What Is an Encroachment?

An encroachment occurs when a structure or object extends beyond its legal boundary onto another person’s property without permission.

Why It Matters

Encroachments can lead to legal disputes, affect property value, and complicate real estate transactions. They may also limit how a property can be used or developed.

How Encroachments Work

Encroachments typically involve:

• boundary disputes
• structures crossing property lines (fences, buildings)
• survey identification of issues
• legal or negotiated resolution
• possible removal or compensation

Encroachments may be discovered during property surveys or inspections.

Example

A neighbor builds a fence that partially sits on another property owner’s land.

Encroachment vs Easement

• Encroachment is unauthorized use.
• Easement is authorized use.

FAQs About Encroachment

Can encroachments be resolved?
Yes, through legal agreements or removal.

Do they affect property sales?
Yes, they must often be disclosed.

How are they discovered?
Through property surveys.

Related Terms

• Easement
• Property Line
• Survey
• Real Property
• Zoning

Back to All Financial Terms