlap. It means the legal description in the recorded deed doesn’t match physical reality.

Title can’t transfer cleanly until it’s corrected. That typically involves a corrective deed, coordination between surveyors and attorneys, and a title company willing to re-examine the record.

What Happens After the Problem Is Found

The deal doesn’t automatically fall apart. Most issues that surface on an ALTA survey can be resolved. It takes time and negotiation, but there’s usually a path forward.

Here’s how it typically plays out.

Step 1: The surveyor documents the issue. Problems are noted directly on the survey drawing and in the surveyor’s certification. Everything is in writing, which is what you need.

Step 2: You loop in your attorney and title company immediately. Don’t try to manage this alone. Your real estate attorney needs to review what was found and what it means for the transaction timeline.

Step 3: The parties negotiate a resolution. Depending on the issue, common options include:

• Seller resolves it before closing
• Purchase price is reduced to reflect the risk
• An escrow holdback covers future resolution costs
• The title company issues an exception or endorsement
• The deal timeline is extended to allow for cure

Step 4: If no resolution is reached, you decide whether to walk. Most commercial purchase contracts give buyers a right to exit when title issues can’t be cleared within a set period. Know what your contract says before that conversation starts.

When It Actually Kills the Deal

Some problems don’t have a clean resolution. A major encroachment where the neighboring owner won’t negotiate. A title defect with conflicting chain of ownership going back decades. A development restriction that makes your project financially unworkable.

When that happens, it’s better to know now.

A survey that costs a few thousand dollars can expose a problem worth several times the purchase price. Developers who skip thorough due diligence because they’re confident in the deal are the ones who end up in litigation after closing.

What to Do Before the Survey Comes Back

Don’t wait to be surprised. Go into the transaction prepared.

• Pull all recorded easements and deed restrictions from the title search before the survey is done
• Review every Table A item your lender requires so you know what’s being checked
• Talk to your surveyor early, not just when the finished drawing shows up
• Have your attorney look at the draft survey before you formally accept it

The earlier you spot a problem, the more room you have to deal with it. Finding something in week two of due diligence is a negotiation. Finding it in week seven is a crisis.

Frequently Asked Questions

Can you still close if an ALTA survey finds a problem?

Yes, in many cases. It depends on what the problem is and how serious it is. Minor issues often get resolved through negotiations, title endorsements or purchase price adjustments. Unresolvable title defects or major encroachments may delay or end the deal.

Who is responsible for fixing problems found on an ALTA survey?

That’s negotiated between buyer and seller. There’s no automatic rule. Most commercial contracts address who carries the burden of cure, but read your specific agreement carefully before assuming anything.

How long does it take to resolve an ALTA survey problem?

It varies widely. A boundary line agreement between cooperative neighbors might take two to three weeks. A title defect requiring a corrective deed or court action can take months. Get your attorney’s estimate early.

Does a survey problem affect title insurance?

Yes. The title company will require resolution before issuing a clean policy, note it as a policy exception, or offer an endorsement if the risk is manageable. Ask your title officer which applies to your situation and what it means for coverage.

What’s the difference between a survey problem and a title problem?

They overlap. The ALTA survey physically measures the property and everything on it. Title problems are legal defects in recorded ownership documents. A survey can reveal something that creates a title problem, like a boundary discrepancy that contradicts the recorded deed description.