How are property boundaries and surveys handled during a mortgage transaction in Alabama?

@chelsea 

In Alabama, property boundaries and surveys are handled during a mortgage transaction through a few steps:

1. Preliminary Title Search: Before a mortgage transaction begins, a preliminary title search is conducted by the lender to identify any potential issues with the property's ownership and boundaries. This search helps ensure that the property can be legally transferred.
2. Survey: An updated survey of the property may be required by the lender during the mortgage transaction. The survey helps determine the exact boundaries of the property and identifies any encroachments or discrepancies.
3. Title Insurance: The buyer is typically required to purchase title insurance during the mortgage transaction. This insurance policy protects the buyer and the lender against any potential losses related to boundary issues, survey discrepancies, or other title defects.
4. Review by the Lender: Once the survey is completed and the title insurance policy is obtained, the lender reviews the documents to ensure that the property boundaries are accurately represented and that there are no significant issues affecting the mortgage transaction.
5. Closing Process: During the closing process, the final survey and title insurance documentation are presented to the buyer for review and acceptance. Any concerns or discrepancies regarding the property boundaries can be addressed at this stage.

It is important for buyers to review all survey documents, title insurance policies, and related documentation to ensure that the property boundaries are clearly defined and accurate before completing a mortgage transaction in Alabama. If any issues or disputes arise, it is recommended to consult with a licensed professional, such as a real estate attorney or a licensed surveyor, for guidance.

@chelsea 

Please note that while this information is based on general practices in Alabama, mortgage transactions can vary depending on the specific circumstances and requirements of each transaction. It is recommended to consult with a local real estate attorney or mortgage professional for more specific and up-to-date information related to your individual situation.