Why an ALTA Survey Matters for Small Commercial Buildings With Multiple Tenants
Buying a small commercial building sounds simple. A few tenants, a parking lot, a shared entrance. But these deals come with hidden problems.
Most of those problems show up at closing. And the main reason they show up late is that no one ordered an ALTA Survey early enough.
An ALTA Survey is not just a boundary map. For multi-tenant commercial properties in West Palm Beach, it’s the document that answers every question your lender and title company will ask before they fund the deal.
What an ALTA Survey Shows That Other Surveys Leave Out
An ALTA Survey follows rules set by the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS). The survey shows more than just property lines. For a multi-tenant commercial building, it shows:
- The exact footprint of the building relative to all parcel boundaries
- Parking spaces, driveways, and entrances with measurements
- All easements, drawn to scale
- Encroachments from or onto neighboring properties
- Setback lines from streets, alleys, canals, and utility corridors
- Above-ground and below-ground utilities, where locatable
- Any visible signs of environmental problems on site
A basic survey document shows the lines. An ALTA Survey document shows everything that affects how the property can be used.
Three Ways Multi-Tenant Buildings Create Unique Survey Complications
A single-tenant building is fairly simple to survey. A multi-tenant property adds layers that a basic survey doesn’t address.
Parking Counts That Don’t Match the Tenant Mix
Palm Beach County has rules about how many parking spaces a building must have. The number depends on what types of tenants are in the building. A retail strip mall needs more spaces per square foot than an office building.
An ALTA Survey counts the actual spaces and confirms their size and layout. If the parking count doesn’t meet county rules for your tenant mix, that problem needs to be fixed before closing, not after a tenant disputes it.
Shared Easements Left Behind From Old Subdivision History
Many small commercial properties in West Palm Beach were part of larger projects that got split up over time. That history often left behind shared easements, including:
- Cross-access easements that allow traffic flow between adjacent properties
- Shared drainage pond easements
- Utility easements that cross more than one lot
All of these need to be shown on the ALTA Survey with their exact locations verified on the ground. Your lender’s attorney will ask about every easement in the title commitment. You need a document, not a verbal explanation.
Lease Square Footage That Conflicts With What the Survey Measures
Each tenant lease describes the rentable square footage for that unit. When survey measurements don’t match the lease, lenders see it as a problem. Title companies flag it.
A good ALTA Survey shows the building footprint clearly enough to confirm that each tenant’s space matches what their lease says. If it doesn’t, that’s a negotiating point before closing.
What West Palm Beach Adds to an Already Complicated Picture
West Palm Beach has local conditions that show up on ALTA Surveys and create underwriting questions.
Palm Beach County has an active code enforcement history. Older commercial properties sometimes have additions built without permits or structures placed too close to property lines. An ALTA Survey will show whether existing improvements violate setback rules. If they do, the title insurer may not cover that condition. A lender will flag it.
SFWMD holds drainage easements across many commercial parcels in Palm Beach County. Many of those easements don’t appear on old site plans. They show up in the title commitment. An ALTA Survey maps them on the ground and confirms whether they conflict with parking areas or drive aisles.
West Palm Beach is also in a coastal flood zone area. Lenders financing commercial properties in certain FEMA flood zones require verification of the flood zone designation. An ALTA Survey includes a flood zone notation that references the correct FEMA map panel and zone. If that notation conflicts with the lender’s records, it creates a closing issue.
Frequently Asked Questions
What is an ALTA Survey?
An ALTA Survey is a detailed land survey that meets standards set by the American Land Title Association and the National Society of Professional Surveyors. It shows property lines, easements, encroachments, utilities, parking, and setbacks. Most commercial lenders require one before funding a deal.
Why do lenders require an ALTA Survey for commercial properties?
Lenders need to confirm the property matches the legal description in the loan documents. They also need to know that no encroachments or easements will reduce the property’s value as collateral. A basic boundary survey doesn’t show all of that. An ALTA Survey does.
What are ALTA Survey Table A items?
Table A is a list of optional items that a buyer or lender can add to an ALTA Survey. Examples include parking counts, setback distances, and utility locations. Your lender may require specific items. Confirm which ones before you order the survey so you don’t have to pay for a second one.
Can I use an existing ALTA Survey when buying a commercial property?
Most lenders will accept an existing ALTA Survey if it’s less than six months old and the original surveyor recertifies it for the new buyer and lender. If the survey is older, or if changes have been made to the property, order a new one.