ALTA

The 2026 ALTA Survey Standards Are Here

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What South Carolina Real Estate Attorneys Need to Know

As of February 23, 2026, the 2026 ALTA/NSPS Minimum Standard Detail Requirements for Land Title Surveys officially replaced the 2021 standards. These updates may appear technical at first glance, but for South Carolina real estate attorneys—particularly those handling commercial transactions, development work, and lender representation—the changes carry meaningful legal and practical consequences.

The 2026 Standards reflect evolving technology, shifting risk allocation, and mounting expectations from title insurers and lenders. Attorneys who understand these changes will be better positioned to manage risk, avoid closing delays, and advise clients with confidence.

In South Carolina, ALTA/NSPS Land Title Surveys are a cornerstone of development due diligence, commercial financing and title insurance underwriting. While surveyors perform the fieldwork, attorneys are often the gatekeepers—reviewing surveys for compliance, identifying red flags, and reconciling survey matters with title commitments.

Any change to the ALTA Standards therefore ripples directly into:

  • Title objection and resolution strategies
  • Closing timelines
  • Survey exceptions and endorsements
  • Risk allocation among buyers, lenders, and insurers

The 2026 Standards were jointly adopted by ALTA and the National Society of Professional Surveyors (NSPS) in October 2025 after several years of committee work, with the stated goal of improving clarity, consistency, and adaptability.

A Clear Effective Date—with Transitional Traps

The effective date for the new standards is February 23, 2026. Any ALTA/NSPS Land Title Survey contracted for on or after that date must comply with the 2026 Standards unless the parties agree otherwise in writing. Surveys contracted before the effective date may still be governed by the 2021 Standards, even if completed later—but only if that is clearly addressed in the engagement agreement.

For attorneys, this means:

  • Engagement letters and contracts should specify which ALTA standard applies
  • “Survey updates” or revised plats may trigger new standard requirements
  • Ambiguity can expose clients—and counsel—to disputes with lenders or insurers

Technology Is Now Explicitly Embraced

One of the most forward‑looking changes is the shift from requiring information obtained strictly “on the ground” to allowing “practices generally recognized as acceptable” in both fieldwork and mapping. This expressly accommodates modern tools such as drones, LiDAR (Light Detection and Ranging), and other remote‑sensing technologies, without tying the standards to any specific method.  

For attorneys, this reinforces the need to:

  • Review surveys for completeness, not methodology
  • Understand that aerial or remote data may now support certain depictions
  • Counsel clients that innovation alone is not grounds for objection

Expanded Documentation of Possession and Occupation

Perhaps the most practically significant change is the requirement that evidence of possession or occupation be noted along the entire perimeter of the property, regardless of proximity to boundary lines. This exceeds prior standards, which often focused only on near‑boundary features.

This change:

  • Increases the likelihood that surveys will reveal fence lines, uses, or improvements suggesting potential boundary or prescriptive issues
  • Elevates the importance of attorney review and follow‑up
  • May increase survey‑related title objections and negotiation

Parol Statements Must Be Noted

Closely tied to evidence of possession and occupation, under the 2026 Standards, surveyors must note any verbal (“parol”) statements made by landowners or occupants relating to title or boundary issues.

For attorneys, this is a double‑edged sword:

  • It may surface issues earlier in the transaction
  • It also introduces non‑record information that may complicate underwriting, disclosures, and risk tolerance

These notations do not constitute legal opinions, but they should never be ignored during diligence.

Title Evidence and Research Responsibilities Are Clarified

The 2026 Standards expand guidance on how surveyors source title evidence when a current title commitment is unavailable, and they more clearly acknowledge shared responsibility between surveyors and title professionals for obtaining certain documents.

South Carolina attorneys should:

  • Provide current title commitments early whenever possible
  • Clearly communicate expectations regarding easement depiction
  • Coordinate closely with surveyors on complex tracts or non‑fee interests

Table A Gets a Notable Update

The optional Table A items remain a critical tool for tailoring survey scope. In 2026:

  • Item 15 was clarified to allow certain depictions via aerial or satellite imagery if agreed to in writing
  • A new Item 20 requires a summary table of conditions and potential encroachments on the face of the survey—intended as a factual summary, not a legal conclusion
  • The former “catch‑all” or blank item has been renumbered as Item 21

Attorneys should carefully align Table A selections with lender and client expectations.

