Usually the buyer pays, but there are some exceptions
Buyers usually pay for a land survey if one is necessary, as it directly benefits them.
Sellers can offer to pay to entice buyers to move forward with the purchase.
Land surveys cost around $543, on average, and prices often fall between $376 and $768.
In many cases, a real estate transaction will require a land survey to confirm for all parties involved what parcel and improvements are included in the sale. But who pays for a land survey: the buyer or the seller? In this guide, we’ll explain who typically pays, some exceptions that might apply to your situation, when you need a survey, and more.
There’s no hard and fast rule in place dictating who pays for a land survey, but in most cases, the buyer will cover the cost.
Buyers pay because land surveys benefit them, not the seller. Many lenders will require surveys to confirm the property and improvements they’re using as collateral, so the buyer, to meet their own lender’s requirements, will pay for the survey.
Getting a land survey is also a good way for buyers to protect themselves. Surveys can show easements that may significantly devalue the property, so getting a survey done before closing is a good way to protect your investment and ensure you’re paying a fair price.
While buyers pay for land surveys in most cases, there are a few exceptions where a seller might cover the cost:
They already had a survey done: Land surveys are usually good for five to ten years, so if a seller recently had a survey done, they may just offer the results to a buyer to save them time and money. Sellers may have surveys on file to make the sale go more smoothly, if they planned on subdividing or building on the land, or to settle property line disputes with neighbors.
They want to incentivize buyers: Sellers may offer land survey results up front to make the property more appealing to buyers. Surveys can help avoid surprises after the sale of a home or even during negotiations if they uncover encroachments or easements. Having a survey up front is a good way for sellers to show buyers they’re serious about the sale and to dispel any related concerns before they even surface.
They want to close the deal: Sellers may also offer to cover the cost of a land survey if the buyers don’t have the funds to get the work done or if they’re unwilling to pay the cost. Sellers can use survey fees as negotiation tactics to keep the deal alive and agree to hire a land surveyor for the buyer.
A land survey is never a legal necessity, but there are some cases where you’ll need a survey to close. Most mortgage lenders will want verification of the property they’re accepting as collateral, so if you’re financing your home, chances are that you’ll need a land survey or a boundary survey at the very least. Some lenders won’t require one, but it may depend on your initial equity position and location.
If you’re paying for a property in cash, you don’t need a survey, but it’s a good idea to hire a local land surveyor anyway to confirm what exactly you’re buying.
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