How do long-standing property encroachments affect home sales and what should buyers be aware of?
Long-standing property encroachments can be one of those hidden issues that don’t seem like a big deal at first, but they can create headaches later if buyers aren’t careful.
An encroachment occurs when a structure or improvement crosses a property boundary. Common examples include a neighbor’s fence extending onto the property, a driveway crossing a lot line, a shed built over a boundary, or landscaping that occupies part of a neighboring parcel.
For home buyers, the biggest concern is that an encroachment can create uncertainty about property rights. Even if the issue has existed for years without disputes, it may still affect future ownership, resale potential, title insurance coverage, financing, or future property improvements.
One thing many buyers don’t realize is that a long-standing encroachment doesn’t automatically mean the situation is harmless. A fence that’s been in the same location for decades may seem insignificant, but questions can arise if a neighbor decides to sell, build an addition, replace the structure, or formally challenge the boundary.
That’s why it’s important to review the property’s survey, title report, and any recorded easements or agreements during the due diligence period. These documents can help clarify whether the encroachment has already been addressed legally or if it remains an unresolved issue.
Buyers should also pay attention to how the encroachment affects the practical use of the property. For example:
- Does it limit future additions or renovations?
- Could it create disputes with neighboring owners?
- Will it affect fencing, landscaping, or access rights?
- Might future buyers be concerned about it when you decide to sell?
In some cases, sellers resolve encroachments before closing through boundary agreements, easements, or other legal arrangements. In others, buyers may negotiate repairs, credits, or price adjustments to account for the risk.
The key is not to panic when an encroachment is discovered. Many are manageable and have reasonable solutions. However, buyers should never assume that because an encroachment has existed for a long time, it won’t matter in the future. Taking the time to understand exactly what exists, how it affects ownership, and whether it has been properly documented can help prevent costly surprises after closing.
A good rule of thumb is this: if a structure crosses a property line, make sure you fully understand the legal and practical implications before moving forward with the purchase. A little extra investigation now can save a lot of frustration later.