Practice Takeaways for South Carolina Real Estate Attorneys

The 2026 Standards raise the bar—not by radical change, but by greater disclosure and clearer expectations. Attorneys should update internal checklists, educate clients, and adjust survey review practices accordingly.

FNF challenges FinCEN Rule and ALTA concurs

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In our previous blog entry, Jennifer Stone did a great job of summarizing FinCEN’s new Anti-Money Laundering Rule that is scheduled to go into effect as of December 1, 2025. In short, the Rule will generally require South Carolina real estate attorneys to make reports to FinCEN concerning every residential (1-4 Family property) transaction where 1) the grantee is an entity or trust and 2) there is no financing provided by a lender that is subject to federal anti-money laundering reporting obligations. 

The closing attorney will be on the hook (under threat of civil and criminal liability) to collect extensive information from the parties to the transaction, including the names and addresses of every person or entity who has a beneficial interest in or control over the grantee entity. Generally speaking, the collection of information is well outside the scope of the usual real estate closing and places the burden on attorneys and title companies to collect information from third parties who may not be willing to share that information.

However, there is still the possibility that the Rule will not go into effect as scheduled in December. This past May, Fidelity National Financial, Inc. (“FNF”), the parent corporation of Chicago Title, filed suit in federal court challenging the Rule and thereby taking the lead role in speaking up on behalf of attorneys and title agents in advocating for more measured, less burdensome requirements and reporting.

In the lawsuit, FNF has requested an injunction suspending FinCEN’s enforcement of the Rule. A hearing is currently scheduled to be heard on September 30, 2025.

FNF also filed a Motion for Summary Judgment to which the American Land Title Association (ALTA) recently expressed its support by filing an amicus brief. ALTA, of course, is the most prominent trade association of title insurance companies and title agents in the United States.

While FinCEN asserts that the cost to the title industry (including closing attorneys) of meeting the reporting requirements could reach as high as $600 million annually, ALTA’s brief argues that FinCEN has significantly underestimated the training and collection time necessary to comply and that the true cost to the industry will be significantly higher. ALTA argues that the this significant burden cannot possibly be outweighed by the corresponding benefit to law enforcement. ALTA points out that FinCEN drastically reduced the scope of the reporting of Beneficial Ownership Information (BOI) under the Corporate Transparency Act (which we wrote about here) in part because the new administration believed that reporting on American formed entities was of limited value to law enforcement.

ALTA further argues that the reporting burden under the Rule will disproportionately fall on small businesses that are “ill equipped” to absorb the additional costs and regulatory burden of reporting in an industry with already thin margins. I think many South Carolina residential real attorneys with already thinly stretched teams would agree wholeheartedly with ALTA in that statement. 

Certainly, there are quite a few miles to go with this lawsuit before a final verdict is rendered concerning the new Rule. We will continue to keep an eye on the progress of this case, but for now South Carolina attorneys must continue to develop procedures for complying with this Rule when it goes lives on December 1. 

Biden administration announces plans to lower housing costs

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ALTA says the attack on title insurance offers a false promise of savings

This blog never intends to discuss politics, so don’t interpret this post to take a political position. The intent is to inform real estate lawyers of news affecting our industry.

Just ahead of the State of the Union Address, President Biden announced plans to lower housing costs, calling on federal agencies to take all available actions to lower costs of consumers at the closing table and to help more Americans access homeownership. You can read the President’s Fact Sheet here.

Congress is asked to pass a mortgage relief credit that would provide middle-class first-time homebuyers with an annual tax credit of $5,000 a year for two years. Congress is also asked to provide a one-year tax credit of up to $10,000 to middle-class families who sell their starter homes, defined as homes below the area median home price in the county, to another owner-occupant. The intent of this proposal is to offset the loss of a lower interest rate when a homeowner sells. Congress is also asked to provide up to $25,000 in down payment assistance to first-generation homebuyers.

The President also proposes an expansion of the Low-Income Housing Tax Credit to build or preserve 1.2 million more affordable rental units. He also proposes a new $20 billion competitive grant fund to support communities to build more housing and lower rents and homebuying costs. Each Federal Home Loan Bank will be asked to double its annual contribution to the Affordable Housing Program. The intent will be to support the financing, acquisition, construction, and rehabilitation of affordable rental units and homes for sale.

Honestly, a lot of this seems like government-speak. We will have to wait to see the language of the actual proposals to form opinions, but lowering housing costs and providing more housing for low-income consumers is a great theory.

