Real Estate Encroachment: What It Means for Homeowners

How Encroachments Can Impact Homeowners

Encroachment is a real estate issue that can create confusion, disagreements, and even legal challenges between neighbors. Whether it involves a fence, driveway, or an overhanging structure, any intrusion onto your property can affect your ability to use, buy, or sell a home. This article explores how to identify encroachment, the types you may encounter, and how to prevent or resolve it.

What Is Encroachment in Real Estate?

Encroachment occurs when a neighbor enters your property or builds something that extends onto your land without permission. This could be a structure like a fence or shed, or it could be landscaping elements like tree branches or bushes that cross the boundary line. While some encroachments are minor, others can create significant conflict between neighbors. This is especially true when an encroachment affects how the property can be used.

Legal issues may arise if the encroachment interferes with property access, violates zoning laws, or prevents a homeowner from selling the property without first resolving the boundary dispute. In some cases, longstanding encroachments can make possession claims more difficult if the homeowner hadn’t addressed the issue early on.

Types of Property Encroachment

Encroachments can be unintentional or intentional, and understanding the difference can help homeowners respond appropriately. Unintentional encroachments typically happen when a person is confused or mistaken about the exact location of property lines. For example, a neighbor might unknowingly install a fence a few feet over the boundary, or someone may park a vehicle on the wrong side of a shared driveway. These mistakes are common and often resolved through communication and clarification of property boundaries.

On the other hand, intentional encroachments occur when someone knowingly uses or builds on another person’s property without permission. These situations can lead to more serious disputes and may require legal action to be resolved.

When you’re thinking about making improvements to your home, a professional property survey can help ensure you stay within your boundaries and avoid encroaching on a neighbor’s property. Having a way to clearly show where property lines are located is one of the best ways to prevent future issues.

Next, we’ll look at a couple of other ways encroachments are categorized.

Understanding Structural Property Encroachment

Structural property encroachments happen when a permanent building or structure crosses over property lines and extends onto a neighboring lot. These situations often happen when a homeowner constructs something too close to the boundary line without verifying precisely where their land ends. Structural encroachments can create long-term complications because they involve fixed structures that can be costly or difficult to move. When this type of encroachment occurs, homeowners may need to resolve the issue before selling, refinancing, or making additional improvements.

Examples include structures that are:

• Built on or over a property line.
• Built closer than the minimum required distance from a property line (this distance is called a setback).
• Hanging over a property line, such as a balcony or deck.

Understanding Landscaping and Fence Encroachments

Landscaping and fence encroachments are some of the most common issues homeowners face because they usually develop gradually and may go unnoticed for long periods. This type of encroachment occurs when plants, fences, or other outdoor features extend past property lines, either unintentionally or intentionally. Unlike structural encroachments, these issues are often easier to fix, but they can still lead to disagreements between neighbors. Before installing fencing or performing major landscaping work, it’s wise to verify the boundary lines.

Examples include:

• Tree branches or shrubs growing over a property line.
• A fence built over a property line.
• Bushes or flowers that were planted on or over a property line.

How Encroachment Can Affect Property Owners

Encroachments can affect property owners financially, legally, and practically. Even a small structure or fence built over property lines can create tension between neighbors and may require legal intervention if the parties cannot resolve the issue on their own. Encroachments can also interfere with property use and enjoyment, as they can block access, reduce yard space, and violate local zoning rules. In more serious cases, encroachments can impact real estate transactions, making it harder to sell or refinance a property until the issue is resolved. Understanding these potential consequences can help homeowners recognize when an encroachment requires immediate action.

Property Value and Sales Impact

Encroachments can complicate real estate transactions by making a home less appealing to potential buyers. A minor issue like a slightly overgrown tree branch probably won’t negatively influence a buyer’s decision, but more substantial encroachments can raise concerns about future disputes or repair costs. Buyers may worry about taking on a property with uncertain boundaries or unresolved conflicts, which might slow the sale process or reduce the home’s market value.

Significant encroachments, such as a permanent structure that crosses over a property line, can discourage buyers entirely. These situations often require legal agreements, property line adjustments, or even the removal of an encroaching structure before a sale can proceed. As a result, homeowners may have a harder time selling their home, or they may receive lower offers than they might receive without the encroachment.

Title Issues and Boundary Disputes

Encroachments can also create complications with a property’s title, especially when boundaries are unclear or disputed. Title companies may hesitate to insure a property when an encroachment affects who legally owns a portion of the land. This can delay closing, increase costs, or require additional documentation before the transaction can move forward.

