An ILC locates property corners per the legal description

Dec 05, 2023

One of the contingencies in a Colorado real estate contract reads "New ILC or New Survey Deadline."

What is the difference between an improvement location certificate, or ILC, and a survey? And why might one be important to both buyer and seller?

An American Land Title Association, or ALTA, survey is more commonly required for the purchase of a commercial or development property.

This is an incredibly detailed survey that as well as identifying the boundaries of a property also calls out physical features, evidence of possession, fences and other items that could indicate adverse possession. The court can easily run into thousands of dollars.

For most residential transactions, a survey of lesser standard and expense is sometimes required to reassure a lender or title company that the property in question does not encroach into easements, setbacks or boundary lines.

This is where an ILC comes into play.

An ILC will locate the corners of the property per the legal description and note the location of any improvements on the property relevant to the boundaries. This, in turn, helps confirm clean title to the property.

So, should you consider getting an ILC for your residential property? In some cases, the decision will be taken out of your hands, as it may be a requirement of the title company or lender.

If not, it still may be worth considering obtaining one. It can be helpful, and reassuring, to have a visual representation that shows you exactly where your property boundaries are, how the improvements sit in relation to those property lines, and whether or not a fence actually sits on the property line.

An ILC can also alert you to potential issues that are easier and better dealt with before closing. For example, that shed you thought was on your side of the boundary actually sits halfway across the neighbor's, or the garage you were planning to build will not fit within code-required setbacks.

Considering whether or not to obtain an ALTA survey or ILC for your next property purchase is something worth discussing with your Realtor prior to submitting a formal offer.

Mellsop is a board member of the Realtors of Central Colorado.

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