What is an Improvement Location Certificate (ILC)?
An ILC is part of the contract to buy and sell. More and more, title companies and mortgage companies are requiring ILC's for all real estate transactions.
An ILC is prepared by a licensed surveyor. A visit to the property is made and all improvements (house, sheds, driveways, barns, etc.) are located and measurements are taken. Any easements, right-of-ways and setbacks, if shown on the recorded plat or listed in the title commitment, are also accounted for. The ILC does not take the place of a boundary survey which is needed to install fencing or construct buildings or additions. The ILC will not locate any unrecorded easements or rights-of-way unless that information is provided by the title company, real estate agent or seller.
This document is an inexpensive insurance policy for the title company and buyer to identify any potential issues with the property.
Click here to see a sample ILC.
Where can I get a property legal description?
The true and accurate legal description of real property can be found on the property deed. All real property owners receive a copy of the deed from the county in which this property is located, after the deed has been officially recorded. Additional copies can always be ordered from the county clerk and recorders office at any time, typically for a small fee.
The assessor's website shows: TRACT F, THOMPSON VALLEY 1ST, LOV
Complete and valid legal description per plat and recorded deed: TRACT F, THOMPSON VALLEY FIRST SUBDIVISION TO THE CITY OF LOVELAND, COUNTY OF LARIMER, STATE OF COLORADO
Why do you need the title commitment?
The title commitment has all of the information needed to setup and complete and ILC, including names of Buyer, Seller, Banks, Title Company file number, etc. It also includes the legal description that is being recorded with the county for the transfer of ownership.
The title commitment also includes specific requirements and exceptions for the title insurance which will often include easements, right-of-way agreements, covenants that are sometimes recorded with the county, but sometimes are a gentleman's agreement between prior property owners and their neighbors. Information that is not recorded with the county will not be shown on the ILC unless that information is provided in the title commitment. When an ILC is a requirement of the title insurance company, there can also be requirements as to who the ILC is certified to.
Can an ILC be used to install a fence?
No . In order to verify property line locations for installing a fence or constructing any other improvements, a boundary survey must be done.
Is an ILC the same as a survey?
No . An ILC is not a survey. It is a surveyor's expert analysis after on-site inspections and measurements, that the buildings
and major improvements appear to be located on the property described in the deed. Many lending institutions and title companies require this inspection to check for obvious problems with the parcel such as encroachments and setback violations, but it does not verify the location of all boundary corners as described in the deed.
What does a boundary survey entail?
The surveyor thoroughly examines the historical records relating to the land in question and often all lands surrounding it. In addition to the Registry of Deeds, this research may include: The Registry of Probate, County Commissioners' offices, town offices, historical associations and the Department of Transportation. The surveyor may also talk with prior owners and owners of adjoining properties.
The field work begins after the research is completed and involves establishing a control network of known points called a traverse. The points are used to search for and locate existing monuments and other evidence of the boundaries. Although the field portion of a survey is the most visible phase of surveying, it usually represents only a third of the entire project.
The results of the field work are compared with the research and the surveyor then reconciles all of the information to arrive at a final conclusion about the boundaries. A second field trip is then needed to set the new monuments. Finally, the surveyor will draft a plan, prepare a legal description and write a report.
W hat is an ALTA Survey?
An ALTA survey is a property survey prepared to minimum requirements set forth by the American Land Title Association (ALTA) and American Congress on Surveying and Mapping (ACSM). This type of survey is often required by lending institutions and title companies prior to the closing of a real estate transaction or refinance. An ALTA survey shows improvements, easements, rights-of-way, and other elements impacting the ownership of land. An ALTA Survey is often prepared for commercial properties, as it will provide the title company with the information required to insure the title to the land and improvements to the high degree that a commercial development may require. In addition to the minimum standards set forth, a table of optional elements is included in the ALTA/ACSM standards. A careful review of the elements from this optional "Table A" is helpful in delineating a clear scope of the land surveyor's services. A current title commitment is required to complete an ALTA survey. The title commitment will provide the surveyor with the legal description of the property and any easements or restrictions of record affecting the property. The surveyor is required to show these easements graphically on the survey map along with the “Table A” requirements requested by the client. Any encroachments discovered by the surveyor will also be shown. The surveyor will certify the map to the client, the client’s lender and the title company issuing the commitment. For more information on ALTA surveys: http://www.alta.org/