Surveys vs. Title Insurance

Is it sufficient for a real estate agent to just insert a clause in the offer for the vendor to provide the buyer with title insurance rather than a land survey? The answer becomes clear when you consider the purpose of each.

A survey reveals the location of the buildings on the land in relation to the lot lines, along with improvements like fences, pools, easements and rights of way in favour of neighbouring owners or utility companies.

A title insurance policy, on the other hand, is simply a form of insurance which insures over any title defects that may be revealed by a survey. It is a “quick fix” which allows a real estate transaction to close in a timely fashion without any hassles, however, without a survey all you have done is delayed the discovery of any potential problems to a later date.

Title insurance, while it has its advantages, does not eliminate the need for a survey.