What Happens If an ALTA Survey Finds an Access Problem?

An ALTA survey can stop a commercial real estate deal in its tracks. When an access problem turns up, buyers, lenders, and title companies all have to pause and figure out what to do next. Understanding what these problems look like, and how to fix them, can save a transaction and protect a long-term investment.

How an ALTA Survey Can Reveal Access Issues That Were Not Obvious Before

Difference between physical access and legal access

These are not the same thing. A property may have a road leading to it, a gate, even a paved parking lot entrance. None of that means the owner has a legal right to use it.

Legal access means there is a recorded document, usually an easement or a right-of-way, that gives the property owner the right to enter and exit the parcel. Without that document, the access may not hold up in court or in a lender’s review.

Why a driveway or road does not automatically create legal access

A driveway shared between two properties, or a road crossing neighboring land, may have been used for decades. That history alone does not create a legal right. In Arkansas, courts evaluate claims of prescriptive easement based on open, continuous, and hostile use over time. Even then, those rights may not be recorded, and a lender may not accept them.

Common access problems discovered during an ALTA survey

• No recorded easement for an existing access route
• Access crossing land owned by a third party with no documented agreement
• A landlocked parcel with no access to a public road
• Conflicts between a recorded legal description and how the property is actually used
• Shared driveways with no formal agreement in place

Why these issues often remain unnoticed until a transaction begins

Property owners sometimes assume access is settled because nothing has caused a dispute. The problem surfaces when a lender, title company, or new buyer looks at the recorded documents and finds a gap. An ALTA survey brings those gaps to light with precision.

Why Access Problems Can Delay a Commercial Real Estate Closing

Lender concerns when access rights are unclear

Most commercial lenders require clear and documented access before they will fund a loan. If the ALTA survey shows the property depends on an unrecorded road or an informal arrangement with a neighbor, the lender will typically put the file on hold. This is not a minor technicality. It can push a closing back by weeks or longer.

Title company review of access-related matters

Title companies look at the survey alongside the title commitment. When access is uncertain, they may add exceptions to the policy or decline to insure access altogether. That makes the property harder to finance and harder to sell later.

Requests for additional documentation

Once an issue appears, the parties usually need to gather additional materials. That might include easement agreements, court records, plats, neighbor affidavits, or updated legal descriptions. Collecting all of that takes time.

Impact on transaction timelines

In commercial real estate deals, access problems are among the more common causes of delayed closings. Even when everyone wants to move forward, the legal and title work required to fix the problem has to happen before closing can proceed.

The Different Types of Access Problems Found During an ALTA Survey

Landlocked parcels

Some parcels have no connection to a public road at all. The property may have been subdivided in a way that left it with no legal access. A developer who purchases a landlocked parcel without knowing this faces serious obstacles before any project can begin.

Missing recorded access easements

The access route exists on the ground, but no easement was ever recorded. Without that recorded document, the right to use the route is not legally protected.

Access routes crossing neighboring property

A driveway or entrance may cross land owned by someone else. If that neighbor sells, changes their mind, or disputes the use, the access can be cut off. A recorded easement eliminates that risk.

Unrecorded roads and shared driveways

Informal arrangements between prior owners are common in Arkansas, especially in rural areas. These informal setups often have no written agreement and no recorded instrument. They work until they do not.

Conflicts between recorded documents and actual site conditions

Sometimes the recorded plat or deed shows one access point, but the actual entrance is in a different location. That conflict must be resolved before a transaction can close cleanly.

Options for Resolving Access Problems Before the Transaction Moves Forward

Obtaining a new access easement

If the right does not exist in writing, it needs to be created. An attorney can draft and record a new easement agreement between the parties. This gives the property owner a documented right that will hold up with lenders and in court.

Correcting legal descriptions

Some access problems trace back to a legal description that was drafted incorrectly or that became outdated after a boundary change. A licensed surveyor can work with an attorney to correct the description and update the recorded documents.

Working with adjoining property owners

When access crosses neighboring land, the neighbor has to agree to any easement. That negotiation can be straightforward or complicated depending on the relationship between the parties. Starting early is always better.

Updating title documentation

The title commitment may need to be revised once the access issue is resolved. The title company will want to see the recorded easement or corrected documents before removing the exception and issuing a clean policy.

Resolving issues before financing and development plans proceed

Developers who catch access problems early have room to negotiate, fix the issue, and still move the project forward on a reasonable timeline. Developers who discover the problem late often face delays, added legal costs, or a deal that falls apart entirely.

Why Finding an Access Problem Early Is Better Than Discovering It After Closing

Reduced legal risk

A buyer who closes without resolving an access issue may end up in a legal dispute with a neighbor or a lender. That is far more expensive than fixing the problem before closing.

Better negotiating position for buyers

An access problem can affect what a property is worth. A buyer who finds the issue early can ask the seller to resolve it, reduce the price, or provide an escrow holdback until the matter is settled.

Fewer surprises during development

Developers need legal access confirmed before they can obtain permits, begin grading, or arrange utility service. Discovering an access gap after closing can shut a project down before it starts.

Improved lender and title company confidence

Lenders and title companies want to see that access has been clearly documented. When a buyer can show that the ALTA survey identified an issue and that issue was properly resolved, it builds confidence in the transaction.

Long-term protection for property owners

Recorded access rights stay with the property. They protect future owners, lenders, and tenants. Resolving the issue once, correctly, is the clean solution.