Definition
An encroachment occurs when a physical structure — a fence, shed, driveway, or even a roof overhang — crosses over onto a neighboring property's land. Surveys are typically what reveal an encroachment, and it can complicate a sale if the buyer's title insurance company isn't willing to insure over the issue. Solutions range from a simple signed boundary agreement with the neighbor to physically relocating the offending structure. For a homeowner preparing to sell, discovering an encroachment doesn't have to derail the deal, but it does need to be addressed clearly with the buyer and their title company before closing.
Example
When Sam ordered a survey before listing his house, it revealed that his detached garage sat eighteen inches over his neighbor's property line. He was worried at first that it might scare off buyers or delay the sale entirely once it showed up in the title search. Instead, he approached the neighbor directly and worked out a formal encroachment agreement acknowledging the garage's position and each party's rights going forward. Both sides had it reviewed by a local attorney before signing to make sure it would hold up over time. Once the title company reviewed and accepted the signed agreement, the sale closed without any further issue. Sam said addressing it head-on turned out to be far less dramatic than he had feared.