Buying property in Jamaica involves more than agreeing on a price and signing an Agreement for Sale. Before completing a purchase, buyers should carry out appropriate due diligence to help ensure that the property they are purchasing corresponds with the information contained in the relevant property documents.

One important part of this process is the Surveyor's Identification Report, commonly referred to as a Surveyor's ID Report or SIR.

A Surveyor's Identification Report is prepared by a Commissioned Land Surveyor and helps identify and assess the property on the ground in relation to the information contained in the registered title and associated plans.

The National Land Agency's Surveys and Mapping Division includes Surveyors' Identification Reports among the work carried out by land surveyors.

What Does a Surveyor's Identification Report Do?

A Surveyor's Identification Report helps establish whether the physical property generally corresponds with the property described in the title and related survey information.

Among other things, a report may identify or address:

• The property's Volume and Folio numbers
• Lot number and deposit plan information, where applicable
• The property's physical location and address
• The boundaries of the property
• The relationship between the physical boundaries and the registered boundaries
• Buildings and other structures located on the property
• Potential encroachments
• Easements or other relevant physical features
• Restrictive covenants and potential breaches

The information considered in a Surveyor's Identification Report can help a buyer better understand the relationship between the property's physical features and the registered information.

Why Is This Important When Buying Property?

Imagine you find a house you love.

The seller tells you that the property is a certain size, the boundary wall belongs to the property, and everything on the property is within its boundaries.

You visit the property and everything appears fine.

But what happens if the physical boundaries do not correspond with the registered boundaries?

Or what if part of a building, wall or other structure extends beyond the property's registered boundary?

These are the types of issues that a Surveyor's Identification Report can help bring to light.

The purpose of the report is not to suggest that every property has a problem. Rather, it can help identify potential issues before they become a bigger problem for the buyer.

What Is an Encroachment?

One of the issues a Surveyor's Identification Report may identify is an encroachment.

An encroachment occurs when a structure or improvement extends beyond the boundary of the property on which it is supposed to be located.

For example:

• A building may extend onto neighbouring land.
• A boundary wall may cross the registered boundary.
• A driveway may extend onto adjoining property.
• A neighbouring structure may extend onto the property being purchased.

These issues may not always be obvious simply by looking at the property.

A Surveyor's Identification Report can help identify whether the physical occupation of the property is consistent with its registered boundaries.

What About Restrictive Covenants?

A property title may contain restrictive covenants that place limitations on how the property may be used or developed.

This can be particularly important for someone purchasing property with plans to renovate, expand, develop or otherwise modify the property.

Where applicable, the Surveyor's Identification Report may identify apparent issues relating to restrictive covenants that should be investigated further.

What About Easements?

An easement gives another person or entity certain rights affecting a property.

One example could be a right of way providing access across part of the land.

Easements can be important to a buyer because they may affect how part of the property can be accessed, used or developed.

A Surveyor's Identification Report may identify physical features or evidence of easements that should be considered when evaluating the property.

Is a Surveyor's Identification Report the Same as a Title Search?

No.

They serve different purposes and are most useful when considered together.

A title search examines the registered land records and can provide information about matters recorded against the title, such as ownership, mortgages, caveats and other registered interests.

A Surveyor's Identification Report, on the other hand, involves examining the physical property and its boundaries in relation to the registered information.

In simple terms:

Title Search:

What does the registered record say?

Surveyor's Identification Report:

Does what we see on the ground generally correspond with that information?

Both can therefore play an important role in property due diligence.

Is a Surveyor's Identification Report Needed for a Mortgage or Loan?

If you are financing the purchase of a property, a Surveyor's Identification Report may form part of the lender's documentation requirements.

For example, JN Bank lists a Surveyor's ID Report among the house documents required as part of its mortgage process. Scotiabank Jamaica also lists a Surveyor's ID Report among additional credit-approval documents, where applicable.

Requirements can vary depending on the financial institution, the type of financing and the circumstances of the property. Buyers should therefore confirm the lender's specific requirements early in the financing process.

Why Does a Bank Want It?

A lender has a financial interest in the property being used to secure the loan.

The Surveyor's Identification Report can help provide information about the physical property and identify matters such as boundary discrepancies, encroachments or other issues that may need to be addressed.

For development financing, JN Bank has also stated that a Surveyor's ID Report may be required as part of its due-diligence process for the property being developed.

This means that if you are planning to purchase, build or develop property using financing, it is worth finding out about the survey requirements early, rather than waiting until the later stages of the loan process.

Who Prepares the Report?

A Surveyor's Identification Report should be prepared by a Commissioned Land Surveyor.

The National Land Agency maintains information on Commissioned Land Surveyors who are authorized to practise land surveying in Jamaica.

When engaging a surveyor, buyers should ensure that they are dealing with an appropriately qualified and authorized professional.

When Should You Get One?

A Surveyor's Identification Report may form part of the due-diligence process when purchasing or financing property.

It may be relevant when:

• Purchasing a house
• Purchasing vacant land
• Purchasing an investment property
• Applying for a mortgage or other property-related financing
• Obtaining financing for development
• Investigating suspected boundary issues
• Planning construction or development
• Confirming the physical location of a property
• Investigating potential encroachments

The specific requirements can vary depending on the property and transaction.

What If the Report Identifies a Problem?

Don't panic.

Finding an issue does not necessarily mean that the transaction has to end.

However, the issue should be properly investigated and addressed before proceeding.

Depending on what the surveyor identifies, the matter could involve:

• A boundary discrepancy
• An encroachment
• A restrictive covenant
• An easement
• A structure that does not correspond with the registered boundaries
• Another issue requiring further investigation

The appropriate response will depend on the particular circumstances.

A buyer should discuss significant findings with the relevant professionals before deciding how to proceed.

Don't Just Look at the Property — Investigate It

A property can look perfect from the outside and still have issues that aren't immediately visible.

That is why proper due diligence matters.

A title search helps you understand what is recorded in relation to the property, while a Surveyor's Identification Report helps you understand how the physical property corresponds with the registered information.

Together with other appropriate checks, these steps can help prospective purchasers make more informed decisions before completing a property transaction.

Need Assistance With Your Property Purchase?

At M&B Financial & Property Consultants, we assist clients with property-related searches and transaction support.

If you're considering purchasing property in Jamaica, we can help you understand the information and documentation that may be required as you move through the due-diligence process.

Contact M&B Financial & Property Consultants to discuss your property requirements.

Disclaimer

Disclaimer: This article is provided for general informational purposes only and should not be considered legal, surveying or professional advice. Property transactions involve individual circumstances and may require advice from a qualified attorney-at-law, Commissioned Land Surveyor or other relevant professional. Readers should obtain appropriate professional advice before entering into a property transaction.