Real Estate Trends & Advice - Encroachment Issues

Encroachment Issues
By Jim Palmer Jr.

Detecting encroachment issues is a frequent occurrence in the real estate profession. That discovery usually happens at point-of-sale because a buyer insists on having boundary lines identified. Many sellers cannot do on their own because there has never been an official survey with visible markers placed to document boundary locations.

Any time roads, buildings, fences, or other structures belonging to a neighbor are physically outside their own boundaries and have been placed on someone else’s property (usually unintentionally), it is considered an encroachment. The sale of property always creates heightened awareness of boundary issues along with the urgency to cure such.

There are several ways to peacefully resolve encroachment problems; 1) create an easement that allows the use. Such uses are usually perpetual in nature, but can expire or be expunged by the benefitted owner. 2) License (written permission) can be granted for such use, but could later be rescinded. 3) The offending property owner could be allowed to purchase that portion of property where the encroachment exists OR trade for equal portions of their own property. In either of these two cases a Lot Line Adjustment must be completed in the governing county.

When a Lot Line Adjustment application is completed, it includes legal descriptions for both parcels and a legal description of that portion(s) being transferred. That process requires proof of ownership in the form of a title report or plat certificate for all properties involved, additionally taxes for the full year must be paid. The application requires “wet” original signatures that have been notarized to prove authenticity of all vested parties.

That means any lien holder must also sign, approving that change in collateral. Getting those signatures sometimes proves to be the biggest challenge in the whole process because it can be difficult to find the authorized signatory to approve the change.

Once the application has been completed and the fee has been paid, the county reviews the lot adjustment request and offers approval (or not) within a short time period (usually about 2 weeks). After approval the transaction can close, meaning that a deed is then recorded, documenting the official transfer. The approval of the Lot Line Adjustment request does not transfer ownership.

Any of these methods and process is facilitated best when all of the parties are willing to negotiate and participate to cure the issue of encroachment. Some cases may only be resolved by lawsuit, but that alternative always creates controversy between neighbors, and who wants that?

 

 

 

 

Jim Palmer, Jr.
509-953-1666
www.JimPalmerJr.com

See my blogs at:
www.RealEstateMarketPlc.com
Two Multiple Listing Services
Professional Representation for Buyers & Sellers
Residential • Acreage • Residential Acreage
Waterfront • Ranch • Farm