Mortgage Loan Inspections:
Mortgage Loan Inspections or “M.L.I.’s,” sometimes known as “Class D surveys” or “plot plans,” have been in common use since the mid- 1980’s, primarily by title attorneys and title insurance companies. The M.L.I. is based on a land surveyor's examination of the current legal (or “deed”) description of the parcel and a site visit. Little if any research is performed, measurements are usually rough, and no monumentation is set. This work usually results in a sketch showing substantially less detail than do most boundary survey maps. Its primary purposes are 1). to depict any apparent encroachments onto or off of the parcel; 2). to determine whether the parcel seems to conform with the dimensional requirements (setbacks etc) of local land use ordinances; and 3). to determine whether the structures on the parcel lie within a flood hazard zone as shown on the federal flood (FEMA) maps.
It is important to understand that the M.L.I. sketch is primarily intended for title insurance review purposes and that an M.L.I. is NOT a boundary survey or any type of “survey.” An M.L.I. does not represent a professional opinion as to boundary location. Therefore the M.L.I. is not suitable for use in writing new legal descriptions or for any purpose requiring the determination of the true location of the parcel boundaries.