Improvement Location Certificate: ILC Survey for Mortgage and Title Companies

Power Surveying Company, Inc. offers ILC services to customers who need assurances regarding property deed lines. As one of the most experienced land surveying services in Colorado, Power Surveying Company, Inc. has provided thousands of ILCs to customers in the region.

An Improvement Location Certificate (ILC) involves inspecting property boundaries for a client that has an “improvement” present on their property. It is critical to establish the boundaries before you can obtain a mortgage. You must ensure that the improvement does not infringe on neighboring properties.

In many cases, a mortgage company or title company will require documentation that assures the improvements do not interfere with deed lines. An ILC is one form of documentation that may satisfy this requirement.

It is important to note that an ILC is not an official property survey. It is a less expensive alternative that does not require the same intensive surveying process. Because of this, there is a margin of error. There is typically a dimensional tolerance included in the certificate to demonstrate that measurements are not precise.

In essence, an ILC is less thorough than a proper survey. It doesn’t utilize the same methods required for a traditional survey. While these certificates are often used to estimate property lines for property improvements, they are not recommended for fences or other building projects that require precise deed lines. If a homeowner wants to build new structures on a property, we recommend that they seek an official survey that provides exact property deed dimensions.

At Power Surveying Company, Inc., our decades of experience providing ILCs and land surveys places us in a unique position to give you the best services in the region. We have a database of tens of thousands of ILCs. This extensive database allows us to draw from previous inspections and provide certificates quicker than our competitors.

Mortgage Companies

Mortgage companies typically require ILCs to help verify the value of the home that is secured against their loan. This is a component of the underwriting process. If improvements interfere with the property line, the value of the property may be impacted significantly.

As a risk reduction strategy, an ILC can provide property line estimates that help confirm there aren’t any drastic property deed errors that may end up costing the mortgage company.

Keep in mind; some mortgage companies will not accept this form of a certificate. It is critical to understand that different mortgage companies have different requirements for their internal assurances.

Title Companies

Title insurers protect mortgage companies and property purchasers throughout the purchasing process. Title insurance companies insure against potential issues or defects during the transfer of ownership of the property. To reduce their risk against potential problems, a title company may require an ILC.

If improvements to a property are shown to interfere with property boundaries, a title insurer may be liable for damages. ILCs help these firms estimate deed lines and avoid issues during the ownership transfer process.

Keep in mind that not all title companies will accept this for title insurance. As this is not an official property survey, you will need to ensure that your insurance company accepts this form of the certificate before you proceed.

Improvement Location Certificate (ILC) Overview

  • An ILC is not considered an official property survey. It is a certificate.
  • The process is less intensive and more affordable than a traditional survey.
  • This certificate helps title and mortgage companies avoid supporting improvements that interfere with property lines.
  • In many instances, you won’t need more than an ILC to exhibit that your improvement doesn’t interfere with property lines.
  • Not all mortgage companies and title companies will accept this form of a certificate.
  • This form of certification should not be used to provide boundary evidence for a new fence or structure.
  • Our team has decades of experience supplying ILCs that satisfy mortgage companies and title companies.

Get in Touch with Power Surveying Company, Inc.

If you’d like to discuss ILCs in more detail, feel free to contact our team to discuss your questions. With over 70 years of experience in the industry, we’re experts at helping clients obtain the certifications they need. We have worked with a variety of mortgage and title companies in the area. We can assist you in getting the required documentation.

Our database of ILCs helps us provide accurate certificates at affordable prices. We’re able to work within tight deadlines. Get in touch today if you would like a free estimate!

Click here if you need Denver surveyors.

Go here if you’d like to learn more about residential surveys.