Maryland Legal Alert for Financial Services

Recent updates from the American Land Title Association (ALTA) and the National Society of Professional Surveyors (NSPS) introduce revisions to the ALTA/NSPS Land Title Survey Standards, effective February 23, 2026. These updates are intended to improve clarity, coordination, and risk identification in real estate transactions. While many of the changes focus on surveying practices, they will have practical implications for banks and credit unions involved in commercial and residential real estate lending. 

The revised standards aim to enhance the reliability of ALTA/NSPS land title surveys, which lenders frequently rely on when evaluating collateral for mortgage loans. The updates refine requirements related to boundary identification, easements, site access, and observable improvements on the property. For financial institutions, these revisions may improve risk visibility during underwriting. More detailed survey information can help lenders identify potential issues—such as encroachments, boundary conflicts, or access limitations—earlier in the transaction process. By improving the quality and consistency of survey data, the new standards help reduce uncertainty surrounding the condition and legal status of collateral property. 

One notable change is the addition of Table A Item 20, which allows parties to request a summary of certain observed conditions on the property, including potential encroachments or other physical issues. Although surveyors are not permitted to provide legal opinions, this optional reporting item provides lenders with a clearer snapshot of potential concerns affecting the property. For lenders who frequently rely on ALTA surveys to satisfy title insurer requirements, this change may enhance the usefulness of survey documentation during the due diligence process. 

In addition to survey updates, ALTA has introduced several new and revised title insurance endorsements addressing emerging risks in real estate transactions. These endorsements include coverage related to issues such as fraudulent deed or mortgage filings and certain solar energy installations on residential properties. For financial institutions, these endorsements may provide additional risk mitigation tools to protect collateral securing mortgage loans.

In addition to survey updates, ALTA has introduced several new and revised title insurance endorsements addressing emerging risks in real estate transactions. These endorsements include coverage related to issues such as fraudulent deed or mortgage filings and certain solar energy installations on residential properties. For financial institutions, these endorsements may provide additional risk mitigation tools to protect collateral securing mortgage loans.

Practice Pointer: Financial institutions engaged in real estate lending should review internal policies and work closely with title professionals to ensure their due diligence processes align with the new 2026 ALTA requirements.

For more information concerning this topic, please contact Tamia J. Morris

Tamia J. Morris
410-576-4021 • tmorris@gfrlaw.com