State of Maine Chapter of IAAO November 16th, 2012 Mortgage

Report
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:
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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
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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
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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?

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