The one proposal that should concern practitioners is a pilot program to reduce closing costs by waiving the requirement for lender’s title insurance. At this point, the proposal only covers refinances, and the Fact Sheet indicates closing costs would be reduced by an average of $750. American Land Title Association (ALTA) issued a press release on March 7 stating that this proposal is a false promise of savings.

When I was in private practice, the cost of title insurance was less than the cost of an attorney’s opinion letter, and I believe lawyers would have to raise their charges to cover the additional liability. I’ve spoken many times and written many articles about the advantages of title insurance over title opinions, and I won’t repeat these arguments here. I am confident ALTA and title insurance companies will make those arguments plainly in opposition to this plan.

ALTA/NSPS Survey Standards have been revised

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Changes will take effect February 23, 2021

Almost every commercial transaction requires an ALTA/NSPS survey, so commercial practitioners are familiar with the most recent 2016 guidelines. Those guidelines are reviewed every five years, and a new version will be in effect beginning February 23, 2021.

You can review the new standards in their entirety, including a red-lined version, here.

The changes were made primarily to make the standards easier to understand and to correct a few inconsistencies. One change was made as a result of the 1995 U.S. Supreme Court case, Gutierrez de Martinez v. Lamagno, which held the word “shall” is a false imperative that actually means “may”. As a result, the word “shall” in the standards was changed to the word “must” to indicate an obligation or imperative.

Section 5.E was revised to clarify that the surveyor must only note observed evidence of easements, servitudes and other uses which are “on or across” the surveyed property instead of those which affect the surveyed property. This section also changes the necessity to locate utility poles within ten feet of the surveyed property from the prior requirement of five feet.

A change to Section 6.C states that if the surveyor becomes aware of a recorded easement not listed in the title evidence, the surveyor must advise the title company (in our case, the closing attorney) of the easement. If evidence of the easement isn’t provided to the surveyor, the easement must be shown or explained. This section was also revised to allow the surveyor to omit matters of record that are not survey related from the summary of title matters.

The introductory paragraph of Table A optional items has been revised to clarify that the wording of a Table A item may be negotiated. Item 6 of Table A was modified to clarify that zoning information must be provided to the surveyor. Item 11 regarding underground utilities has been simplified to two choices: (a) plans and/or reports provided by the client; or (b) markings coordinated by the surveyor pursuant to a private utility request. Item 18 (wetlands) was deleted. If a wetlands delineation is required, it must now be negotiated as an additional Table A, item 20. Item 19 was revised to allow for off-site easements appurtenant to be surveyed in their entirety.

We have a couple of weeks to become fully familiar with the new standards.

ALTA’s Board approves revision to Best Practices

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Change would require ALTA ID

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The Board of Governors of American Land Title Association approved a motion on February 21 to revise the Title Insurance & Settlement Company Best Practices to include a requirement for companies to be listed in the ALTA Registry. The amendment is under a 30-day review period ending April 12. Comments may be sent to bestpractices@alta.org.

The proposed amendment to Pillar 1 of Best Practices includes the following requirement:

  • “Establish and maintain a unique ALTA Registry Universal ID (ALTA ID) using the ALTA Registry platform for each settlement office location (subject to those business entity types supported by the ALTA Registry).

ALTA, the national trade association of the land title insurance industry, formally launched the national ALTA Registry in 2017, allowing title insurance agents and settlement companies to communicate with underwriters to confirm their company name and contact information.

Using the ALTA Registry, lenders and their vendors are able to identify title agents, title underwriters and other participants in the closing process and communicate in a timely and consistent manner throughout the mortgage transaction.

Because there has been no unique ID number used across the industry to help match provider records in different databases, communication has often been difficult and costly for the title industry and its customers. This is especially important with new regulations driving vendor oversight requirements and the need for collaboration.

The ALTA Registry is a free, searchable online database of underwriter-confirmed title agent companies and underwriter direct offices. The registered information includes the title agent’s legal entity name, location and contact information. ALTA offers a unique 7-digit identifier, the ALTA ID, which is automatically assigned to each new database record as a permanent ID number and is never changed, reassigned or reused. ALTA ID numbers are available free of charge to title agents and real estate attorneys.

ALTA’s Best Practices is designed to assist lenders in managing third-party vendors. Pillar 1 requires title companies (closing attorneys in South Carolina) to maintain licenses for doing business in the title industry. This includes the license required by the South Carolina Department of Insurance and the ALTA policy forms license. The registry helps lenders determine they are working with legitimate title providers.

