A Colorado Improvement Location Certificate, usually called an ILC, is a scaled drawing prepared by a licensed Colorado land surveyor that shows where a property’s buildings, fences, driveways, and other visible improvements sit in relation to the apparent boundary lines. It is the standard, lower-cost document lenders and title companies rely on during a residential closing to catch encroachments and setback problems. It is not a boundary survey and does not legally establish where your property lines are.
What an ILC Shows and Who Uses It
The surveyor visits the site, reviews the recorded deed description, and produces a scale drawing of the lot with all visible improvements marked on it. The certificate carries a written disclaimer stating that it does not define property boundaries, along with the surveyor’s signature and license number. It is certified to the specific parties identified in the transaction.
Lenders use the ILC to spot anything that could affect their collateral: a garage that crosses a setback line, a driveway that runs onto a neighbor’s parcel, a fence sitting on top of a utility easement. If the certificate turns up a problem, the lender may hold up funding until it is resolved. Title companies use it as a screening tool for the same reasons. Statutory authority for the ILC sits in Colorado Revised Statutes 38-51-108, which requires a licensed professional land surveyor and makes clear the certificate is not a boundary survey.1Justia Law. Colorado Code Title 38 – Section 38-51-108
Cost and Turnaround
An ILC on a typical residential lot in Colorado generally runs a few hundred dollars up to around a thousand, depending on lot size, terrain, and how straightforward the recorded deed description is to work from. That is significantly less than a full boundary survey, which can cost several times more for the same parcel. Commercial properties and larger acreage push the price up because the surveyor spends more time on site and works through more complex title records.
Turnaround depends on season and workload. A common lead time before a surveyor can start is roughly three weeks, and the certificate itself takes another seven to ten business days once the work begins. Most firms offer a rush option for an added fee. Because the standard purchase contract sets a hard delivery deadline, order the ILC as early as possible; a late certificate eats into the objection and resolution windows and can jam a tight closing.
How the Purchase Contract Handles the ILC
The standard Colorado Real Estate Commission Contract to Buy and Sell Real Estate has a dedicated section, Section 9, for ILCs and surveys. The parties check a box to require a new ILC, decide whether the buyer or seller orders it, and negotiate who pays. There is no statutory default on cost allocation. The contract sets three separate deadlines: one for delivering the ILC, one for the buyer to raise objections in writing, and one for resolving those objections.2Colorado Division of Real Estate. Contract to Buy and Sell Real Estate (Residential)
If the ILC reveals something you find unacceptable, you have three options under the contract. You can terminate. You can try to negotiate a fix with the seller. Or you can waive the issue and proceed to closing. You also have the right to upgrade from an ILC to a more thorough survey at your own expense, as long as doing so does not push back the objection deadline.2Colorado Division of Real Estate. Contract to Buy and Sell Real Estate (Residential)
When You Can Reuse an Existing ILC
Not every deal needs a brand-new certificate. Colorado regulations allow reuse of an existing ILC that is less than 12 months old from its date of issuance.3Colorado Secretary of State. Rules Concerning Improvement Location Certificates Older than that, a lender or title company can still accept it, but only with an affidavit from the surveyor or title company confirming no improvements or changes have been made since the original was issued.
The contract itself acknowledges reuse: a “New ILC” is defined to include a previous ILC that has been “certified and updated as of a date after the date of this Contract.”2Colorado Division of Real Estate. Contract to Buy and Sell Real Estate (Residential) If you are a seller who bought recently and still have your closing ILC, ask a surveyor about recertifying it before ordering a new one.
How an ILC Differs From a Land Survey Plat or Improvement Survey Plat
Colorado law recognizes three separate survey products, and the ILC is the least precise of the three.
A Land Survey Plat (LSP), governed by C.R.S. 38-51-106, is the authoritative boundary document. The surveyor physically locates or sets boundary markers, draws the parcel boundaries to scale, and files the plat with the county recorder.4Justia Law. Colorado Code Title 38 – Section 38-51-106 An LSP carries legal weight in property line disputes, subdivisions, and construction projects that depend on precise legal descriptions.
An Improvement Survey Plat (ISP) combines LSP-level boundary verification with a detailed map of structures, easements, and encroachments. It is the most comprehensive option, often required for commercial developments, zoning applications, and major renovations, and it carries greater legal authority than an ILC in a boundary conflict.
The ILC does neither of those jobs. It shows improvements relative to apparent boundaries and cannot serve as legal proof in an ownership dispute.1Justia Law. Colorado Code Title 38 – Section 38-51-108 For a routine residential purchase with no known boundary issue, an ILC is usually all a lender and title company need. If it raises questions, you can upgrade to an ISP or LSP before closing.
If the ILC Flags a Problem
Minor encroachments, like a fence sitting a few inches past the apparent line, often get handled with a written encroachment agreement recorded with the county clerk. The agreement becomes part of the title history and protects both sides going forward. More serious conflicts can require a formal boundary agreement between neighbors or, in the hardest cases, a quiet title action in district court asking a judge to determine where the line actually falls.
The ILC also interacts directly with your title insurance. Colorado title policies routinely include a standard exception for “matters that an accurate survey would disclose.” If the ILC identifies something concrete, such as a shed that appears to cross onto the neighboring lot, the insurer may replace that general exception with a specific one naming the encroachment. The policy then will not cover losses tied to that issue, and the buyer carries the risk unless it is fixed.
Buyers who want broader coverage can ask about owner’s extended coverage, which removes the general survey exception. The title company may require an ISP or an updated ILC as a condition of issuing that extended policy.2Colorado Division of Real Estate. Contract to Buy and Sell Real Estate (Residential) If the problem is serious enough, the title company can refuse to insure the deal without additional legal documentation. The earlier the ILC is in hand, the more options you have to work through whatever it turns up.