Short Answer
An encroachment occurs when a structure on your property extends onto a neighbor's land, or vice versa. Common encroachments include fences, sheds, driveways, and decks that cross property lines. You must disclose encroachments to potential buyers. Encroachments can complicate a sale because they create uncertainty about property boundaries. Options include getting a survey, negotiating a boundary line agreement, obtaining title insurance that covers the encroachment, or resolving the encroachment before closing.
Encroachments are a common issue in older neighborhoods where fences and structures were built without formal surveys. If your fence is two feet onto your neighbor's property, that is an encroachment. If your neighbor's shed extends onto your land, that is also an encroachment. When selling a home with an encroachment, you must disclose it. Most buyers will be concerned about potential legal issues and may ask for the encroachment to be resolved before closing. Resolution options depend on the situation. If the encroachment is minor and both parties are agreeable, a boundary line agreement can formalize the arrangement. This is a legal document signed by both parties that adjusts the property line to match the actual use. If the encroachment is significant, you may need to remove the structure or negotiate a permanent easement. Title insurance may offer coverage for certain encroachments, but it depends on the policy. Your real estate attorney can help determine the best approach for your specific situation.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Encroachments are very common, especially on smaller lots with older fences. Most of the time, they are easy to resolve with a conversation with your neighbor. I have helped sellers get a simple boundary line agreement signed before closing for a few hundred dollars in legal fees. The key is addressing it rather than hoping the buyer does not get a survey. If you suspect you have an encroachment, let us figure it out early so it does not become a last-minute crisis at closing.
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