Encroachment
An encroachment happens when a structure, fence, or improvement from one property extends onto a neighboring property or into a public right-of-way — and it can kill a real estate deal fast.
Your neighbor builds a fence and it’s 18 inches over the property line. Their garage overhang extends 2 feet into your airspace. Your deck is built partially on the city’s right-of-way. These are all encroachments, and they create legal headaches for everyone involved.
Why It Matters When You’re Buying
A survey reveals encroachments, and lenders take them seriously. If the neighbor’s shed sits 3 feet onto the property you’re buying, the title company may refuse to insure the title without an exception. Your lender may refuse to close entirely. Even a 6-inch fence encroachment can stall a $400,000 transaction.
Resolving encroachments costs anywhere from $0 (if the neighbor agrees to move the fence) to $10,000+ (if it goes to court or requires demolishing a structure). The average boundary dispute lawsuit runs $3,000-$8,000 in attorney fees.
Watch out: If an encroachment goes unaddressed for long enough (typically 10-20 years depending on the state), the encroaching neighbor could claim adverse possession — they’d legally gain rights to that strip of your land. Don’t let encroachments slide. Get a survey before buying any property and address issues immediately.
Encroachments fall into three categories: minor (a fence or hedge slightly over the line — usually settled with a conversation), moderate (a driveway, deck, or patio extending onto neighboring land — often requires a formal easement or removal), and major (a building or garage sitting partially on another lot — potentially requires demolition or expensive legal agreements). The severity determines both the resolution approach and the cost.
The fix? Get a fresh survey ($400-$800) and compare it to the existing one on file. If encroachments exist, negotiate a resolution before closing — either removal of the encroaching structure, a written encroachment agreement, or an easement that formally grants permission. Your title insurance may or may not cover encroachment claims depending on whether a survey was done.
Insurance implications matter too. If your home encroaches onto a neighbor’s property, your title insurance may not cover the encroaching portion. Similarly, if a neighbor encroaches onto your land, your policy may exclude coverage for disputes related to encroachments that were visible at the time of purchase — another reason to get a survey before closing.
What if my neighbor’s structure is on my property?
Start with a conversation, not a lawsuit. Show them the survey. Many encroachments are accidental — the neighbor had no idea their fence was 2 feet over the line. If they won’t cooperate, you can file a lawsuit to force removal or seek damages. But acting quickly is critical — in many states, waiting too long can actually give your neighbor a legal claim to the encroached land.