State of Maine Chapter of IAAO November 16 th , 2012 Mortgage Loan Inspections vs . Boundary Surveys

1. State of Maine Chapter of IAAONovember 16th, 2012Mortgage Loan Inspections vs. Boundary Surveys Presenter: James D. Nadeau P.L.S., C.F.M., C.F.S. Realtor

2. Mortgage Loan Inspections vs. Boundary Surveys • Differences between MLIs and Boundary Surveys • Common misconceptions about their use • Breakdown of a Boundary Survey

3. MLIs vs. Boundary SurveysWhat they do

4. MLIs vs. Boundary SurveysHow determinations are made

5. Inspections vs. SurveysDefinitionsfrom Black’s Law Dictionary, 6th edition

6. 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

7. Boundary Survey • Research to determine order of lot sequence • Identify evidence in operative documents • Perform accurate measurements • Perform precise computations • Document preparation

8. Deed Sketch

9. MLIs vs. Boundary SurveysWho should use them

10. MLIs vs. Boundary SurveysHow they are used

11. Pop Quiz 1: 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.

12. Statements often found on a Mortgage Loan Inspection, qualifying the product

13. Mortgage Loan InspectionsCommon 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

14. Mortgage Loan Inspections MLIs SHOULD NOT be used for: • Land Divisions/Subdivisions • Land Feasibility • Acreage Calculations • Site Plans • Building Permits

15. 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

16. POP QUIZ 2! • Q: What is the area of a 100' x 200' parcel of land?

17. POP QUIZ! Answer…

18. Boundary SurveysThe Breakdown

19. Boundary SurveysPrivate & 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

20. Boundary SurveysRegistry 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

21. Boundary SurveysPreparation 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

22. Boundary SurveysChain of Title

23. Locus Chain of Title for our office • 1899 - Present: Portland • 1871 - 1899: Deering • 1814 - 1871: 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, 1760. Also, both counties were still within the boundaries of Massachusetts until 1820.

24. Significant Dates in Cumberland County History • Portland was part of Falmouth until 1786. • Yarmouth was part of North Yarmouth until 1849. • Scarborough - July 14, 1658 • Falmouth - November 12, 1718 • North Yarmouth - 1732 • 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

25. Boundary SurveysField 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.

26. Boundary SurveysData 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

27. Boundary SurveysPreparation 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.

28. Boundary SurveysMark 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.

29. 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.

30. Thank you! Any questions?