Colorado buyers hear "we ordered the ILC" and think the property has been surveyed. It hasn't. Knowing ILC vs land survey is one of those Colorado-specific details that separates good agents from great ones. An Improvement Location Certificate is helpful, cheap and fast, but by law it isn't a boundary survey. Here's how to explain the difference and when to recommend the real thing.
The short answer
An ILC is a drawing by a licensed land surveyor that shows the house, garage, fences and other improvements in relation to the lot described in the title documents, plus apparent easements. Lenders and title companies use it. Colorado law says an ILC is not a land survey plat, and its certificate says it shouldn't be used to set fence, building or future improvement lines. If the buyer plans a fence, addition, ADU, or worries about where the line actually is, they need a land survey plat (boundary survey) or an improvement survey plat.
Step by step
- Explain what the ILC shows. The lot shape from the legal description, the main structures, visible improvements, and easements from the plat or title documents.
- Explain what it doesn't do. It doesn't set corners or establish legal boundaries with survey precision.
- Ask about plans. Fence? Addition? Detached garage? ADU? Shed near the line? Any of those means a boundary survey is worth considering.
- Look at the risk. Older neighborhoods, rural parcels, odd-shaped lots, shared driveways, and fences that look off are red flags.
- Use the contract section. The Colorado contract lets the parties choose a new ILC or new survey, who orders it, who pays, and a deadline to object. Fill it in on purpose. See Colorado contract basics.
- Read it against the title commitment. Compare easements on the ILC with the Schedule B-2 exceptions. See title commitment.
- Object by the deadline. If the ILC shows an encroachment (a fence or shed over the line, a structure in an easement), the buyer can object under the contract.
- For acreage, go further. Mountain and rural land often needs a full survey, plus access and water checks. See 35-acre rule.
ILC vs survey at a glance
| ILC | Land survey plat / improvement survey plat | |
|---|---|---|
| Who prepares | Licensed land surveyor | Licensed land surveyor |
| Sets property corners | No | Yes (boundary survey) |
| Good for lender and title | Yes | Yes |
| Good for fence or addition plans | No | Yes |
| Cost and time | Lower, faster | Higher, slower |
How to explain it to your client
"The ILC is a sketch that shows where the house and fence sit compared to the lot on paper. The lender likes it, and it's helpful. But it isn't a survey. It doesn't mark your corners, and it says right on it that you shouldn't use it to build a fence. If you're planning a fence or an addition, let's talk about ordering a real boundary survey now, while we still have time to object."
Watch-outs
- Don't say "the property was surveyed" when only an ILC was done.
- Fences lie. Old fences often aren't on the line.
- Encroachments are negotiable only before the objection deadline.
- Extended title coverage may need an ILC or survey. Ask the title company.
- Not legal advice. Boundary disputes go to a surveyor and an attorney.
Further reading
This is training for real estate agents. It isn't legal advice. Check with your managing broker.
Questions
What does ILC stand for?
Improvement Location Certificate.
Is an ILC a survey?
No. Colorado law treats it as different from a land survey plat.
Who pays for the ILC?
Whoever the contract says. It's negotiable.
When should my buyer get a boundary survey?
When they plan improvements near the lines, the lot is rural or odd-shaped, or the ILC shows a possible problem.
Can an ILC show an encroachment?
It can flag one. A survey confirms it.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.