Boundary disputes often arise when neighboring property owners disagree about where the true property line lies. In some cases, an unresolved encroachment may even trigger legal claims or require a boundary survey to formally establish the correct lines. These challenges highlight why it’s important for homeowners to understand the difference between key documents like a deed and a title, as each plays a role in proving ownership and resolving disputes.

How to Identify an Encroachment

Identifying an encroachment early can prevent disagreements and costly legal issues down the road. Homeowners can look for signs of structures, landscaping, or fencing that appear to cross property lines on their own, but verifying an encroachment requires checking reliable documents or working with professionals. Knowing the exact property boundaries can help you resolve or prevent problems. Below are some steps you can take to identify an encroachment.

• Gather information: Review important documents that outline your property boundaries, such as the deed, plat map, or any previous surveys. These records can help clarify where your land begins and ends.
• Get a professional survey: Hiring a licensed surveyor can provide a precise and legally recognized map of your property lines. Surveys are especially helpful if you suspect an encroachment or are planning any major home improvements.
• Check municipal records: Local zoning offices or real estate development companies may have site plans, permits, or historical documents that show boundaries.
• Talk to your neighbor: Sometimes a simple conversation and joint walkthrough of the property can clarify misunderstandings and prevent future encroachments.

What to Do If You Discover an Encroachment

If you notice an encroachment on your property, you should address it as soon as possible. Allowing it to remain can create legal complications, including the possibility that it may become an easement. For example, imagine your neighbor builds a garage or fence that crosses over your property line. If you leave it unaddressed for too long, the structure may eventually give your neighbor a legal right to use that portion of your land.

Here are some ways to handle an encroachment:

• Have a talk: Start by communicating with your neighbor and expressing your concerns calmly. This can often lead to a quick resolution.
• Make it formal: If your neighbor disagrees or ignores the issue, you may need to file a Notice of Claim, which is an official document requesting that they remove the encroachment within a specific timeframe.
• Negotiate a solution: If the encroaching structure is difficult to move, you may be able to negotiate compensation for the use of your land or legally sell an easement to your neighbor. This ensures the agreement is documented in official records.
• Go to court: If the other options don’t lead to a resolution, you may have to file a lawsuit. This route can be expensive and time-consuming, and there’s no guarantee the court will rule in your favor, so it’s usually the last resort.

Encroachment vs. Easement: What’s the Difference?

Encroachment occurs when someone builds or uses part of your property without permission. Easements, on the other hand, allow someone to enter or use your property under specific conditions and with your permission, which can either be given expressly or be implied through unaddressed encroachment.

Easements are formal, legally binding agreements that remain connected to a property even when it changes ownership. If you purchase a home with an easement, you’re required to honor its terms.

Tips to Prevent Real Estate Encroachment Issues

Preventing encroachments starts with a clear understanding of your property boundaries. A current property survey ensures you know exactly where your land begins and ends, which helps you make informed decisions about fencing, landscaping, and construction. Homeowners can also prevent or resolve encroachments by:

• Keeping copies of surveys and property records.
• Installing fences or markers along property lines after confirming boundaries.
• Communicating with neighbors before starting any construction close to property lines.
• Inspecting the perimeter of your property for new structures or changes.
• Consulting a real estate attorney if you suspect a boundary issue.

Encroachment FAQs

Here are some common questions homeowners might have when dealing with boundary issues.

What Happens If a Survey Shows an Encroachment?

If a survey reveals an encroachment, you should discuss the issue with your neighbor and work toward a resolution, such as removal, adjustment, or negotiation. If necessary, a real estate attorney can help you understand your options.

Can I Remove My Neighbor’s Encroaching Structure?

You generally cannot remove a neighbor’s structure on your own, even if it encroaches on your property. Instead, you must request that they remove or modify it. If they refuse, legal action may be required to enforce your property rights.

Should I Buy a House with an Encroachment?

Buying a house with an encroachment can be risky because it may affect property value, financing options, and future use of the land. Before purchasing, review the situation with a real estate attorney and ask the seller to resolve the issue. In some cases, a negotiated agreement or easement can make the property more secure.

Final Thoughts: Encroachments in Real Estate

Real estate encroachments can create long-term complications if they go unaddressed, but understanding your rights and acting quickly can protect your property and prevent disputes. Whether you’re dealing with an existing encroachment or hoping to avoid one, clear communication, accurate records, and professional guidance are essential.

If you’re in the early stages of the homebuying process, getting prequalified today can help you decide what homes are in your budget.