BIC TIP #1327: Encroachments Cloud the Title
An encroachment can be a problem. Stephen Long, your Notorious BIC, explains why it matters and how it can get resolved before closing.
What Is an Encroachment?
- Part of a property crosses over another property line
- It could be a fence, a barn, a building, or even the house itself
- It often shows up on a survey
Why It Matters at Closing
The standard Offer to Purchase and Contract calls for clear and marketable title. If there is an encroachment, the title is not clear and marketable, and that issue has to be resolved before closing. There are several ways to do it: an encroachment easement, removing whatever is encroaching, or a survey followed by a purchase of the encroaching portion with both parties in agreement.
The Practical Takeaway
Order the survey early and read it closely. If something crosses the line, bring in the closing attorney and work on a solution well before the closing date. Clear the title and you will be great.
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.