Improvement Location Certificate
A closer look at ILCs:
Purpose
- The primary function of an ILC is to identify potential encroachments. By verifying the improvements’ location, an ILC helps mitigate the risk of future disputes or problems obtaining financing or title insurance.
What it Does
- An ILC creates a visual representation of the property.
- It will also mention easements and found boundary markers on the property.
What it Doesn’t Do
- ILCs are not full property surveys. They do not establish precise property lines or locate property corners.They should not be relied upon for precise measurements or planning new construction projects.
When is an ILC Needed?
- ILCs are frequently required during real estate transactions. Lenders may request them to ensure there are no encroachments that could affect the property’s value.
An Improvement Location Certificate offers a valuable service at a more affordable price point compared to a full survey. However, it is important to understand its limitations and not rely on it for definitive boundary markers or planning new construction.