PSI Oklahoma Real Estate Practice Test

What should a mortgage company order to ensure no encroachments exist on a property?

1. A signed affidavit from the seller

2. A survey

3. Title insurance

4. A special title policy

The correct answer is: A survey

In the context of real estate transactions, a survey is a critical tool used to assess the boundaries, dimensions, and physical features of a property. When a mortgage company wants to ensure that there are no encroachments on the property, it relies on the survey to provide an accurate representation of the property’s boundaries and any structures or improvements that may extend beyond those boundaries. Encroachments occur when a structure or part of a property extends into another property, which can lead to disputes or legal issues. A survey will reveal whether any fences, buildings, or other improvements from neighboring properties overlap into the subject property or if the property itself encroaches on adjacent land. This is important for the mortgage company because encroachments can affect the property's value and its marketability. On the other hand, options like a signed affidavit from the seller, title insurance, or a special title policy do not inherently provide the same level of detail regarding physical dimensions and boundaries. While they may provide some level of protection or information, they are not substitutes for the physical verification of encroachments that a survey provides.