Property encroachments can be found at any time, but they are typically discovered during the process of a sale when more investigation and scrutiny goes into a property’s specific boundary lines. Sometimes these encroachments are relatively minor and can be handled with a quick call to your neighbor, while other times they can be much more serious and jeopardize the entire sale. In today’s blog, we take a closer look at some different types of property encroachments that could cloud a title during the process of a sale.
Forms Of Property Encroachment
First, let’s break down exactly what an encroachment is. At the most basic level, an encroachment is an illegal or unpermitted intrusion onto a person’s property. It doesn’t matter if the encroachment was intentional or unintentional, they will typically need to be resolved if they become a problem for the property owner. Let’s take a closer look at different types of encroachments that could affect a commercial property:
- Minor Encroachments - Minor encroachments are typically a rather temporary and easily fixable type of encroachment onto your property. For example, let’s say that your neighbor built a small garden that extended onto your property, or some of their shrubs have grown a bit and now extend past the property line. Talking to your neighbor and showing them a boundary survey that highlights the encroachment typically leads to a quick fix. You can also take legal action in the event that minor encroachments on your property go unaddressed despite your previous efforts to resolve them.
- Major Encroachment - A major encroachment typically takes a little more time and money to resolve, and disputes can arise if you and the other property owner can’t come to an agreement as to how the problem will be fixed. For example, let’s say that your neighbors have some large oak trees on their property, but some big branches extend into your property. You want to expand your parking lot into this area or build a commercial shed on the encroached area, and you find that your insurer will not insure the structure until those encroaching branches have been cleared. Your neighbor may be legally obligated to pay to have the tree addressed so that their branches are no longer causing you a liability issue.
- Structural Encroachment - Another type of encroachment we see is structural encroachment. Perhaps your neighbor accidentally built part of their storage shed on your property, or a fence was actually erected on your property. As you can imagine, a structural encroachment is typically costlier to resolve because a structure needs to be removed or moved.
You may not really care that an encroachment exists or that it was done unintentionally, especially if it’s not really causing you any real harm. However, if you ever decide to sell the property, these encroachments will need to be cleared so that the property can be free of encroachments and title clouds before the new owner takes over. Addressing any known encroachments well in advance of listing your property can ensure you don’t run into any costly delays once offers start rolling in.
If you want to learn more about encroachments or how to address outstanding title defects prior to buying or selling commercial property, reach out to the experienced team at Commercial Partners. Let us help you ensure your next commercial transaction goes smoothly. For more information, give our team a call today (612) 337-2470.