ALTA develops wire fraud rapid response plan

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Dirt lawyers:  post this in your office!

alta-color-regIn this era where cybersecurity is our greatest challenge, American Land Title Association has benefited all of us in the real estate industry by developing a rapid response plan for wire fraud incidents. Two links are here, one to the plan itself and another to a response worksheet.

Many of our offices have been challenged with these incidents, and we have learned that time is of the essence. We are, in fact, hearing more and more stories where the diverted money (or some of it) actually gets returned when action is taken quickly. Every second counts! Use these resources to guide you and your staff in reacting immediately.

This plan guides offices in contacting banks, parties to the transaction and law enforcement officials at various levels. Websites for notices are included.

I recommend that you save these resources in a place where everyone in your office can access them. And I recommend that you make hard copies and post them in a central location in your office.

Be safe out there!

And thank you, American Land Title Association!

Minimum Standards Revised for ALTA/NSPS Surveys

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Celebrating the festival of Terminalia?

surveyorAmerican Land Title Association and National Society of Professional Surveyors have spent two years working on a new set of minimum standards for surveys. Their efforts resulted in the adoption of new 2016 Minimum Standard Detail Requirements for ALTA/NSPS Land Title Surveys which go into effect on February 23.  The standards can be found here.

A notable change is the title which acknowledges the merger of ASMC with NSPS. The list of atypical interests in real estate has been expanded to clearly include easements. And a surveyor should now be provided with the most recent title commitment. The term “record documents” has been abandoned in favor of referencing documents that are “to be provided to the surveyor”.

A significant change is the new duty of the surveyor to show “the location of each edge of the traveled way”, including divided streets and highways. The 2011 standards required showing the “width and location of the traveled way”. The change will require surveyors to show the width of the dedicated road in addition to the width of the asphalt.

The requirement to show water features has beefed up. Previously, surveyors were required to show springs, ponds, lakes, streams and rivers bordering or running through the property. Now surveyors must also show canals, ditches, marshes and swamps if any are “running through, or outside but within five feet of the perimeter boundary of the surveyed property.”

If a new legal description is prepared, the surveyor must include a note stating that the new description describes the same real estate as the record description, or if it does not, then the surveyor has to explain how the new description differs from the record description.

The surveyor must now show all observable evidence of both easements and utilities on his plat. Previously, there was some confusion as to whether both had to be shown.terminus 2

There are other modifications, most of which will assist surveyors while not diminishing the value of their surveyors to commercial practitioners and title insurers.

What’s the significance of the date? The Roman god Terminus protected boundary markers. The name “Terminus” was the Latin word for boundary marker. On February 23, Roman landowners celebrated a festival called Terminalia in honor of Terminus. Let’s throw a party!

American Land Title Association is Working for Us

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Letter to CFPB asks for clarity.

mountain climbers helping handAmerican Land Title Association’s January issue of TitleNews reports that ALTA reached out to the Consumer Financial Protection Bureau by letter dated Nov.23, asking for clarity in three areas of the TRID regulations.

The first area of concern is generating a great deal of angst among South Carolina closing attorneys, that is, the attempt by lenders to shift liability to settlement agents for all compliance issues, including compliance with the new federal law.

Here in South Carolina, we are seeing modified closing instructions that explicitly shift this liability to closing attorneys and often include indemnity language. The attorney is being asked to indemnify the lender for the liability the federal law has clearly imposed on lenders.

By the way, I urge South Carolina real estate lawyers to become members of the South Carolina Bar’s Real Estate Section. The Real Estate Section provides its members with access to its Listserv, which can be found at realestatelaw@scbar.org. The forum is a great place for South Carolina real estate lawyers to share ideas and frustrations as well as a place to seek information and advice from peers.

The frustration of real estate lawyers regarding this issue is obvious in that forum. It is a great place for lawyers to share their ideas as well as their frustration.

Michelle Korsmo, ALTA’s Executive Director, said in the Nov. 23 letter to the CFPB, “These instructions are in contrast to the clear public policy underpinning this rule, as well as language in the rule stating that lenders bear ultimate liability for errors on the Closing Disclosure form.” According to TitleNews, ALTA provided the CFPB with several examples of the offending closing instructions.

The second area of concern is the disclosure of title insurance premiums on the Closing Disclosure and particularly the very odd negative number that appearing for the cost of owner’s title insurance. The calculation methods of the CFPB seem to be dictating this negative number in many cases, but in what world is that logical? And how does that negative number supply clarity to consumers?

