Blog Post

Encroachment: Definition And What It Means In Real Estate

Dusty Rhodes • February 27, 2023

Many people don’t realize that coming up with a down payment and closing on your house is only the beginning of homeownership. Once you move in and begin making the property your own, many other challenges can arise.


For instance, many homeowners are surprised to find that relationships with neighbors can be a source of stress and frustration. And one of the biggest problem areas is often encroachment.


Encroachment means one of your neighbors seems to not notice – or not care – that their tree, garden or shed – to name a few examples – is encroaching on your land. If left unresolved, encroachment can lead to a host of issues, so it’s better to address it sooner rather than later.


What Is Encroachment By Definition?


Encroachment in real estate is defined as one property owner violating their neighbor’s rights by building or extending some feature and crossing onto their neighbor’s property lines.


Sometimes the encroachment is intentional. Structural encroachment, for instance, occurs when a neighbor deliberately builds property on land they don’t own. However, this isn’t often the case, especially when there’s some ambiguity about the exact location of the property lines.


While encroachment may seem harmless, it can lead to liability issues, damage to your property, and problems at the time of sale.


But how do you know if your neighbor is encroaching on your property? Here are some encroachment examples to watch out for:

  • Your neighbor builds a fence, and it extends onto your land
  • A structural addition to your neighbor’s home extends beyond the legal property boundaries
  • An overgrown garden or hedge crosses onto your land


Encroachment Real Estate Problems


When encroachment is only causing a minor issue, you might overlook it since it’s not having a major impact. But even if you aren’t facing encroachment issues in your day-to-day life, they can be problematic when you decide to sell your home.


Because encroachment can make it hard to establish property lines, it can create title concerns when you’re trying to sell your home. Many states require property surveys before you can sell your home, and any encroachment will be noted.


While the overgrown hedge or tree overhanging your yard may not bother you, it may bother the person who’s interested in buying your home. Along with complicating your ability to sell your home, encroachment could lower the amount you end up receiving once the home is sold.


What Are Encroachments Vs. Easements?


It’s easy to confuse a real estate encroachment with an easement. Both involve a homeowner making an extension onto their neighbor’s land, but an easement is agreed upon by both parties.


Easements often occur because your neighbor needs to access some part of your property for practical reasons. For instance, they may need to cross your backyard to get to a nearby beach, and you grant them permission to do so.

One of the problems with unaddressed encroachments is that they can become prescriptive easements. A prescriptive easement is created when the encroacher – perhaps a neighbor or trespasser – openly uses a portion of your property without your knowledge or consent, and it grants them a legal right to use your land if their encroachment is unreported over a period of time. The time frame and specific requirements to turn an encroachment into an easement depend on the laws in your state.


If an encroachment goes unaddressed for long enough, it can also create an unrecorded encumbrance on your land. This means that your neighbor now holds a right to some aspect of your property.


Options When Dealing With Property Encroachments


If you believe one of your neighbors is infringing on your land, it’s best to politely handle the situation before letting too much time pass. Most encroachments can be resolved amicably and in a way that’s satisfactory for both parties.


Below are three steps you can pursue when dealing with an encroachment issue.


Talk With Your Neighbor

It’s wise to start by talking with your neighbor and explaining your concerns. This is always ideal, especially if the encroachment is minor and can be easily addressed, like in the instance of an overhanging tree branch.


Try to go into the conversation with the assumption that the encroachment is unintentional. This approach will likely help you come across friendlier when confronting your neighbor.


Sell Your Land, Or An Easement On Your Land, To Your Neighbor

Another option for homeowners is to sell an easement, or the affected portion of the land, directly to their neighbor. This way, once the property clerk records the transaction, all uncertainty disappears and any future problems are averted.


Take Your Neighbor To Court

If the previous two options don’t work and your neighbor isn’t willing to resolve the issue, you can take them to court. This approach is always the least desirable path because it’s slow, expensive and may create lingering tension between you and your neighbor.


And unfortunately, taking your neighbor to court won’t necessarily resolve the issue in a favorable way since the court could determine that your neighbor’s trespass on your land is legitimate.


The court could decide that it constitutes a prescriptive easement, which then needs to be recorded. If the court rules that your neighbor is unlawfully trespassing on your land, the court will order your neighbor to remove the offending feature.


The Bottom Line: Encroachment Is A Problem To Be Resolved, Not Ignored


Nobody likes conflict with their neighbors, but it’s always a possibility. Intentional and unintentional encroachments happen, and it’s important to deal with the issue as soon as you notice it.


Avoiding the issue could cause the encroachment to turn into a prescriptive easement, and there’s not much you can do at that point.

