Definition
An encroachment occurs when a structure, improvement, or physical feature extends beyond a property’s legal boundary and intrudes onto adjacent land or into a recorded easement area. Encroachments can create title issues, disputes, and development limitations.
Common Examples
- A fence built across a property line
- A neighboring building that overlaps the boundary
- Driveways crossing into adjoining lots
- Utility lines placed outside designated easement areas
- Balconies, signage, or roof overhangs extending onto adjacent property
Why It Matters
- Title risk: May result in title exceptions or insurance limitations.
- Legal exposure: Could trigger boundary disputes or litigation.
- Financing impact: Lenders often require resolution before closing.
- Development limits: Encroachments may restrict expansion or compliance.
How It’s Discovered
- Property survey review
- ALTA/NSPS survey during due diligence
- Title commitment Schedule B exceptions
- Physical inspection
Resolution Options
- Boundary line agreement
- Encroachment agreement
- Easement grant
- Lot line adjustment
- Removal of the encroaching structure
Example
During due diligence, a survey reveals that a neighboring garage extends two feet onto the subject property. The buyer may require a recorded encroachment agreement or price adjustment before proceeding with the transaction.
Common Pitfalls
- Relying on outdated surveys
- Ignoring minor encroachments that could affect resale
- Failing to coordinate survey findings with title review
- Assuming long-standing encroachments are automatically legal