A boundary dispute can delay or derail a home sale. Resolving it typically requires a professional survey, clear title work, and either a negotiated agreement with the neighbor or a legal resolution. Addressing boundary issues early is essential for a clean closing.
The Role of a Survey
A boundary survey is the first step in resolving a dispute. A licensed surveyor will locate the property corners, measure the lot lines, and identify any encroachments or overlaps. The survey provides a definitive answer about where the boundary actually lies. Buyers often order a survey as part of their due diligence, so having one ready or resolving any known issues beforehand can prevent surprises.
If the survey confirms a boundary discrepancy, you have several options: negotiate a boundary line agreement with the neighbor, seek a lot line adjustment through the county, or pursue legal action if the neighbor does not agree. A boundary line agreement signed by both property owners and recorded with the county is often the quickest and least expensive solution.
Title Issues and Disclosure
Boundary disputes can create title defects that must be resolved before closing. The title company may require a survey and evidence that the dispute has been resolved before they will issue title insurance. Disclose any boundary disputes to potential buyers upfront. Concealing a known boundary issue can lead to legal liability after closing.
If you cannot resolve the dispute before closing, the buyer may require a title policy exception for the boundary issue, which means the title company will not insure against losses related to that specific boundary. Most buyers will walk away from a property with an unresolved boundary dispute that is not covered by title insurance. Resolving the issue before listing is always the better approach.
