📏 What Is a Survey / Boundary Clause in Real Estate?

A survey or boundary clause in real estate defines how property lines, easements, encroachments, and boundary disputes are handled during a home sale. It ensures the buyer understands the exact size and shape of the property and identifies any issues that could impact ownership or use.

How a Survey / Boundary Clause Works

This clause outlines whether a new property survey is required, who pays for it, and how boundary-related issues must be resolved before closing. It protects buyers from unexpected disputes involving fences, structures, or shared access areas.

Common elements include:

  • Property boundaries — confirming lot lines match what’s advertised.
  • Encroachments — when a structure crosses into a neighbor’s property.
  • Easements — rights granted to others, such as utility or driveway access.
  • Setback violations — structures built too close to the property line.
  • Responsibility — who must correct or accept boundary issues.

This clause ensures buyers know exactly what they are purchasing and gives sellers clarity about what must be disclosed or addressed.

Why the Survey / Boundary Clause Matters

Benefits for Buyers:

  • Verifies accurate property size and boundaries.
  • Identifies encroachments that could affect ownership.
  • Reveals easements that impact privacy or land use.
  • Prevents costly legal disputes after closing.

Benefits for Sellers:

  • Defines disclosure obligations clearly.
  • Reduces last-minute disputes over fences or structures.
  • Helps buyers feel confident about the property layout.
  • Ensures any issues are addressed upfront.

Example of a Survey / Boundary Clause

A purchase agreement may state:

  • The seller must provide a recent professional survey.
  • If the survey reveals an encroachment (such as a fence), the seller must correct it or negotiate with the buyer.
  • Any easements must be disclosed and accepted by the buyer.
  • If a major issue is found, the buyer may cancel the contract without penalty.

This ensures both parties know what must be resolved for the transaction to proceed smoothly.

Why It Matters for FSBO Sellers

FSBO sellers must be especially careful with boundary issues because no listing agent is guiding disclosures or survey requirements.

  • Ensures buyers understand the property lines clearly.
  • Prevents disputes over fences, sheds, or landscaping.
  • Helps avoid renegotiations during escrow.
  • Boosts buyer confidence and reduces fall-through risk.

Sellers using Flat Fee MLS through Brokerless benefit from transparent disclosures and smoother closings.

Frequently Asked Questions

Is a survey required in every real estate transaction?
Not always. Some states or lenders require one; others leave it optional.

What happens if a boundary issue is discovered?
The clause determines whether the seller must fix it, negotiate, or allow the buyer to cancel.

Do easements affect property value?
They can. Utility or access easements may impact privacy or development plans.

Can a buyer refuse to buy if an encroachment is found?
Yes, depending on the contract terms and severity of the issue.