Buying or selling real estate in Missouri involves several important steps before the transaction reaches the closing table. One of those steps may be obtaining a property survey. A survey identifies the property's boundaries and can reveal easements, encroachments, improvements, access concerns, and other conditions affecting the land.

When a Missouri property survey reveals a problem before closing, buyers and sellers may need to address the issue before completing the transaction. Some survey problems can be resolved relatively quickly, while others may raise questions about ownership rights, marketable title, financing, or the buyer's intended use of the property.

For buyers and sellers in Kansas City, understanding what a survey problem means can help prevent an unexpected real estate dispute from disrupting the closing.

What Can a Missouri Property Survey Reveal?

A property survey generally shows the legal boundaries of a parcel and the location of structures and certain other improvements. Depending on the type and scope of the survey, it may identify issues that were not apparent when the buyer initially viewed the property.

Common survey problems can include:

• A fence, driveway, garage, shed, or other structure crossing a property line
• A neighboring structure encroaching onto the property being purchased
• Easements affecting part of the property
• Discrepancies between the legal description and the property's apparent boundaries
• Access issues involving roads or driveways
• Improvements located within utility or other easements
• Boundary disagreements involving neighboring properties

Discovering one of these issues does not necessarily mean the transaction cannot proceed. However, buyers and sellers should understand the potential legal consequences before closing.

What Happens If There Is an Encroachment?

An encroachment occurs when a structure or improvement extends beyond a property boundary. For example, a neighbor's fence might extend several feet onto the property being sold, or the seller's driveway might partially cross neighboring land.

The significance of an encroachment depends on its location, size, history, and effect on the property. A minor encroachment might be addressed through an agreement between property owners. A more substantial boundary problem could require additional negotiations or legal action.

Buyers should be particularly cautious about accepting unresolved encroachments because the issue may become their responsibility after they acquire the property.

How Easements Can Affect a Missouri Real Estate Purchase

A survey may also reveal an easement that gives another person, utility company, government entity, or neighboring property owner certain rights to use part of the land.

Not every easement is problematic. Utility easements, for example, are common. However, an easement could become important when it interferes with a buyer's plans to construct an addition, install a pool, build a fence, or otherwise develop the property.

Buyers should determine what rights an easement creates and whether those rights affect their intended use of the property before proceeding with the purchase.

Can a Survey Problem Delay Closing?

Yes. A significant survey issue can potentially delay a Missouri real estate closing, particularly when additional documentation, negotiations, title work, lender approval, or corrective action is necessary.

For example, the parties might need time to:

• Obtain a corrected or updated survey
• Review deeds and other recorded documents
• Negotiate how an encroachment will be addressed
• Resolve a discrepancy in the property's legal description
• Obtain an easement or boundary agreement
• Determine whether a title company or lender will accept the condition

The appropriate response will depend on the purchase agreement and the specific issue uncovered by the survey.

Can a Buyer Back Out Because of a Survey Problem?

Whether a buyer can terminate a Missouri real estate contract because of a survey issue depends heavily on the language of the purchase agreement and the circumstances involved.

Real estate contracts may contain deadlines and provisions addressing inspections, title objections, surveys, contingencies, and the parties' rights when defects are discovered. A buyer should not automatically assume that discovering a boundary or easement problem creates an unrestricted right to cancel the transaction.

Missing a contractual deadline can also affect the options available. Buyers who discover a survey problem should therefore review their contract promptly before deciding how to respond.

Can the Seller Fix the Problem Before Closing?

In some transactions, the seller may be able to resolve the survey issue so that closing can continue. The appropriate solution depends on the nature of the problem.

Possible resolutions may include negotiating with a neighboring property owner, correcting documents, removing or relocating an improvement, obtaining an easement, or entering into an agreement clarifying boundary or access rights.

The buyer and seller may also negotiate another solution, such as extending the closing date while the issue is addressed. Any resolution should be properly documented rather than relying solely on informal assurances.

Why Title and Survey Issues Should Be Addressed Before Closing

Closing on a property with an unresolved survey issue can create complications later. A boundary dispute might affect a future sale, refinancing transaction, construction project, or relationship with neighboring property owners.

The issue may also involve more than the physical location of a fence or building. Survey discrepancies can raise broader questions involving deeds, legal descriptions, easements, title rights, and contractual obligations.

Addressing these concerns before ownership changes hands can provide greater clarity regarding exactly what the buyer is purchasing.

Speak With a Kansas City, Missouri Real Estate Attorney

A property survey problem does not automatically have to end a real estate transaction, but buyers and sellers should understand the issue and their contractual rights before proceeding.

At The Law Offices of Lance Loewenstein, P.C., we can provide legal assistance to individuals involved in Kansas City, Missouri real estate transactions and property disputes. If a survey has revealed an encroachment, boundary discrepancy, easement, access concern, or another issue before closing, legal guidance can help you evaluate the situation and determine the appropriate next steps.

Contact The Law Offices of Lance Loewenstein, P.C. to discuss a Missouri real estate matter and the options available before closing.