What Does “Encroachment” Mean in Real Estate?
Reviewed by: Brandon Brown
If part of your property crosses onto a neighbor’s land without permission, you have an encroachment, and understanding this issue is critical when you’re ready to sell your home in Southern California. This boundary issue can delay your house closing as a seller, complicate financing, or even cause buyers to walk away from the deal.
What Is the Definition of Encroachment in Real Estate?
An encroachment is a structure or feature, such as a fence, shed, or tree, from one property that extends over the legal property line onto a neighbor’s land without permission. This can become even more complicated when a property is already in the middle of a transaction. For example, once a seller enters the phase defined by under contract in real estate, any Unlike easements, which are legal agreements granting use of a property, encroachments are unauthorized. Discovering an encroachment creates a boundary dispute that can complicate a home sale. Common physical intrusions include:
- Fences: Built over the established property line
- Driveways: Pavement extending onto neighboring land
- Buildings: Sheds, garages, or additions crossing boundaries
- Landscaping: Tree branches, roots, or garden beds growing across lines, as overhanging branches and spreading roots commonly create neighborhood tensions
- Outdoor structures: Decks, patios, or pools overhanging property lines
Encroachment Examples and Types on California Properties
Encroachments range from minor issues to major structural problems. These situations are common on California properties, which often have older surveys or unclear boundaries.
Common Examples Neighbors See
Minor encroachments are small, unintentional crossings like overgrown shrubs or a misplaced fence post. Major encroachments involve permanent structures like garages or driveways on a neighbor’s land. Structural encroachments are the most serious, involving parts of buildings like room additions or balconies that cross property lines. Severity levels include:
- Minor issues: Small garden beds, overhanging branches, slight fence misalignment
- Major problems: Large retaining walls, driveways, permanent outbuildings
- Structural concerns: Room additions, porches, or garages crossing boundaries
These issues become particularly important when a seller begins preparing the property for listing. As homeowners use a “preparing your home for sale checklist”, they often discover boundary problems they didn’t know existed.
Encroachment vs Easement
An easement is a legal right to use part of another’s property for a specific purpose. The key difference is permission: easements are documented agreements, while encroachments are unauthorized. However, an unchallenged encroachment may become a legal easement over time through adverse possession, as a prescriptive easement can grant usage rights to someone other than the property owner.
Why Encroachments Matter in Property Transactions
An encroachment can delay or stop a home sale. Lenders often refuse mortgages for properties with boundary disputes, and title companies may not issue a clear title until the issue is resolved, just as they would with a house lien on your property. The title insurance industry’s work to maintain accurate property records mitigates $600 to $900 billion in risk exposure annually, highlighting why unresolved boundary issues create such significant concerns for lenders and buyers. These problems directly impact your sale:
- Financing delays: Buyers may struggle to get loans.
- Title complications: Ownership clarity is questioned.
- Reduced offers: Buyers may lower offers to cover resolution costs.
- Contract cancellations: Buyers may walk away to avoid the hassle, as backing out of a contract is common with encroachment issues.
What a Survey or Title Report May Show
A professional land survey identifies property boundaries and reveals encroachments. Title reports may also uncover documents indicating boundary problems. If you’re selling in Orange County, addressing an encroachment quickly prevents closing delays.
Options for Resolving an Encroachment
When you find an encroachment, several traditional paths can resolve it before your sale.
Negotiate with the Neighbor
For minor issues, talking to your neighbor often works best. You can create a formal easement to permit the use of or sell the affected land to resolve the dispute.
Remove or Modify the Structure
Physical structures like fences or sheds can be moved or removed. This clears the boundary line, eliminating the problem for future buyers.
Seek Legal Counsel
Major or disputed encroachments may require hiring a real estate attorney. Legal help is necessary when neighbors disagree on boundaries or the encroachment significantly affects property value. As legal experts recommend, you should speak with an attorney before attempting to resolve complex boundary issues or create formal agreements.
A Faster Way in Southern California: FlipSplit
Understanding the encroachment definition in real estate is complicated enough. Resolving encroachments takes time and money, adding stress when you need to sell quickly. FlipSplit offers a simpler solution by purchasing houses as-is, including properties with boundary problems. As a direct cash buyer, FlipSplit handles all complications involved in selling your house to a cash buyer, so you avoid negotiating with neighbors or hiring attorneys. We assess your property, make a competitive cash offer, and manage repairs after purchase. This allows sellers in LA County to avoid resolving boundary disputes before selling. FlipSplit’s approach eliminates traditional sale complications:
- Sell your house as-is for cash with existing encroachments
- Flexible timeline: Close in 72 hours or up to 90 days based on your needs
- Profit sharing: Receive additional money when we resell after renovations
- Transparent process: No hidden fees or commission costs
FAQs About Encroachment
Can you sell a house with an active encroachment issue?
Yes, you can sell with an encroachment, but you must disclose it to buyers and it may reduce your property value or complicate financing.
Who is responsible for fixing an encroachment before closing?
The property owner whose structure causes the encroachment typically pays for resolution, whether through removal or legal agreements.
How long does resolving an encroachment take during a home sale?
Simple agreements between neighbors might take days, while legal disputes can extend for months and delay your closing indefinitely.
Will buyers walk away from a house with boundary disputes?
Minor encroachments with clear solutions rarely stop sales, but major unresolved boundary issues are among the factors that stop a house from selling and cause many buyers to cancel their contracts.
Reviewed by: Brandon Brown
As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.
Sources:
- FindLaw. What Can You Do About an Encroachment? https://www.findlaw.com/realestate/neighbors/what-can-you-do-about-an-encroachment.html
- FindLaw. Property Line and Fence Laws in California. https://www.findlaw.com/state/california-law/property-line-and-fence-laws-in-california.html
- FindLaw. What Is a Prescriptive Easement? https://www.findlaw.com/realestate/land-use-laws/prescriptive-easements.html
- First American. Title Insurance Industry Mitigates $600 Billion in Estimated Risk Exposure Annually for Home Buyers, Lenders: New Study from First American Chief Economist. https://www.firstam.com/news/2024/title-industry-600-billion-risk-exposure-20241001.html
