ALTA/NSPS Land Title Survey News
What to Consider when Considering Optional Table A Items
When contemplating an ALTA/NSPS Land Title Survey performed to the Minimum Standard Detail Requirements, transaction parties must also weigh the need for any additional Optional Table A Item as a part of the scope. Attached to the Minimum Standards, there is a listing of “Optional Survey Responsibilities and Specifications” referred to as Table A. Any of these items can be negotiated between the surveyor and the client if their inclusion is necessary. If there is a need for a survey related item to be included that is not within the Minimum Standard Detail Requirements or in the first nineteen Table A responsibilities, it, or multiple items can be negotiated between the client and the surveyor by defining Optional Table A Item 20 (20a, 20b, etc.) and explained within a note on the survey.
If there is a named lender for the transaction, consideration must be given to any survey requirements or guidelines they may impose. Most lenders will have specific survey requirements that cite the Optional Table A Item numbers or descriptions of what is to be included on the survey. An item in their listing such as, “the survey must include a Flood Zone Designation”, is known as Optional Table A Item 3. Also, a purchase or sales contract may cite specific survey instructions about who is responsible for ordering and paying for a survey and may include a listing of Table A items. Another consideration is to be sure the survey includes any information needed by the title company to offer specific survey related endorsements to their title policy. As an example, if the title company is providing a Zoning Endorsement, several Table A Items must be on the survey (Items 4, 6a, 6b, 7b1, 7c, 8, and 9).
When asking a surveyor to quote a project, it is important to be prepared with a listing of any optional item that will ultimately satisfy the needs of all involved parties. If the instruction for their inclusion is given once the survey work is well underway or completed, a surveyor will most likely require additional fees to revisit the site to perform additional work and the survey delivery would be delayed. Costs for the inclusion of the Table A Items can vary per item and some can extend the delivery time. If timing or cost is a concern, transaction parties may want to discuss the item and perhaps waive the requirement. NV5 Real Estate Transaction Services Project Teams are knowledgeable and can offer input to help with these matters. The NV5 Handbook for Commercial Real Estate Due Diligence includes a very helpful “User Guide to Optional Table A Items”. Within the guide, there is a detailed explanation of the surveyor’s responsibilities for each Item including the Items that cause cost or timing issues. Also discussed in the guide are the Items that correspond with specific endorsements that the title insurer may be asked to provide. Lastly, the guide includes the Table A Items specific to most lender survey requirements. Our Handbook including the User Guide can be found on our website at NV5.com/real-estate-transaction-services. Please contact us if you are interested in receiving a hard copy of the Handbook or we can be of assistance.
Environmental Testing Update
New Radon Testing Requirements Effective 6/30/23
Recently the Federal Housing Finance Agency (FHFA) announced revisions to Fannie Mae and Freddie Mac’s (the Enterprises) radon testing requirements for multifamily properties. The new standards are consistent for both Fannie and Freddie Enterprises.
Here is a summary of Radon Changes for Fannie Mae and Freddie Mac Seller/Servicers
These are slated to go into effect for loan applications received after June 30, 2023.
- Requiring radon testing at multifamily Enterprise-backed properties, regardless of the property location, subject to some exemptions and deferrals.
- Increasing the required testing from 10 percent of ground floor units to 25 percent of ground floor units.
- Requiring the environmental professional or property representative to provide tenant notifications for radon testing.
- Continuing to allow an environmental professional to manage the radon testing process.
- Providing additional guidance for lenders and environmental consultants on the Enterprises’ radon standards. As part of the guidance, the Enterprises will reenforce needs for compliance with state and local radon laws.
Listed below are loans along with areas that are not subject to radon testing:
- Refinance of properties with existing Enterprise debt that have undergone previous radon testing and mitigation (if applicable) compliant with this policy.
- Supplemental loans
- Cooperatives
- Manufactured Housing Communities
- Properties with no ground-contact residential units (including properties with ground-floor retail, first-floor amenities/leasing, or residential units above parking garages or over code-compliant ventilated crawl spaces)
- Upper floor residential units
- Any improvements that are not part of the collateral
- Properties with property-wide radon mitigation systems and with an Operations and Maintenance (O&M) plan in place
- New construction built with radon resistant measures
- When the environmental professional concludes that testing or mitigation is not necessary and documents reasons supporting this conclusion
- Small loans/Small Balance Loan (SBL) mortgages (deferred from testing until 2024, when it will be subject to reassessment).
Should you have any questions about these revisions or need for these services, please feel free to reach out to us at NV5 Real Estate Transaction Services.
50 years of Service to the Industry
May of 2023 marked the 50 year anniversary of NV5 Real Estate Transaction Services! Founded by James Bock, P.S., and Carl Clark, P.E., P.S., in Medina, Ohio, the company has grown by leaps and bounds to become the undisputed leader in providing due diligence services across the country and beyond. It took years of perfecting our process, the loyalty of all our clients and the dedication of our employees to get us where we are today.
50 years ago, Mr. Bock and Mr. Clark could not have envisioned the evolution of their company to become a leading national provider of Commercial Real Estate due diligence services. Their commitment to listening to the needs of their customers and adapting the business to serve those needs has remained. The strength and success are the employees who continue in that legacy to meet the needs of an ever-changing industry and the clients who count of NV5 Real Estate Transaction Services to deliver.
We are so appreciative of the continued opportunities we have to provide the commercial real estate industry with ALTA Surveys, Zoning Reports, and Environmental and Assessment Services, nationwide.
Please bookmark our New Website at staging.nv5.com/real-estate-transaction-services. Our section of the NV5 website offers online quote requests, showcase our educational materials including our handbook, newsletter, and blog posts, and provide general information about our services the industry has come to rely upon.
We look forward to this next chapter in our company history and appreciate the continued support of our customers. If you have any questions, please don’t hesitate to reach out to your NV5 Real Estate Transaction Services contact.
NV5 Real Estate Transactions Services
- Proud 2023 sponsor of CREW (Commercial Real Estate Women) National
- Proud 2023 sponsor of ACREL (American College of Real Estate Lawyers)