Definition:
Encroachment happens when a person builds or extends a structure onto someone else’s property without permission.
Example:
John builds a new fence in his backyard but accidentally places it two feet onto his neighbor Sarah’s land. This fence is considered an encroachment because it crosses over the legal property line.
Explanation:
In real estate, encroachment refers to any physical structure—like a fence, shed, driveway, or even a tree branch—that crosses into another person’s property. It can happen by mistake or intentionally, but either way, it may create legal and financial issues.
Encroachments are usually discovered during a property survey, which is often done before closing on a home. If an encroachment is found, buyers and sellers may need to resolve it before the transaction moves forward. Solutions can include removing or adjusting the structure, negotiating an agreement between neighbors, or granting an easement to allow the structure to remain legal.
If not addressed, encroachments can lead to disputes between neighbors and may affect property value, title insurance coverage, or future development plans.
Why is Encroachment Important in Real Estate Transactions?
Encroachments are important because they can cause legal problems, delay closings, and impact property rights. For buyers, discovering an encroachment after purchasing a home could mean unexpected costs or legal action. For sellers, unresolved encroachments can scare off buyers or reduce the sale price.
By identifying and resolving encroachments early—through surveys and open communication—both parties can protect their interests and avoid future conflicts. Understanding what encroachments are and how to handle them is key to a smooth and informed real estate transaction.