An encroachment occurs when a structure on your property extends onto a neighbor's land, or vice versa. It is a title issue that can affect your ability to sell. Resolution options include a survey to confirm the boundary, a negotiated agreement, a lot line adjustment, or title insurance coverage.
Title Issues With Encroachments
Encroachments are considered title defects because they affect the property's boundaries and the owner's right to sell clear title. The title company will likely require resolution before issuing a standard title policy. Common encroachments include fences, sheds, driveways, and landscaping that cross property lines. Even a fence that has been standing for decades can be an encroachment if it is not on the surveyed boundary line.
When selling, your agent should ask whether you know of any encroachments. If you are unsure, ordering a survey can identify them. Disclose any known encroachments to the buyer. The buyer's lender may also require a survey and may refuse to fund the loan if an encroachment is found and not resolved.
Resolution Options
The first step is a professional survey to confirm the encroachment. Once confirmed, you have several options: negotiate an encroachment agreement with the neighbor, seek a lot line adjustment through the county, purchase title insurance that covers the encroachment (with a specific exception), or in rare cases, remove the encroaching structure.
An encroachment agreement is a written agreement between neighbors that allows the structure to remain in place. It should be recorded with the county and may require a one-time payment or ongoing consideration. A lot line adjustment changes the official property line to match the current use of the land, which requires county approval. Both options can be completed during the sale process with cooperation from the neighbor.
