Why It Matters
Encroachments matter because they create competing claims over the same strip of land. If a garage wall sits 2 feet inside your neighbor's lot, your neighbor holds an actionable trespass claim — and potentially adverse possession rights if left unchallenged. Lenders flag material encroachments on title commitments and sometimes refuse to fund until the issue is resolved.
At a Glance
- Physical crossing of a property line by a fence, wall, driveway, deck, or other structure
- The encroaching structure can belong to the neighbor or to the subject property itself
- Discovered by a current boundary survey — title searches and visual inspections miss most encroachments
- Lenders require an ALTA survey for most commercial deals; residential lenders typically do not
- Can cloud title and reduce resale value until resolved
- Encroachments older than the state's adverse possession period can ripen into a permanent ownership claim
- Remedies: remove the structure, grant an easement, or adjust the boundary by recorded agreement
- Title insurance often excludes encroachments that a current survey would have revealed
How It Works
What constitutes an encroachment. Any structure that crosses a recorded property line without legal authorization — a fence installed 18 inches over the line, a garage wall overhanging the neighbor's lot, a driveway poured past the boundary. Intent is irrelevant: a contractor miscalculating setbacks creates the same title problem as a deliberate land grab.
How they're discovered. A current boundary survey is the only reliable method. Title companies verify legal descriptions — they don't confirm whether physical structures match those descriptions. You can close on a property with a garage wall crossing the side lot line and never see it in the title commitment. If the property has any structure near a lot line, order a survey before the inspection period closes.
How they affect title and financing. A material encroachment involving a permanent structure can prompt the title company to add a Schedule B exception excluding that strip from coverage. Commercial lenders running ALTA surveys will require resolution as a closing condition. Residential lenders often rely on no survey at all, so the risk passes silently to the buyer.
Resolution options. Remove the encroaching structure, grant a written license allowing it to remain as a revocable personal right, record a formal easement granting permanent use of that strip, or execute a boundary line adjustment deeding the strip to its actual occupant. License agreements are fastest but weakest — they don't transfer with the property. A recorded easement or lot line adjustment is the durable fix.
Real-World Example
Kevin made an offer on a 1960s ranch in suburban Columbus for $287,500 — slightly under market. His lender didn't require a survey, but Kevin paid $475 for one after his inspector flagged the detached garage as unusually close to the west lot line.
The survey found it: the garage's north wall crossed the neighboring lot line by 3.1 feet. The structure had stood there since at least 1987. Kevin's attorney confirmed Ohio's 21-year adverse possession period hadn't run — the prior owner purchased in 2011, resetting the clock.
The neighbor refused an easement. Kevin went back to the seller. Price reduction: $14,200. He used part of it to record a boundary line license — not a permanent fix, but enough for the lender to fund.
He closed. But if the neighbor ever sells to someone less cooperative, the license is revocable. Fourteen thousand dollars bought a workable situation, not a clean title.
Pros & Cons
- Discovering an encroachment before closing gives you leverage — sellers often cut price rather than resolve the dispute
- Minor encroachments (small eave overhangs, landscape edging) rarely affect use or resale in practice
- A boundary line adjustment permanently resolves the issue and clears title for future buyers
- Permanent structures on a neighbor's lot create ongoing liability — removal can be demanded at any time
- Resolution costs add up fast: surveys, attorney fees, recording, and potential demolition
- Some lenders won't fund until a material encroachment is resolved, regardless of price adjustments
- Standard title policies exclude encroachments a current survey would have found
Watch Out
No survey means no encroachment protection. Most residential purchases skip the boundary survey to save $400–$800. If the property has a detached structure, driveway, or fence near a lot line, pay for it. An undiscovered encroachment costs far more to fix after closing.
The adverse possession clock is running. In most states, open use of a strip of your land for 10–21 years without challenge can ripen into a legal title claim. Buy with an unchallenged 15-year encroachment and you may be three years from permanently losing that strip — with no title insurance coverage if a survey would have revealed it.
License agreements don't transfer. A license from the neighbor ends when the neighbor sells — zero protection for the next buyer. Insist on a recorded easement or boundary line adjustment. Anything less is a defect you'll face at resale.
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The Takeaway
An encroachment is a title problem that walkthrough inspections miss and standard title searches often skip. It shows up on a current survey, and only there. For any property with structures near lot lines, the $400–$800 survey fee is the cheapest insurance available before you commit.
If a survey turns one up, treat it as a negotiating event — price the resolution, adjust the offer, and close with a recorded fix.