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Understanding Property Surveys in Real Estate Transactions

- Rob Swan, Qualifying Broker, Swan Realty

When buying or selling property, surveys play an important role in protecting both buyers and lenders. The two most common survey types requested during a property transfer here in Red River and Angele Fire are:

  • Improved Location Report (ILR)

  • Staked Boundary Survey

Each serves a different purpose, carries a different cost, and one or he other may be required depending on the property type and title company’s requirements. 

What Is an Improved Location Report (ILR)?

An Improved Location Report (ILR) is the most common and least expensive survey option. It typically costs much less than a boundary survey and shows:

  • Existing buildings

  • Driveways and roads

  • Power lines and utility easements

  • Fences and other improvements

ILRs are only valid for title insurance purposes. They cannot be used for construction projects, fence installation, or determining exact boundary lines. Some of our local surveyors will even stamp this statement on the ILR. This disclaimer is due to liability reasons, since the surveyor did mark the actual pins in order to delineate the property line, they do not want to be held liable if you use the ILR to build with and end up encroaching on the neighbors property. 

What Is a Staked Boundary Survey?

A Staked Boundary Survey is more detailed and generally double the cost (or more, depending on complexity). It includes everything an ILR covers plus exact property corners and boundary markers.

Because of its precision, a staked survey can be used for:

  • Building construction

  • Fence installation

  • Legal disputes over boundaries

Which Survey Will the Title Company Require?

The type of survey depends on the title examiner’s requirements:

  • Subdivision properties – Typically, an ILR is enough.

  • Existing ILR available – If the seller has a prior ILR and no improvements have been made, the title company may accept it with a signed affidavit but the ILR generally needs to be less than ten years old. 

  • Property improvements – If changes such as a new fence, addition, or driveway relocation occurred, a new ILR will be required.

  • Rural properties – Parcels outside of subdivisions, especially those with metes and bounds legal descriptions, often require a staked boundary survey.

Ultimately, the title examiner makes the final determination.

Why Surveys Matter

Over the years I have had surveys turn up all kind of property anomalies, from buildings encroaching on the neighbors property to driveways crossing the neighbors land, there was also a case locally where an entire home was built on the wrong parcel. Whether it’s an ILR or a staked boundary survey, the purpose is the same: to confirm that the property being sold matches the legal description and that there are no encroachments from or onto neighboring parcels.

This assurance is vital for:

  • Title companies issuing insurance

  • Lenders financing the transaction

  • Buyers protecting their investment

Need Help With Property Surveys?

Understanding survey requirements can feel complicated, but you don’t have to navigate it alone. At Swan Realty, we guide clients through every step of the buying and selling process.

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FAQ Section

1. What is an Improved Location Report (ILR)?

An ILR is a basic and cost-effective survey used primarily for title insurance purposes. It shows visible improvements such as buildings, driveways, fences, and utilities, but it cannot be used to determine exact property boundaries.

2. Can an ILR be used for building or installing a fence?

No. An ILR is not precise enough for construction, fence placement, or legal boundary disputes. It is only for title insurance review.

3. What is a Staked Boundary Survey?

A staked boundary survey is a more detailed and higher-cost survey where a licensed surveyor marks exact property corners and boundary lines on the ground.

4. When is a Staked Boundary Survey required?

Staked surveys are usually required for rural or metes-and-bounds properties, for new construction, fence installation, or when there is a potential boundary dispute.

5. Will the title company accept an old ILR?

If an existing ILR is less than 10 years old and no property changes have been made, a title company may accept it with a signed affidavit from the seller.

6. Who decides whether an ILR or staked survey is needed?

The title examiner and title insurance underwriter make the final determination based on the property type, location, and any improvements made.

7. Why are property surveys important in real estate transactions?

Surveys help verify that the property being sold matches the legal description and that no encroachments exist, protecting buyers, lenders, and title companies.

8. What problems can a survey uncover?

Surveys can reveal driveways crossing neighboring land, fences built outside boundaries, buildings encroaching onto other parcels, and even cases where homes were built on the wrong lot.

9. Do rural properties have different survey requirements?

Yes. Rural parcels or land with metes-and-bounds legal descriptions often require a full staked boundary survey rather than a simple ILR.

10. Can Swan Realty help with arranging or reviewing surveys?

Yes, of course we can, just give us a call. 

 

Contact Rob Swan, Qualifying Broker
Swan Realty – (575) 613-4243