In Colorado real estate, the phrase “buyer beware” often applies most strongly when it comes to property boundaries. Many buyers assume that the backyard fence, the driveway edge, or the tree line marks the true property line. In reality, only a survey can tell the full story—and the surprises it reveals can be costly if overlooked.
What a Survey Really Shows
A survey is more than a map. It’s a legal snapshot of the property’s boundaries, improvements, and any encroachments or easements that might affect ownership. In Colorado, surveys frequently uncover:
- Encroachments: A neighbor’s fence, shed, or even a portion of a house built over the line.
- Easements: Utility, drainage, or access rights running across a property.
- Gaps or Overlaps: Irregularities between legal descriptions that create “no man’s land” or shared strips of property.
- Setback Violations: Improvements built too close to the lot line, violating local zoning rules.
These aren’t just technical issues—they can affect use, value, financing, and even the ability to sell later.
ILC vs. ALTA/NSPS: Knowing the Difference
In Colorado, buyers often face a choice between an Improvement Location Certificate (ILC) and an ALTA/NSPS survey.
- ILC: A quicker, less expensive option, an ILC gives a rough picture of boundary lines and improvements. It’s often sufficient for residential transactions in platted subdivisions where there’s little doubt about boundaries. But it cannot be used to precisely establish lot lines or resolve disputes.
- ALTA/NSPS Survey: The gold standard. This detailed, lender-approved survey confirms exact boundaries, easements, encroachments, and improvements according to national standards. ALTA surveys are typically required in commercial transactions, vacant land purchases, or any deal involving financing where the lender or title company demands certainty.
Put simply: if you’re buying a single-family home on a city lot, an ILC may be enough. If you’re buying commercial property, rural acreage, or land with questionable access or improvements close to lot lines, a full ALTA/NSPS survey is the safer—and sometimes necessary—choice.
Why Surprises Matter
Consider a common example: a fence that doesn’t match the legal boundary. If you buy without a survey, you may later discover that part of your yard isn’t actually yours—or worse, that your garage sits partially on your neighbor’s lot. Resolving these disputes can involve negotiating boundary line agreements, relocating improvements, or even litigating quiet title actions.
Another frequent issue in Colorado is access. Particularly in mountain and rural areas, a survey may reveal that a property doesn’t actually touch a public road. Without a recorded easement, you may not have a legal right to reach your own land. That discovery after closing can turn a dream cabin into a legal nightmare.
Resolving Survey Surprises
The good news is that survey problems don’t have to kill a deal. Several tools exist to manage risk and provide protection:
1. Title Insurance Endorsements
- ALTA 9 (Restrictions, Encroachments, Minerals) Endorsement: Provides coverage for certain covenant violations, encroachments, or easements affecting the property.
- Survey Endorsements (ALTA 25 series): Available when a current ALTA/NSPS survey is provided, these insure against losses if the survey is inaccurate or misses an encroachment.
- Access Endorsements (ALTA 17 series): Protects the insured if the property lacks legal access to a public road
2. Boundary Line Agreements & Easements
If a fence, shed, or driveway encroaches, neighboring owners can often resolve the matter by recording a boundary line agreement or easement. This formalizes the arrangement and clears title for future transactions.
3. Relocation or Removal
Sometimes the practical solution is to move a fence, trim a driveway, or adjust an improvement. While not ideal, this can be the fastest and least expensive resolution.
4. Quiet Title Actions
When neighbors can’t agree—or ownership gaps and overlaps exist—a quiet title action may be necessary. This court proceeding establishes ownership but can take months and involve significant cost.
5. Renegotiation or Termination
The Colorado Real Estate Commission-approved purchase contract protects buyers by providing an “Off-Record Matters” objection deadline. This allows time to review survey results and raise concerns with the seller. Depending on the issue, the parties may renegotiate the price, escrow funds for resolution, or terminate the deal without penalty.
Practical Advice
For realtors and clients alike, the takeaway is simple: don’t skip the survey, especially when:
- Buying vacant land or mountain property.
- The property has improvements close to lot lines.
- Shared driveways or visible easements exist.
- Title commitments flag potential encroachments.
The up-front cost of an ALTA/NSPS survey is often minimal compared to the long-term headaches of a boundary or access dispute. And with the right title endorsements, buyers can protect themselves against many of the risks surveys reveal.
Conclusion
Real estate in Colorado is full of character, from historic neighborhoods to remote mountain acreage. But that character often comes with quirks. A survey ensures that what you think you’re buying is, in fact, yours—and nothing more, nothing less. And when surprises do surface, knowing your options for resolution can make the difference between a deal falling apart and a deal moving forward with confidence.