Encroachment: Definition and what it means in real estate

Closing on a new home is the beginning of your journey as a property owner. This new chapter brings new responsibilities and new challenges. Building good relationships with your new neighbors is an important part of owning a home, but there can be tension when encroachment happens. If you leave these issues unaddressed, disagreements can grow over time. We’ll break down what encroachment means and how to resolve conflicts early so you can enjoy your home.

What is encroachment in real estate?

Encroachment in real estate is when a property owner violates their neighbor’s property rights, usually by building or extending a feature that crosses over the property line onto their neighbor’s land. Encroachment can also happen below the ground. For instance, installing utilities underground.

For example, maybe a tree branch from a lemon tree has grown to the point that it's extended into the neighbor's yard. Or a fence or shed has been built that crosses property boundaries.

While in some cases property encroachment might be intentional, often it's an accident. In some cases, it was done by the prior homeowner. It might be the result of an unclear property boundary. In fact, many property owners aren't even aware of the encroachment until a survey reveals it.

Types of real estate encroachments

There are several different ways property boundary issues can pop up. Let's look at some of the common types of real estate encroachments.

Minor encroachments

A minor encroachment is either temporary or minor in nature. Minor encroachments, as the name suggests, have minimal, short-term impact and can be easily remedied in a short period of time. Minor encroachments can be resolved by way of an informal negotiation or discussion.

Examples of minor encroachments include a tree branch that hangs over their side of the fence or a garden bed that slightly extends into their yard. It can also include minor landscaping and items that can easily be moved, like garbage cans and basketball hoops.

Structural encroachments

A structural encroachment can involve the construction of a building that crosses the property line. Or, it can be more permanent, larger, or a more substantial intrusion. Its impact is more significant and can be problematic long-term. A structural encroachment is usually considered a major encroachment. It might be harder and more expensive to move or alter, or legal action may be needed.

For example, permanent landscaping, utility installations, and building fences, garages, or balconies, or extending part of one's home.

Major encroachments

Major real estate encroachments can affect the owner's property rights and the ability to enjoy their own land. It can even affect the value of the home. Many structural encroachments tend to be major encroachments.

Structural encroachments and major encroachments are more expensive and complicated to remedy. In turn, they can more likely result in legal issues and court battles. Examples of major encroachments include expanding a building over property lines or installing utilities underground to your neighbor's property.

How to find out if a neighbor encroaches on your land

It's an awkward, uncomfortable situation that can lead to potential issues, no doubt. But if you think a neighbor might be encroaching on your land, it's a good idea to get a professional land survey. These are done by land surveyors, who specialize in measuring and mapping the Earth's surface. A professional land survey helps determine legal property lines. That way, you can figure out where the property line is.

A land survey can cost an average of $2,300. Per data from Angi, you can pay anywhere from $475 to $25,000, for most homeowners. The cost depends on the size, terrain, location, complexity, and topographical features.

Because they're expensive, it may be worth asking your neighbor if they’re open to splitting the cost. After all, it will provide clarity for both of you and help you steer clear of potential future issues.

What problems do encroachments cause?

The good news is that most encroachments tend to be relatively minor and can usually be remedied without any added expense and hassle. For example, cutting back a shrub that's grown into a neighbor's backyard.

Major encroachments, however, can cause some serious and costly problems.

Here are some issues that encroachments can cause:

• Title issues
• Difficulty selling
• Reduced sale price
• Potential loss of land
• Legal disputes
• Financing issues

Encroachment vs. easement: What’s the difference?

An easement is a legal term for a type of property right that allows another person, business, or entity access to a specific part of your property. For example, water lines, power lines, and other utilities, rights-of-way, and shared driveways.

Easements are agreed upon by both parties. While they're still agreed upon, easements can still cause some issues, such as:

• Blocked use
• Limited control of your property
• Increased maintenance costs
• Disputes over maintenance responsibilities and costs
• Decline in sales value
• Challenges selling the house

How to deal with a property encroachment

Should you find yourself faced with a property encroachment, taking the proper steps can help you figure out what to do to avoid further complicating matters:

1. Get a land survey

As mentioned, if you suspect your neighbor might be encroaching on your property, it's a good idea to get a professional land survey to confirm the property lines.

2. Talk with your neighbor

While it might be frustrating, start by talking to your neighbor and letting them know about the situation, especially for minor encroachments like an overhanging tree branch.

Chances are they might not be aware of the issue. If you can work things out directly with your neighbor, it can save you a lot of time and trouble, not to mention keep positive neighbor relations.

3. Grant your neighbor an easement

If it makes sense to do, grant your neighbors an easement. That way, it gives them access to the affected portion of the property. This can be a win-win situation.

If you're thinking about going this route, you'll want to negotiate specific terms with your neighbor. For example, include the specific area of property they can access, any compensation, and what's permitted and what's not. This can prevent further issues from popping up.

An easement must be formalized with a written easement deed that’s signed by both parties. They need to be recorded with the county clerk’s office and are usually recorded with the deeds to each neighbor's property.

4. Sell the land to your neighbor

Instead of granting an easement, you can also sell the land altogether and redraw the property line. That way, the neighbor gets access to the land they’re already using without having to worry about legal repercussions, and you're compensated for it.

5. Take legal action

If your neighbor won’t remove the encroachment and you can’t come to an agreement on a land easement or sale, you may have to take legal action to force them off your property. You'll want to work with a seasoned attorney well-versed in boundary disputes.

FAQ

Want to learn more about encroachment in real estate? Check out some of the frequently asked questions on the topic:

Is encroachment a criminal offense?

Encroachment is usually a civil offense rather than a criminal one. But it can lead to criminal offenses if, say, the neighbor is unwilling to remove it and trespasses on your land.

Should I buy a house with an encroachment?

An encroachment, especially a major one, can affect the property value and the home’s title. However, it may be worth reconsidering buying a home with one. While a minor encroachment isn’t necessarily a deal-breaker and most likely won't affect the property value, it could be a sign that your neighbor won’t be thoughtful of the property line and your space. So, you'll want to weigh the pros against the cons.

Can you move your neighbor's property off your property?

Speak to your neighbors directly before removing an encroachment. Unfortunately, even though belongings may be located on your property, moving things that aren’t yours could lead to growing tension with your neighbor and a host of legal issues.

Can my neighbor build right up to the boundary?

Whether a neighbor can build right up to the boundary depends on the local zoning law and building codes. As for trees, you'll need to check tree law, which is the rights each party has in matters of trees on or near their property.

Can I sell a house with an encroachment?

You can sell a house with an encroachment. However, it could affect the purchase price, assessed value, and interest from buyers.

The bottom line: Encroachment is an issue to resolve, not ignore

It might be tempting to leave an encroachment unaddressed and hope it goes away, but facing the issue upfront is important if you want to maintain positive relationships with your neighbors and protect your property rights. Minor encroachments like landscaping that crosses property lines can often be resolved through open communication, while major encroachments may require legal action. In extreme cases, ignoring an encroachment could lead to a prescriptive easement. Understanding how to resolve encroachments can help you avoid headaches down the road.

If you're shopping for a home, you can start the mortgage approval process by contacting Rocket Mortgage.