What Does It Mean When a Property Is Encroached?
Published by Cash Flow Deals · Last updated 2026-08-05 · Published and reviewed for compliance by Camilo Palacio, a Florida Licensed Realtor
Encroachment means a structure, fence, driveway, or other improvement crosses over the legal boundary line onto a neighboring property. It typically shows up on a survey, and it can complicate a sale until it is resolved, either through an agreement between neighbors, a boundary line adjustment, or removing the encroaching structure.
| Factor | Traditional Route | Cash Flow Deals |
|---|---|---|
| How it's usually found | Surfaces during a buyer's survey or title search mid-transaction, which can delay or kill the deal | Title issues like encroachments are flagged and worked through as part of the closing process |
| Who resolves it | Seller often has to negotiate with the neighbor or arrange a survey or legal fix under deal pressure | Resolved as part of a coordinated closing process rather than a rushed mid-escrow scramble |
| Effect on timeline | Can add weeks while boundary issues get sorted before a traditional buyer's lender will fund | No buyer-lender title requirements forcing an artificial deadline |
Common Types of Encroachment
Fences built over the boundary line, sheds or garages that cross the property line, driveways, and even overhanging tree branches or roof eaves can all count as encroachments.
How Encroachment Gets Discovered
Most encroachments surface during a boundary or ALTA survey, often ordered as part of a sale or refinance. Some are discovered earlier when a neighbor disputes a fence line directly.
Why It Matters for a Sale
Title insurance policies sometimes exclude encroachment issues from coverage, and some mortgage lenders will not fund a loan until the issue is resolved or specifically insured around, which can lower buyer confidence in the deal.
How Encroachments Get Resolved
Common fixes include a boundary line agreement recorded with the county, an easement granted to the encroaching party, physically removing or relocating the structure, or a formal boundary line adjustment survey.
Encroachment vs Easement
An encroachment is unauthorized use of another's land. An easement is a legal right, often recorded, to use part of a property for a specific purpose. The two get confused often but mean very different things for a title.
Common questions
Does encroachment always block a sale?
Not always, but it usually has to be disclosed, and often resolved or specifically insured around before a lender will fund the loan.
How do I know if my property has an encroachment?
Ordering a boundary or ALTA survey is the standard way to check, and it is a routine part of many title and closing processes.
Can a neighbor force me to remove an encroaching fence?
It depends on state law and how long the encroachment has existed. Some states allow adverse possession claims after enough years have passed.
Who pays for a survey to check for encroachment?
Typically the buyer or seller, depending on local custom and what the purchase contract specifies.
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What this means for your options
Every path to selling a house has real tradeoffs. Cash Flow Deals is built for the middle: faster than a traditional listing, more money than a cash investor.
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
No repairs, no showings, no financing contingency on your side — our novation structure connects you with a bank-financed buyer at a price locked at signing. Usually within one business day.
See your selling options before you decide anything.