What Is an ALTA Survey and Why Do Lenders Require It
If you are buying or financing commercial property, someone has probably already mentioned an ALTA survey. It usually comes up during the review process before closing, often as a requirement from the lender or title company.
Most people at that point have the same question: what is it, and why does everyone seem to need one?
What ALTA Stands For and Where It Comes From
ALTA stands for the American Land Title Association. The survey standard it names was created together by ALTA and the National Society of Professional Surveyors. That is why you will sometimes see it written as ALTA/NSPS.
The standard exists to solve a simple problem. Property deals happen all over the country. Lenders, title companies, and investors involved in those deals are often not local. They need to know that a survey done in Alabama follows the same rules as one done in Texas or Ohio. The ALTA/NSPS standard makes that possible.
In 2026, updated ALTA/NSPS rules took effect with higher requirements for measurement accuracy and data detail. Any ALTA survey done today must meet those current standards to be accepted by lenders and title companies.
What an ALTA Survey Actually Shows
An ALTA survey is one of the most detailed property documents you can get. It covers much more than a standard boundary survey. A completed ALTA survey shows:
- The exact legal boundary of the property with precise measurements
- Where all structures sit on the property and how close they are to the boundary lines
- All easements, rights-of-way, and restrictions listed in the title commitment
- Setback lines required by zoning rules or other recorded restrictions
- Proof that the property has access to a public road or street
- Any encroachments from a neighboring property crossing onto the subject property
- Parking areas, driveways, and other improvements on the surface
- Above-ground utilities and, where requested, underground utility locations
The goal is to give the buyer, the lender, and the title company one complete document that answers all the key questions about the property.
What Table A Optional Items Are
One thing that makes ALTA surveys flexible is something called Table A. This is a list of extra items a client can ask for beyond the basic requirements. Not every deal needs every item.
Common Table A items include:
- Flood zone information, showing the property’s flood risk classification based on current FEMA maps
- Off-site easements, documenting access or utility easements that cross other properties
- Zoning classification, confirming what the land is zoned for and what rules apply
- Underground utilities, showing where subsurface lines are based on available records
- Gross land area, giving a calculated total acreage or square footage of the parcel
- Observed evidence of current use, such as business activity or storage visible during the survey
The lender or title company usually decides which Table A items are needed. The commercial property surveyor then prepares the survey to include those specific items.
Why Lenders Require an ALTA Survey
A lender putting money into a commercial property wants to avoid surprises. They want to know that the property is exactly what the purchase contract says it is.
An ALTA survey gives them that. Specifically, it tells them:
- Whether the property sits where the deed says it does
- Whether any neighboring structure or improvement crosses onto the property
- Whether any easements limit how the property can be used
- Whether the property has a clear way in and out from a public road
- Whether any part of the property sits in a flood zone that affects insurance
Without an ALTA survey, a title company cannot issue an extended coverage title insurance policy. Most commercial lenders will not approve a loan without that policy. That is the main reason ALTA surveys are required on nearly every commercial deal.
How an ALTA Survey Differs From a Standard Boundary Survey
A boundary survey finds property lines. An ALTA survey does that and a lot more. Here is how they compare:
- Standards used. A boundary survey follows Alabama state rules. An ALTA survey follows national rules that apply the same way in every state.
- Title review. Before doing any fieldwork, an ALTA surveyor reads through the title commitment and makes sure every item on it is addressed in the final survey. A standard boundary survey does not involve this step.
- Scope of work. An ALTA survey covers easements, encroachments, access, improvements, and more. A boundary survey focuses mainly on the property lines.
- Time to complete. Because of the extra research and documentation, an ALTA survey usually takes several weeks. More complex properties take longer.
- Cost. The extra work makes ALTA surveys more expensive. For commercial properties in Tuscaloosa, the cost typically runs from $2,500 to $6,000 or more depending on the size and complexity of the property.
Who Orders an ALTA Survey
In most commercial deals, the request comes from one of three parties:
- The lender, as a condition of approving the loan
- The title company, as a requirement for issuing an extended coverage title insurance policy
- The buyer or their attorney, as part of their review before closing
Sometimes all three ask for it at the same time. The survey is prepared by a licensed commercial property surveyor and then certified to every party named in the deal.
What to Expect During the Process
Once you hire a licensed commercial property surveyor for an ALTA survey, the work moves through a few clear stages.
First, the surveyor gets the title commitment from the title company. This document lists all recorded easements, restrictions, and issues tied to the property. The surveyor goes through each item and decides how it will appear on the final survey.
Next, the surveyor visits the property. They measure the boundary, locate all improvements, and document everything required by the ALTA/NSPS standard plus any Table A items that were requested.
Finally, the survey is drafted, checked, and certified. The licensed surveyor signs and seals it and certifies it to the buyer, the lender, and the title company by name.
That certified survey becomes part of the closing package and is kept by all parties as a permanent record of the property’s condition at the time of sale.