Survey or ILC When Buying or Selling Your Crested Butte Home
When you are buying or selling your Crested Butte home there are documents you must provide. A survey or ILC is one of those things you will need. 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 in relation to boundary/deed lines. There is some difference in price as well. Either way, you will need a Survey or ILC when buying or selling your Crested Butte home.
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.
It is 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.
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 $400 for an ILC vs. approximately $800 for a survey in the Crested Butte market. In the State of Colorado, an ILC is an accepted document and can be used in order for the buyer and the mortgage and/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 need 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’s obligation is to provide evidence of what they are selling. However, if there is a lender, then as a part of the loan approval process the lender will 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.
Example of Problems Arising From Survey
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 historical 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 encroaching on the street right-of-way owned by the town as well. The conventional wisdom is that these encroachments are a big problem because the neighbor demand that twelve inches of the corner 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.
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 counsel, so the ROW encroachment was legally eliminated and recorded. I tracked down the neighbor and he was agreeable to a Boundary Line Agreement, but wanted the buyer to pay for his attorney’s fees. The end result was if the lender would have required this Boundary Line Agreement, the buyer would have paid the fees, and we would have had the neighbor sign. But since this was not a contingency to the loan, it was not completed, and we were able to successfully close and my client is protected by the Historical District overlay.
Survey or ILC When Buying or Selling Your Crested Butte Home Final Thoughts
If you would like to know more about surveys or ILCs, contact me.
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