Encroachment Definition
Published by Cash Flow Deals · Last updated 2026-08-04 · Published and reviewed for compliance by Camilo Palacio, a Florida Licensed Realtor
An encroachment is when part of a structure or object, such as a fence, shed, driveway, roofline, or even tree branches, physically crosses the legal boundary onto a neighboring property. You usually discover it through a boundary survey or title review before closing, and your lender or title company may require a resolution before your sale can fund. You can compare our Fast Cash Offer, where we buy your house as-is and close, with our Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. You choose.
| Factor | Traditional Route | Cash Flow Deals |
|---|---|---|
| Checking for an encroachment before you buy or sell | Reading old fence lines and hoping the listing description is accurate | Ordering a current boundary or ALTA survey and having a title company review it |
| Understanding your legal options if one is found | Guessing at whether it's a minor issue or a real problem | Getting a real estate attorney to explain the difference between an easement, a license, and removal |
| Resolving a dispute with a neighbor | Handling it informally and hoping it doesn't resurface at your next sale | Getting the resolution documented and recorded so it doesn't reappear as a title issue later |
What Counts as an Encroachment
An encroachment is any physical intrusion of a structure or object across a property line onto a neighbor's land. Common examples include a fence built a few feet over the actual boundary, a shed or garage that partially sits on the wrong lot, a driveway that extends past the line, roof overhangs, and even tree branches or roots crossing over. Encroachments can also happen below ground, like a utility line or septic system installed across a boundary without the proper easement in place.
How Encroachments Get Discovered
Most encroachments surface through a boundary survey or during a title review ahead of closing. The American Land Title Association sets the standards for the land title surveys commonly used in real estate transactions, and those surveys are specifically built to flag encroachments, easements, and other boundary issues that could affect ownership. Encroachments can sit unnoticed for years, sometimes decades, between neighbors who never had a reason to check, until a sale, refinance, or new construction project triggers a fresh survey.
Encroachment vs Easement vs Adverse Possession
These three terms get confused constantly, but they mean different things. An encroachment is an unauthorized physical intrusion onto someone else's land, it isn't legally permitted. An easement is the opposite: a legal right, recorded or agreed to, allowing someone to use part of another person's land for a specific purpose, like a shared driveway or a utility line. Adverse possession is a separate legal doctrine where, under specific state law conditions met over a long period of open and continuous use, an encroachment can eventually convert into an actual legal claim to the land. That's a real risk of letting an encroachment sit unresolved for years, not a common outcome, but a real one.
How to Resolve an Encroachment
Resolution options generally include a written license or agreement allowing the structure to stay as-is, a formal recorded easement, a boundary line adjustment that legally redraws the property lines to match reality, physically removing or relocating the encroaching structure, or in long-standing cases, addressing an adverse possession claim through the courts. Which option makes sense depends on how significant the encroachment is, how the neighbors get along, and what a lender or title company will accept before funding a sale.
How Encroachment Affects a Home Sale
An unresolved encroachment can delay or derail your closing. Lenders and title companies routinely require a known encroachment to be addressed through a recorded agreement, removal, or an insurance endorsement before they will fund the loan or issue a clean title policy. Title insurance often specifically excludes coverage for encroachments that a current survey would have revealed, so getting a survey early helps you and your buyer discover the issue before underwriting. With our Fast Cash Offer and Premium Cash Offer, you choose the path that fits your situation. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. On Premium, only what your buyer's lender requires gets fixed, with repair costs settled from the sale proceeds, from our share. On Fast Cash, we buy your house as-is, with no repairs for you to make. For either offer, the number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. If your Premium buyer's loan falls through, that is our problem, not yours, and you can still take the Fast Cash Offer at its own number instead of proceeding with the Premium Cash Offer.
Common questions
Can I be forced to remove a fence that's on my neighbor's land?
Generally yes, if the fence is confirmed to be encroaching and the neighbor objects, though the exact outcome depends on state law, how long the fence has been there, and whether any adverse possession claim could apply. A property law attorney can tell you where a specific situation actually stands.
Does title insurance cover encroachments?
It depends on the policy and when the encroachment was discovered. Many standard title policies exclude encroachments that a current, accurate survey would have shown, which is why an updated survey before closing matters even when an older one already exists.
What's the real difference between an encroachment and an easement?
An encroachment is unauthorized, someone built onto land they don't have rights to. An easement is a legal right to use another person's land for a specific purpose, and it's typically recorded or formally agreed to. One is a problem to fix, the other is a normal, legal arrangement.
Can a small encroachment eventually become the neighbor's legal right?
In some states, yes, through adverse possession, if the encroachment is open, continuous, and unchallenged for a long enough period defined by that state's law. This is exactly why encroachments shouldn't be ignored even when they seem minor.
Who pays for a survey to check for encroachment?
This is negotiable and varies by local custom and by contract. In many transactions the buyer orders and pays for the survey as part of due diligence, but sellers sometimes provide an existing survey or agree to split the cost, especially if a boundary question already exists.
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What this means for your options
Every path to selling a house has real tradeoffs.
Wait and see
Keep the property as-is and hope conditions improve. The mortgage, insurance, and upkeep keep costing money while you wait, with no set date for things to turn around.
List with a traditional agent
Standard MLS listing, typically 5-6% in commission, and a financed buyer whose deal depends on appraisal, inspection, and lender approval — any of which can fall through after weeks on market.
Sell to Cash Flow Deals
Two offers for your house, Fast Cash or Premium Cash, and you choose. Cash: Cash Flow Deals buys the house as-is and closes. Premium: More money. A pre-approved FHA or conventional buyer we already have buys directly from you.
See your selling options before you decide anything.