Introduction
Buying or selling a property is a significant financial transaction, and it’s essential to be aware of any potential issues that could affect the process. One such concern is an encroachment. In this blog post, we’ll dive into what an encroachment is, how it can impact the sale of a property, and steps to address it.
What is an Encroachment?
An encroachment occurs when a physical structure, such as a building, fence, or driveway, extends beyond the boundaries of a property and onto an adjacent property. This can be unintentional, due to a lack of accurate surveys or outdated property records, or it may result from a deliberate action.
Types of Encroachments
- Structural Encroachments: These involve physical structures like buildings, fences, or sheds that cross property lines.
- Overhanging Encroachments: These occur when a portion of a structure, such as a balcony or eave, extends onto an adjacent property.
- Subsurface Encroachments: These involve objects or structures that extend underground onto another property, such as foundations, sewer lines, or tree roots.
How Encroachments Affect Property Sales
- Legal Implications: Encroachments can lead to legal disputes between property owners. They may result in a loss of property rights and could potentially lead to costly legal proceedings.
- Reduced Property Value: Properties with encroachments may be perceived as less desirable and, as a result, their market value may be affected negatively.
- Financing Issues: Lenders may be hesitant to provide financing for properties with encroachments, as they represent a potential liability.
- Delays in the Sale Process: Discovering an encroachment can cause delays in the sale process as it may require negotiation, legal resolution, or even the removal of the encroaching structure.
Addressing Encroachments
- Obtain a Survey: A professional land surveyor can accurately determine property boundaries and identify any encroachments. This document will be crucial in addressing the issue.
- Open Communication: If an encroachment is discovered, it’s important for both parties involved to communicate openly and honestly. They can discuss potential solutions and negotiate a resolution.
- Legal Assistance: In some cases, legal action may be necessary to address an encroachment. This could involve filing a lawsuit or seeking a court-ordered remedy.
- Obtain an Encroachment Agreement: If both parties agree to a solution, an encroachment agreement can be drafted and signed. This document outlines the terms and conditions of how the encroachment will be managed.
Conclusion
Encroachments are a serious concern for property buyers and sellers alike. They can lead to legal disputes, delays in the sales process, and potentially affect the value of a property. It’s crucial to address any encroachments promptly and professionally, with the assistance of legal and surveying professionals as needed. By doing so, both parties can navigate the situation smoothly and reach a mutually agreeable resolution.