Tips Regarding Crested Butte ILC or Survey
Whether you are a Buyer or a Seller of real estate in Crested Butte it is important to know exactly WHAT is being sold or purchased – here are some Tips Regarding Crested Butte ILC or Survey. Common questions include – Where are the corners of the property? (the pins), What improvements are on the property?, What easements run through the property? and Are there are any encroachments on the property?
What is an ILC – Improvement Location Certificate?
An Improvement Location Certificate (ILC) is similar to a survey, except it only shows the improvements on the property in relation to boundary/deed lines. A licensed surveyor prepares it. It is less expensive than a survey; currently the cost is approximately $600 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 assurance that the improvements to a property are not encroaching into an easement or beyond the deed lines.
Who Pays for the ILC or Survey?
It is negotiable, and this will be specified in the Contract to Buy & Sell. There may be differences of opinion in different markets, but it is customary in Crested Butte for the seller to provide the ILC or 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 typically order a new survey or ILC directly, and so the buyer is effectively paying for the survey via the terms of their loan origination. If the seller has an ILC they can also produce this an agree to sign an affidavit at closing that there has been no additional structures or encroachments to the property.
Encroachment Issue Example #1
I represented a Seller who had an ILC prepared for their property in Mt. Crested Butte. The ILC showed the driveway encroached on the neighbor’s property. The driveway had been in place since at least 1993 (there was an ILC done in 1993 that showed the driveway – but no encroachment specified). The attorney the Seller hired referenced “Prescriptive Easement” and “Adverse Possession” and some other avenues that would ensure the driveway could stay where it was “legally”.
In laymen’s terms in Colorado if after 18 years of continual use – if an encroachment exists it can remain. But these avenues would likely cost both parties a fair amount of money for attorney’s fees. Instead the neighbors agreed to prepare a simple Encroachment Agreement they would both sign. An attorney prepared the Encroachment Agreement with the ILC as the exhibit. This document was provided to the Title Company and was recorded in Gunnison County.
We were able to get the issue resolved without the seller having to remove the driveway. The buyer was happy that they had the assurance the driveway will legally remain in it’s current location. Problem solved, the transaction continued to Closing. Win Win Win.
Encroachment Issue Example #2
My client was the buyer purchasing a home in historical downtown Crested Butte. The “historical” part is important because 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. (There are exceptions to every rule, but you need deep pockets and a posse of expert representation to make such a thing happen.) The ILC showed that the Crested Butte Home was encroaching on the adjacent neighbor’s property by twelve inches, and that the front steps and covered porch were encroaching on the street right-of-way owned by the town of Crested Butte.
The conventional wisdom is that these encroachments are a big problem because the neighbor could show up some day and demand that twelve inches of the corner of the house be removed from his property, and the town could demand that the front steps and porch of the house vacate the encroachment on the right-of-way.
Since the other agent representing the seller did not want to spend any time or effort trying to get these problems fixed, 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.
Regarding the house encroachment on the neighbor’s property – I tracked down the neighbor, who was a second homeowner from Texas, 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.
Whether you are a Buyer looking for your perfect Crested Butte Dream Home, or a Seller looking to sell your existing home or parcel hopefully this post Tips Regarding Crested Butte ILC or Survey has given you some additional insight.
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