BIC TIP #1156: The Dreaded Encroachment
You may have heard the age-old adage: every encroachment is an encumbrance, but not every encumbrance is an encroachment. It sounds like a riddle from pre-licensing class, and it is. But it also points to a real-world problem that catches buyers off guard all the time. Stephen Long explains what an encroachment is and why there is really only one way to know if you have one.
Encroachment, Defined
An encroachment simply means someone or something is across your property line. A neighbor builds a fence that wanders a few feet onto your land. Part of a shed, a driveway, or even half of a building sits on the wrong side of the line.
Encumbrances are the broader category, covering things that burden or affect a property, which is why every encroachment counts as one. But plenty of encumbrances, like many easements, involve no one crossing the line at all.
Fences Lie
Here is the trouble. Buyers walk a property and assume the fence marks the boundary. Stephen notes that the fence line is often not actually on the property line. People put up fences for convenience, follow old markers, or simply guess.
Nobody can tell where a boundary truly lies by eyeballing a yard. That is how encroachments go unnoticed until a dispute, a refinance, or a future sale brings them to light.
Get the Survey
The only way to know whether you have an encroachment is to get a survey. A survey shows where the boundaries really are and whether anything crosses them.
Stephen always highly recommends that buyers purchasing real estate in North Carolina get a survey, and he encourages getting one any time you can. It is far better to discover a problem during due diligence than after closing, when your buyer owns it.
The Practical Takeaway
An encroachment is something or someone crossing the property line, and the fence is not proof of where that line is. The only way to know for sure is a survey. Encourage your buyers to get one every time they can. It is one of the best tools they have for avoiding a boundary headache down the road.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
