Do You Need a Survey to Buy a House in St. John's, Newfoundland and Labrador?

You have found a house in St. John's and someone has mentioned a survey or a Real Property Report. It is fair to wonder whether it is a legal must, a lender rule or just a nice extra, and whether it is worth the time and cost before closing.

The honest answer is that it depends on who is asking and on the property. This article explains how the pieces fit together, who tends to ask for a survey, what the registry does and does not cover, and how to raise the question early enough to act on it.

This article covers the law of Newfoundland and Labrador.

Is a survey required to buy a house?

Whether a survey is needed in a particular purchase is usually set by the people involved in the deal, not by one simple rule. Your lender, a title insurer if one is used, the conditions written into your offer and your lawyer's own review can each lead to a survey being requested. Requirements differ between lenders and between properties, so ask rather than assume.

Because of that, a survey is best treated as a question to settle before you remove the conditions from your offer. How much time you have to do that comes from the conditions in your own agreement of purchase and sale, so check the dates in it carefully.

What the Registry of Deeds does and does not tell you

A survey and a registry search do different jobs. Registration of a document is notice to anyone who later claims an interest in the land, and an instrument is treated as registered when it is delivered, if the registrar finds it compliant, which fixes the time of registration and priority. That protects the order of claims. It is not a promise about where the lot lines sit.

The Registration of Deeds Act, 2009 does not state that the registry guarantees title. It is a registry of deeds and notices that provides notice and priority. Paper documents for registration must carry an accurate written property description, and the registrar may refuse to register an instrument that lacks a legible property description. A written description is only one requirement among several, since the proper fee must also be paid, a paper document must be originally signed and witnessed by a person authorized to administer an oath or else be supported by an affidavit of execution, and the registrar must find it compliant. Even a registered description may not show you things like a fence that sits over the line or a shed built close to a neighbour.

Who is likely to ask for one

• Your lender, which may set its own conditions before releasing mortgage funds.
• A title insurer, if your lawyer arranges title insurance, which may have its own survey or document requirements.
• Your lawyer, who reviews the property description and the title and may recommend a survey if something looks unclear.
• You, if you want to confirm the lot size, the location of the house and any fences, decks or sheds before you commit.

Which of these applies to you cannot be known without the details of the property and your financing. A lawyer or your lender can tell you what is being asked in your case.

What can happen if you skip a survey

How skipping a survey affects your purchase depends on the property and your situation, so it is worth confirming with a lawyer. The risk is that you buy without knowing about a boundary problem and find out later, perhaps when you sell, refinance or build something. Because the registry is not a title guarantee, the cost of such a problem may fall on you.

On a purchase for valuable consideration, the grantor is treated as covenanting that they have full power to convey as beneficial owner and that the property is free of encumbrances except those expressly accepted. That is useful protection, but it is a different thing from a measured plan of the lot, and what it would mean for a specific boundary dispute depends on the facts.

What to do next

• Ask your lender early whether it requires a survey or Real Property Report.
• Ask your lawyer whether a survey is advisable for this property and whether title insurance is being used.
• Check the dates and conditions in your offer so you know how long you have.
• Ask the seller whether they have an existing survey or plan.
• Budget for the closing costs you can predict. A deed registration charge on a $300,000 purchase works out to $1,298.
• Consider having a lawyer prepare and register your documents. The Registry of Deeds says it is advisable to engage one to ensure compliance and facilitate registration.

If a survey turns out to be needed, build the time and cost into your plan now rather than at the last minute before closing.

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