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 InspectionsBoundary Surveys Determine if dwelling or on-site improvements are in compliance with municipal/local building set back requirements at the time of construction. Determine if on-site improvements used as loan collateral, horizontally scale in or out of a Special Flood Hazard Area (SHFA), according to FEMA’s Flood Insurance Rate Maps (FIRMS). Determine a parcel’s property lines based on original record documents which created the parcel & abutting parcels. Show property/lot corners, record rights of way and easements, encroachments, applicable appurtenances, lines of occupation, and area.

MLIs vs. Boundary Surveys How determinations are made Mortgage Loan InspectionsBoundary Surveys Use the current locus parcel reference Horizontal scaling of Flood Insurance Rate Maps indicate initial flood risk elevation. 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, 6 th edition InspectionSurveys To examine, scrutinize, investigate, look into, check over, or view for … 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 InspectionsBoundary Surveys Lenders, title companies, and title insurance companies representing a mortgage transaction, and investors. NOT for private homeowner use. NOT for contractor use. Homeowners, business owners, planners, developers, engineers, architects, and other design professionals.

MLIs vs. Boundary Surveys How they are used Mortgage Loan InspectionsBoundary Surveys Used as tools for understanding and determining loan investment risk. The title insurer will provide coverage for the lender (not for the homeowner). Findings are not recorded at county registries of deeds. Used to identify property/lot corners Calculate accurate area for parcel 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 Present: Portland : Deering : 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, Also, both counties were still within the boundaries of Massachusetts until 1820.

Significant Dates in Cumberland County History Portland was part of Falmouth until Yarmouth was part of North Yarmouth until Scarborough - July 14, 1658 Falmouth - November 12, 1718 North Yarmouth 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?