In the intricate world of real estate transactions, clarity and assurance are paramount. Whether you're a seasoned homeowner or a first-time buyer, you've likely encountered the term "Improvement Location Certificate" (ILC) when navigating the labyrinthine processes of buying a property. While it may seem like just another bureaucratic hurdle, an ILC plays a pivotal role in ensuring a smooth and secure real estate transaction. So, why would a lender or title company require one? In this post, we will attempt to briefly unravel the significance of ILCs, exploring the reasons behind their necessity and the peace of mind they bring to all parties involved in real estate dealings in the event you're asked to get one. Improvement Location Certificate (ILC) First, what is an ILC? An Improvement Location Certificate depicts any visible improvements that may encroach onto the subject property from the adjacent properties or from the subject property onto the adjacent properties. Distances from the property line will be shown for all major structures. However, an Improvement Location Certificate does not constitute a boundary survey, therefore no property corners will be set and it should not be used or relied upon for any construction or future improvements to the property. More simply stated, and ILC is like an inspection of a parcel by a licensed surveyor to determine possible encroachments or other matters that could be adverse from a land surveying standpoint. It is important to keep in mind an ILC is not technically a survey, and should not be used as such. It does not locate exact boundaries. It does not establish property corners. It is not to be legally relied upon for locations of property lines or future improvements. The ILC provides a document that shows a bird's eye view of a property, summarizing deeded boundary dimensions, and approximate improvement locations, among other things. It is essentially a drawing of a parcel of real property prepared by a licensed surveyor that shows the location of improvements to, and easements across the property; as well as encroachments onto the property by improvements located on adjoining properties. Ultimately, the ILC will be delivered to you via PDF.  When does a title company require an ILC? If you're buying residential real estate and you're required to get an ILC, it's likely at the request of either your lender, or the title company. It's also possible that a buyer could request an ILC from a seller, especially when there is concern that the boundary lines of a property have been encroached upon by a neighbor.  According to an article published in March 2023 by Land Title Guarantee Company (Land Title), there are a few circumstances when an ILC will be called for as a requirement to issue a title insurance policy: Significant Renovation or New Construction If the home is being flipped, Land Title would likely require an ILC to ensure that the new home conforms to the building envelope or setback lines relevant to the property. OEC (Owners Extended Coverage) If an OEC is being purchased, we may require a survey in order to identify certain exceptions, including boundary issues. If there is no survey coverage being offered on the property, a title company will not require a survey. Large Acreage The typical rule is that 5 acres or more requires a survey. Fence lines can cause boundary issues that can be extensive or expensive to fix. Unusual Terrain If the property is mountainous, hilly, or contains bodies of water, then a survey may be necessary as these features may be used as boundaries and can shift over time. Complicated Legal Descriptions If the legal description is metes & bounds, rather than a simple lot, block, subdivision, we may require a survey to confirm the property boundaries. Most Commercial Properties Vacant, Unplanted Lots A Land Survey Plat may be required. Areas with Known Issues Prior boundary/survey claims on a subject or neighboring properties. In older communities with known, consistent issues (happens sometimes in older towns established through mining claims, etc), Please note: Do not rely upon Title Company Requirements when making the decision about recommending a survey. There are many instances in which a survey could be critical to avoiding problems for the buyer post-closing, but there will be no title company requirement. How much does an ILC cost? An "ILC" in a typical residential neighborhood in the Denver Metro Area, described by lot and block, will cost around $350. Characteristics such as lot size and location, terrain, age of the subdivision, or a metes and bounds legal description could all affect the total cost. Bottom Line In the complex tapestry of real estate transactions, the Improvement Location Certificate emerges as a crucial thread, weaving together the interests of lenders, title companies, and property buyers. It serves as a vital tool in guaranteeing the accuracy of property boundaries, safeguarding investments, and mitigating potential risks. By demanding an ILC, lenders and title companies not only protect their financial stakes but also offer invaluable reassurance to homebuyers, fostering transparency and trust in the real estate industry. As you venture into the realm of property acquisition, remember that behind the seemingly mundane document lies a world of security and certainty, ensuring that your dream home is founded on a solid and unshakeable basis. Let us know how we can help you handle ordering and deciphering a survey, should you be required to obtain one for your property purchase.    

When it comes to the real estate industry, knowledge is power. Whether you're a prospective buyer, seller, or a real estate professional, understanding the various types of property surveys is essential for making informed decisions and ensuring a smooth transaction. In this blog post, we'll explore some of the fundamental property surveys that can make a significant difference in your real estate journey. From the meticulous ALTA/NSPS Land Title Survey to the precise Improvement Location Certificate (ILC), we'll briefly delve into each survey's purpose, scope, and importance. By the end of this article, our hope is that you'll have a clearer understanding of these crucial surveys and their roles in real estate transactions. A local surveyor will ultimately be your best place for the right recommendation, but this should help you begin your conversation. ALTA/NSPS Land Title Survey: A Closer Look The ALTA/NSPS Land Title Survey, standing for the American Land Title Association and National Society of Professional Surveyors, is a comprehensive and highly detailed survey that plays a pivotal role in commercial and private property transactions. This survey aims to provide consistency and uniformity to the title industry by capturing a wealth of property information. From property lines and boundaries to real property details like easements, encroachments, liens, and land ownership data, an ALTA/NSPS survey leaves no stone unturned. Whether you're buying or selling property, this survey ensures that you have a thorough understanding of the property's characteristics, minimizing the risk of potential complications down the road. Land Survey Plat: Unraveling Property Boundaries A Land Survey Plat is a valuable tool for establishing property boundaries. It involves determining property corners and is essential for both existing tracts of land and new parcels containing 35 acres or more. This survey provides a precise legal description of the property, offering a visual representation of its boundaries. When it comes to property transactions, having a Land Survey Plat can be crucial for ensuring that everyone involved is on the same page regarding property lines and dimensions. Boundary Survey: Defining Property Boundaries A Boundary Survey is a formal method for defining property boundaries, with a primary focus on identifying the corners of a parcel of land. It is typically commissioned before buying, dividing, improving, or building on land. Professional surveyors perform boundary surveys to ensure that property lines are accurately established. Since precision is paramount in such surveys, hiring a professional is strongly recommended to avoid potential disputes or complications in the future. Improvement Location Certificate (ILC): Highlighting Property Improvements An Improvement Location Certificate (ILC) serves a unique purpose in property transactions. It depicts visible improvements that may encroach onto the subject property from adjacent properties or vice versa. While it provides information about distances from the property line for major structures, it's important to note that an ILC does not constitute a boundary survey, set property corners, or establish property boundaries. It's a useful document for understanding property improvements but should not be relied upon for legal or construction purposes. Bottom Line In the world of real estate, knowledge is your greatest asset. Understanding the key types of property surveys, can empower you to make well-informed decisions. Each survey serves a specific purpose and offers varying levels of detail and legal significance. Whether you're a buyer, seller, or real estate professional, being aware of these differences can help you navigate real estate transactions with confidence and clarity. For more in-depth information on the distinctions between these surveys, be sure to check out our dedicated blog post on the topic. Your journey to real estate success begins with a solid understanding of the tools at your disposal.