When you are buying or selling your Crested Butte home there are documents very beneficial to the transaction – a survey or ILC is one of those things .
They are very similar and you will usually only need one or the other. A survey is a document prepared by a licensed surveyor that shows the land that is being purchased. Whereas an ILC only shows the improvements on the property concerning structures, boundary lines, and encroachments…. You will want a Survey or ILC when buying your Crested Butte home.
It is helpful to have a graphic representation of what the seller is selling. A survey is typically a required document by the title company to provide a title policy. A lender requires it to finance the purchase of a property. If there has been no survey, then there will be an exception in the policy. If a condo is being purchased, an existing condo plat map will suffice.
It is a diagram with descriptive latitude/longitude coordinates, metes, and bound descriptions. This system was brought to the US from England. It is a method that uses physical features of the local geography, along with directions and distances, to define and describe the boundaries of a parcel of land. Most importantly, it shows the boundaries of the property. The survey also shows the improvements and structures built on the property, as well as any easements, encroachments, and setbacks.
Example of Problems Revealed by a Survey
There are many examples in the Crested Butte market where there are driveways, sheds, retaining walls, or decks or fences that encroach on the parcel set-backs or cross an adjacent neighbors property line.
Here’s an example of why getting a Survey or ILC when buying or selling your Crested Butte home is so important. My client was the buyer purchasing a home in historic downtown Crested Butte. It is important to know that it is prohibited to tear anything down in the Historic District. That means you cannot take down a building or a house, and especially not a shed.
The ILC showed that the dream house was encroaching on the adjacent neighbor’s property by twelve inches. The front steps and covered porch were also encroaching on the street right-of-way owned by the town of Crested Butte. Typically these encroachments could be a big problem because the neighbor could demand that the “twelve inches of the house” be removed from his property. Furthermore, the town could demand that the front steps and porch of the house vacate the encroachment on the right-of-way. This could be a big burden and expense for the homeowner.
While the results from this ILC were troubling, we managed to find a solution to everything. I met with the town officials and I had a Revocable License Agreement prepared for the sellers, which authorized or allowed the street encroachment. This document was signed by the sellers and approved by the town staff and city council, so the ROW encroachment was legally eliminated and recorded.
I tracked down the neighbor and he was agreeable to sign a Boundary Line Agreement but wanted the buyer to pay for his attorney’s fees. We got all the docs signed, and were able to successfully close. My client was happy and slept well at night in their new Crested Butte home.
What Is an Improvement Location Certificate (ILC)?
An ILC is very similar to a survey and a licensed surveyor also prepares it. It is less expensive than a survey; currently, the cost is approximately $700 for an ILC in the Crested Butte market. In the State of Colorado, an ILC is an accepted document and can be used for the buyer and the mortgage, or title companies to have some assurance that the improvements to a property are not encroaching into an easement or beyond the deed lines. Whichever you choose, you will want a Survey or ILC when buying or selling your Crested Butte home.
Who Pays for the Survey or ILC?
It is negotiable, but our local Crested Butte custom says the seller should provide the survey. If they have one in their files, they should produce it, and if not, then they should hire a surveyor to prepare one. The reasoning is that the seller should provide evidence of what they are selling. If there is a lender, then as a part of the loan approval process the lender may order a new survey or ILC directly. As a result, the buyer is effectively paying for the survey via the terms of their loan origination.
How Can I Help?
Stay safe out there. If you have any other questions or concerns about Survey or ILC. Please contact me to help you.
If you want to chat about the real estate market here in Crested Butte – give me a call… (970) 209-5405
I have been in your shoes – as both a Second Home Buyer and Seller here in Crested Butte.
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Coldwell Banker Mountain Properties