If a mortgage loan is not covered by a master title insurance policy which insures against loss due to survey-related matters, a plat or improvement survey must be provided to PennyMac.
Where surveys are not customary, the title insurance policy must insure against loss or damage by any violation, variation, encroachment or adverse circumstance which would have been disclosed by a correct survey.
The survey must be completed, dated and certified by a licensed civil engineer or registered surveyor within six months of the date the title insurance policy was issued.
PennyMac will accept a survey which is dated more than six months prior to the date of the title insurance policy if the survey is recertified by the licensed civil engineer or registered surveyor who originally performed the survey within the six months prior to the purchase of the mortgage loan by PennyMac.
The following items must be included in the survey:
- The location by courses and distances of the plot to be covered by the mortgage,
- The relation of the point of the beginning of the plot to the monument from which it is fixed,
- All easements affecting the plot, and the width of such streets;
- Any encroachments upon the plot or any easement appurtenant to the plot, and their extent measured in terms of feet and inches; and
- All structures and improvements on the plot, including the horizontal lengths of all sides and the relation of the structures and improvements by distance to all boundary lines of the plot, easements, established building lines and street lines.
The survey must also include:
- If the plot is described as being on a field map, it must contain a legend relating the plot to the map on which it appears.
- Prove the improvements lie entirely within the boundaries of the plot and no part of the improvements encroach upon or overhang any easement or right of way upon other plots.
- Prove the improvements are wholly within the established building restriction lines and no adjoining structure encroaches upon the plot or upon any dominant easement affecting the plot.
Variations between the length of the property lines as shown on the appraisal report and on the survey are acceptable provided:
- The variance does not interfere with the current use of, or any improvement on, the mortgaged property, and
- The variance in the length of the front property line and rear property line is not deficient by more than 2% or 5%, respectively.
The appraiser must include a statement regarding any other variations and explain how they affect the value of the property.
If mortgage insurance is required, the Seller must obtain a declaration from the mortgage insurer stating the variations will not affect the property’s insurability.