What role do surveys play in real estate transactions?

Surveys play a critical role in real estate transactions by establishing property lines and boundaries. This is essential for both buyers and sellers, as it provides clarity on the exact limits of the property being transferred. Knowing the boundaries helps prevent potential disputes with neighboring properties and ensures that the buyer understands what they are acquiring. This information is often required during the closing process to confirm that the property being sold meets the described specifications in legal documents.

In contrast, the other options do not accurately reflect the purpose of surveys. For instance, while the purchase price of a property may be influenced by its location and size as determined by a survey, surveys themselves do not define the price. Surveys are also not limited to commercial properties; they are commonly conducted for residential properties as well. Lastly, verifying homeowners' insurance coverage is unrelated to the function of surveys, as insurance verification typically involves assessing risk factors and coverage adequacy rather than boundary lines.