Presenter: James D. Nadeau P.L.S., C.F.M., C.F.S. Realtor Mortgage Loan Inspections vs. Boundary Surveys Differences between MLIs and Boundary Surveys Common misconceptions about their use Breakdown of a Boundary Survey MLIs vs. Boundary Surveys What they do Mortgage Loan Inspections • Determine if dwelling or on-site improvements are in compliance with municipal/local building set back requirements at the time of construction. Boundary Surveys • Determine a parcel’s property lines based on original record documents which created the parcel & abutting parcels. • Show property/lot corners, record • Determine if on-site improvements rights of way and easements, used as loan collateral, horizontally encroachments, applicable scale in or out of a Special Flood appurtenances, lines of occupation, Hazard Area (SHFA), according to and area. FEMA’s Flood Insurance Rate Maps (FIRMS). MLIs vs. Boundary Surveys How determinations are made Mortgage Loan Inspections • Use the current locus parcel reference • Horizontal scaling of Flood Insurance Rate Maps indicate initial flood risk elevation. Boundary Surveys • Determine applicable operative deeds of the locus parcel and pertinent abutters, to create a chain of title to determine junior/senior rights, original sequencing, and original called for monumentation. Inspections vs. Surveys Definitions from Black’s Law Dictionary, 6th edition Inspection To examine, scrutinize, investigate, look into, check over, or view for … Surveys The process by which a parcel of land is measured and … MLI Sketch • They’re called “Inspections” for a reason • No evidence is shown • No records research performed • Measurements not necessarily performed • Determination is made by provided deed or reference from the title company, Realtor, or lending institution Boundary Survey • Research to determine order of lot sequence • Identify evidence in operative documents • Perform accurate measurements • Perform precise computations • Document preparation Deed Sketch MLIs vs. Boundary Surveys Who should use them Mortgage Loan Inspections Boundary Surveys • Lenders, title companies, and title • Homeowners, business owners, insurance companies representing planners, developers, engineers, a mortgage transaction, and architects, and other design investors. professionals. • NOT for private homeowner use. • NOT for contractor use. MLIs vs. Boundary Surveys How they are used Mortgage Loan Inspections • Used as tools for understanding and determining loan investment risk. Boundary Surveys • Used to identify property/lot corners • Calculate accurate area for parcel • The title insurer will provide coverage for the lender (not for the homeowner). • Findings are not recorded at county registries of deeds. • Create metes and bounds descriptions • Create a Surveyor’s report • Generate final plans that meet county registry recording requirements Mortgage Loan Inspection should ONLY be used for these 2 things: • Determine if dwelling (improvements to be used as collateral) was in compliance with municipal setback requirements at the time of construction. • Determine if dwelling is located within a Special Flood Hazard Area, based solely on horizontal scaling, no elevations are used. Statements often found on a Mortgage Loan Inspection, qualifying the product Mortgage Loan Inspections Common Misconceptions A Mortgage Loan Inspection has never been called a Class D Survey. A Class D Survey pertains to Positional Accuracy of Field Measurements. Also called a plot plan, site plan, mortgage survey. Closing statement Mortgage Loan Inspections MLIs SHOULD NOT be used for: Land Divisions/Subdivisions Land Feasibility Acreage Calculations Site Plans Building Permits Mortgage Loan Inspections MLIs DO NOT identify: Deed overlaps Junior/Senior rights Easements and Rights of Way not in current deed Any land conveyance not in current deed Typographical errors in current deed Encroachments Original boundary evidence POP QUIZ 2! Q: What is the area of a 100' x 200' parcel of land? POP QUIZ! Answer… Boundary Surveys The Breakdown Boundary Surveys Private & Public Records Research Collect information NOT recorded at the Registry of Deeds Municipal offices Abutters Other land surveyors Registry of Probate County commissioner’s office State agencies Historical societies Boundary Surveys Registry Research Perform chains of title at registry of deeds Determine: Sequence of conveyance Original called for boundary line or corner evidence Easements/rights of way Typographical errors Boundary Surveys Preparation of Deed Sketch Worksheet that identifies the various record calls along each boundary line Original deed used to identify the intent of the original grantor Evidence found relative to locative information within the deeds Differing surveyor opinions Boundary Surveys Chain of Title Locus Chain of Title for our office 1899 - Present: Portland 1871 - 1899: Deering 1814 - 1871: Westbrook Pre – 1814: Falmouth From 1814 – 1820 Westbrook was part of Massachusetts Prior to 1760 records would be located in York County. Cumberland County was not established until November 1, 1760. Also, both counties were still within the boundaries of Massachusetts until 1820. Significant Dates in Cumberland County History Portland was part of Falmouth until 1786. Yarmouth was part of North Yarmouth until 1849. Scarborough - July 14, 1658 Falmouth - November 12, 1718 North Yarmouth - 1732 Brunswick - January 26, 1739 Harpswell - January 25, 1758 Cumberland County - November 1, 1760 Lincoln County - November 1, 1760 Windham - June 12, 1762 Gorham - October 30, 1764 Cape Elizabeth - November 1, 1765 Boundary Surveys Field Recon & Instrument Location Using the deed sketch, we field locate all applicable boundary evidence, improvements, and lines of occupation (tree lines, fences, stone walls). Not uncommon to find occupation lines and record lines to be in different locations. Boundary Surveys Data Entry/Office Computations Review, validate, and verify data for mathematical accuracy Can now determine acreage, encroachments, boundary corner locations, easements, rights of way, etc. Determine deed excess and deficiency We create our professional opinion Boundary Surveys Preparation of Final Plan Depicts all rendered services, final findings, and recommendations. Should hold up to professional scrutiny in a discussion or dispute. Product is prepared in compliance with State requirements. Boundary Surveys Mark Property Corners Return to site to mark boundary corners and lines with steel rebar and survey caps. Provides notice to abutters and future surveyors that the parcel was formally surveyed. Other monuments can be placed as requested. Summary of Key Points Mortgage Loan Inspections are only to be used to determine investment risk in mortgage loan transactions. Any determinations made based on accurate measuring of the land would require a formal land survey. Permits made for development projects should never be based on an Mortgage Loan Inspection Plan. Any questions?