The third and final area of concern expressed ALTA’s Nov. 23 letter is the confusion surrounding seller credits on the Closing Disclosure. Lenders and closing attorneys are struggling with whether to list seller credits as individual line items on the CD or to consolidate them and disclose them under a general “seller credits” heading.

All of us in the industry should be appreciative of ALTA’s efforts to assist in this push for clarity. I urge South Carolina lawyers to join ALTA and to pay attention to and support its efforts in our behalf.

So You Say Ninety Percent of TRID Loans Contain Violations?

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Worse than rocket science? Perhaps.

thumbs downAccording to a news report from American Land Title Association, Moody’s Investors Services has written that several third-party firms found TRID violations in more than 90% of the loans that were audited.

ALTA states that Moody’s report indicates that this “informal feedback” was based on reviews of around 300 mortgages from around a dozen unidentified lenders, and that many of the violations were “only technical in nature”, like spelling errors. But Moody’s is apparently concerned that the secondary market may be affected by the sheer number of violations.

There appears to be a disconnect between this reporting and the perception of Director Richard Cordray of the CFPB. In a speech at the Consumer Federation of America, Director Cordray recently said that the housing industry’s concerns about TRID appear to have been “overblown”. He said that reports from industry participants across the market seem to be indicating that implementation of the new rule is going “fairly smoothly”. He even stated that the anxieties in the market were much like the predictions of technological disasters stemming from Y2K, which never materialized.

What do we, as South Carolina attorneys, do with this information?

  1. Take some comfort in the fact that we are not the only ones struggling with TRID.
  2. Do the best we can to comply with TRID rules.
  3. Do the best we can to comply with South Carolina Supreme Court requirements that we fully disclose all funds involved in closings. I believe we must prepare and deliver closing statements, in addition to TRID required Closing Disclosures, to make the proper disclosures. ALTA’s closing statements, which should be available on all the closing software programs, are excellent forms to use.
  4. Talk to each other about the struggles. Collectively, we should be able to resolve some of the problems.
  5. If you need backup on a position, call your title insurance company lawyers. They are hearing it all these days and may be able to help with a particular lender or an odd position.
  6. Lenders are attempting to shift the burden of compliance to closing attorneys through indemnity
    language being inserted in closing instructions or by separate letter. Closing attorneys should resist
    agreeing to this additional liability if at all possible. Negotiate! Be strong!

And if all else fails, I understand that NASA is taking applications for the next class of astronaut candidates. Maybe alternative employment is possible.

astronaut

 

More CFPB News: A Possible Deadline Extension and a Useful Toolkit

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 Don’t get excited about the rumor!

gossipWhen Steven Antonakes of the CFPB spoke to a group of consumer bankers on March 25, he initiated a series of news articles and fueled a rumor mill among bankers and others that the August 1, 2015 date for implementation of the new integrated mortgage disclosures might be extended.

Mr. Antonakes was responding to a concern that some industry vendors may not be ready for the deadline.

Here’s the quote that caused the ruckus: “To the extent there is new information or we’re hearing directly from vendors that folks aren’t going to be ready…we should continue to talk about that. I can’t promise you (changes) but to the extent we will have a better understanding of the concerns, that is something we will consider.”

Lenders and others unquestionably got their hopes up that the August 1 date would be extended. But CFPB spokesman Sam Gilford quickly stated that the bureau has no current plans to delay implementation.

And Michele Korsmo, CEO of America Land Title Association said in an ALTA Advocacy Update of March 30, “Before anyone gets excited, I am telling you today that implementation of the new Integrated Mortgage disclosures will be required on August 1st, 2015.”

 Don’t count on the deadline being extended. Get ready!

Lenders continue to hope for leniency in the enforcement for a period of time after August 1, but no strategy for lenience has been implemented to date.

In other CFPB news, the bureau recently released a “Know Before You Owe” home loan toolkit, a comprehensive step-by-step guide to help consumers understand the closing process. The toolkit contains interactive worksheets and tips for obtaining additional information. I encourage closing attorneys to use this guide to educate clients.

We have all been concerned about owner’s titletoolbox insurance being called “optional” in the new disclosures. I was encouraged to see that this toolkit contains positive information about title insurance, including the fact that title insurance can safeguard the owner’s financial investment. Common claims were stated to be outstanding taxes and mechanics’ liens.

This toolkit might be a good tool for all of us!