ILC

An ILC stands for Improvement Location Certificate and may be required on a home purchase transaction.  An ILC requirement will most often be listed as a condition to the purchase contract.  This will help potential buyers determine whether the improvements made on a parcel of land contain any encroachment or boundary risks to the surrounding properties.  Improvements normally made to a home can include fences, decks, driveways, patios, paths, sheds, and other upgrades which will add value to the property.  If the improvements made on the property are done outside of the property lines it could create a liability issue to the new home owner. 

Title companies and mortgage companies may also require an Improvement Location Certificate to be completed on a transaction.  The stipulation for requiring the ILC is that both the title company and the mortgage company want to make sure the structures and the improvements being purchased are genuinely on the property.

The ILC can be ordered by anyone working on the real estate transaction and will range between $100 - $350, depending on the company providing the service and the location of the property.  After the ILC has been completed you will receive a copy for your own records. An ILC will provide the requester specified information, based on a surveyor’s general knowledge of an area.  The document will depict the property boundaries, illustrating the size and shape of the parcel, based on the legal description provided in the warranty deed.  It will illustrate improvements, encroachments, and easements based on their estimated size and location, in respect to the property’s legal parcel boundaries.  It is important to note that the ILC is not a formal survey and should only be used to “red flag” or emphasize any potential risk to the lender or to the title insurer for possible encroachment or boundary disputes.

ILC requirements are rare, but may be an asset to you in the event you should question any of the structures located on your property or your neighbor’s property.  Dispute resolution related to encroachment or boundary issues must take place before the real estate contract is approved, and if pursued will most likely require legal representation.