Survey paid IF parcel sells

Survey paid IF parcel sells

Posted by Jonathan Terry on Nov 3, 2017 7:04 pm

It has been years since I heard the term I'm seeking for a surveyor being paid for his/her survey IF and WHEN the surveyed parcel actually sells.
What is the term for this??? 
Is it illegal for a surveyor to enter into such an agreement or just bad for our profession?

Re: Survey paid IF parcel sells

Posted by mikewier on Nov 8, 2017 11:47 am

I see nothing illegal or unprofessional with only being paid if the property closes, provided however, the fee is dramatically increased (I would suggest tripling your normal fee) plus you would need to obtain the legal right to file a lien on the property. Sounds very distasteful and unrealistic. Count me out.

Re: Survey paid IF parcel sells

Posted by Richard Daniel on Nov 10, 2017 9:08 am

I also haven’t been approached with this in years, usually for subdivision lots. I don’t see anything illegal with this, but you must increase your fee. You are basically loaning the client your fee until the property closes.
 

Re: Survey paid IF parcel sells

Posted by BILLYMAC on Nov 17, 2017 11:16 am

well i would call that gambling and you pay the survey recording fee, sound like a good way to go broke, dont do it
william l. mcmonagle

Re: Survey paid IF parcel sells

Posted by BILLYMAC on Nov 17, 2017 11:16 am

well i would call that gambling and you pay the survey recording fee, sound like a good way to go broke, dont do it
william l. mcmonagle

Re: Survey paid IF parcel sells

Posted by Jim Peterson on Nov 17, 2017 11:23 am

I don't think it is illegal.  But, why would anyone do that?  Even for a higher fee?  The down side is that you DO NOT get paid.  The risk belongs with whomever NEEDS the survey.  I doubt any attorney would do this on a real estate deal. 

Re: Survey paid IF parcel sells

Posted by Jonathan Terry on Nov 17, 2017 11:49 am

OK it goes back perhaps decades, but it was a big deal then (though I've never done it or been asked to do it. I think the claim back than was that it was illegal. But... it was the term for that practice I'm trying to recall. This may have been in Connecticut circa 2000, but I'm not certain, as I obtained licensure in 8 states. It's surprising that it was such a topic of discussion back then, and so many are not aware of it. Must have been a local practice that the professional society was so concerned with. Thanks all for answering!

Re: Survey paid IF parcel sells

Posted by MICHAEL CLIFFORD_5 on Jan 22, 2018 2:58 pm

It's called a "washout survey."  I don't know anyone doing this in Massachusetts but in the 80's I would hear of it being done prior in the 50s-60s suburban boom.  It was generally considered unethical and definitely bad for the profession's reputation.

Re: Survey paid IF parcel sells

Posted by Mark on Jul 24, 2018 7:53 pm

It's illegal in Florida. What it does is, it gives you a vested interest in closing the deal. Tilting the survey towards being okay. Instead of being an independent unbiased witness. It creates the appearance of a conflict of interest. 
In real life what happens to me (I don't do washout surveys) is if the deal doesn't close for one buyer it closes for the next. I don't even know about it until I'm asked to recertify it to somebody else. I guess I do that for free, but I get paid for the survey 
Mark 

Re: Survey paid IF parcel sells

Posted by David Penturf on Jul 25, 2018 8:34 pm

I get suspicious when a client, usually a realtor, orders an SLR but has no confirmed lender or closing date (sometimes not even a buyer!!) Of course the realtor is jumping the gun, getting her ducks in a row for the commission, and has no fear of being held responsible for paying the survey tab. I've even told clients I would cut my SLR fee in half if they'd pay in advance. No one yet has taken me up on that!