Source: Rocket Mortgage


Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

Share

By Dusty Rhodes February 17, 2025
Spring is the busiest season in the housing market. It’s the time of year when buyers are most active – that means it’s when homes sell faster and for top dollar. If you’ve already got a move on your mind, why not list this spring and take advantage of the added buyer demand ? Since spring is just around the corner, now’s the time to start getting your house market-ready. You’ve got just over a month to do the prep work. And while that may sound like a decent amount of time, it’s going to go by quickly. And you won’t want to rush through this important task – especially this year. The Right Repairs Will Matter More This Spring Right now, two things are true. There are more homes on the market than there have been in years. And buyers are being extra selective. That combination means you need to invest some time and effort in making strategic repairs . And many homeowners already have a jump on this work. In the 2025 Outlook for Home Remodeling , Carlos Martin, Director of the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University , explains : “. . . homeowners are slowly but surely expanding the pace and scope of projects compared to the last couple years.” And the most common projects they’re tackling are replacing water heaters, HVAC units, and flooring. Energy efficiency is a key consideration too, based on home improvement data from the Census. What To Prioritize as You Plan Ahead But just because that’s what other homeowners are doing, it doesn’t mean that’s what you have to tackle. Think about what you’d want to see if you were a buyer. Focus on quick wins that are easy to knock out with the time you have – but, don’t ignore key repairs, especially ones you think could turn off buyers. While big-ticket items like replacing an old roof or outdated flooring may seem daunting, they can pay off – especially if you focus on projects with the best return on investment (ROI). An agent’s expertise is key in narrowing down your list to what’s actually worth it. They know what buyers in your area want and they also have data like this report from Zonda to guide you on which updates have the best ROI ( see green in the graph below ):
By Dusty Rhodes February 10, 2025
Among the nation’s 200 largest housing markets, these 41 metro areas now have active inventory at or above 2019 pre-pandemic levels. While homebuyers and home sellers still see headlines about the housing market being a seller’s market and national home prices reaching all-time highs, a deeper look reveals that several regional housing markets have shifted, giving homebuyers some power. During the pandemic housing boom, from summer 2020 to spring 2022, the number of active homes for sale in most housing markets plummeted as homebuyer demand quickly absorbed almost everything that came up for sale. Fast-forward to the current housing market, and the places where active inventory has rebounded to 2019 levels (due to strained affordability suppressing buyer demand) are now the very places where homebuyers hold the most power. At the end of January 2025, national active inventory for sale was still 25% below January 2019 levels. However, more and more regional markets are surpassing that threshold. Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025.
By Dusty Rhodes February 3, 2025
Leaving your current house and moving to another one gives you a few options. While most homeowners choose to sell outright, many opt to keep their old home and rent it out instead. This decision can be influenced by several factors: a strong rental market in your area, the advantage of a low current mortgage rate, or challenges in selling the house at the desired price. If you’re wondering whether to sell your house or rent it out, there are a few things to consider. Key Takeaways The answer depends on your circumstances, your housing situation, and your current finances. Selling your house may be the right option if you need the proceeds to purchase your next home or could make a profit. Renting out your house may be the right choice if you’re planning to live in your home again, have a low mortgage rate, or are looking for more income. What are the rental prices in the area? Does it make sense to rent your house? In some locations, rental prices can easily cover your mortgage payments. Depending on how much you have left on your mortgage or if you have a low mortgage rate, the rental income from your old house may cover the monthly payments, plus homeowners insurance and property taxes you pay. However, if you’ve recently purchased your house and are looking to rent it out, your mortgage payments may be too high for a lease to cover them. Take a look at houses that compare to yours with regard to size and location. This should give you a ballpark figure on what price your house can lease for. If you aren’t on a tight timeline to leave your current home, take notice of how quickly similar houses in the area take to lease. If rental properties stay empty for more than a few weeks, you may have trouble finding consistent tenants. A real estate agent can help match you with a tenant or give you an idea of your rental prospects. They can also give you insight into whether your location is desirable for tenants. For instance, if it’s near a university or larger employer, you may be able to rent to students or to employees who relocate for that large employer. However, if the house is far from the city center, or you’re located in a residential neighborhood, you may have trouble finding tenants. Do you need equity from your current home? Why are you leaving your old house? Are you purchasing a new home? If you’re planning to upgrade to a larger home, you may need the money from the sale of your old one to place a down payment on your new house. If you have enough equity in your current home, it may make more sense to sell the house instead of renting it. If you’re able to afford the down payment on your new home without selling your current one, usually about 20%, then renting out your old one makes sense. What is the market like in your area? The housing market isn’t consistent across the country, and even different parts of larger metro areas may be more or less robust. If the current market is slow and you think you can sell your home for a higher price in a few years, then it may make sense to rent the house until housing prices rise again. However, if it’s a sellers’ market and you can get the maximum selling price for your home, then selling it may be the better option. Keep in mind that houses that have been rental properties, often have a harder time selling afterward. You may have more wear and tear in the home if multiple tenants have lived there, which may mean spending more to prepare it to show and sell. An experienced real estate agent in your area can help you determine the top vales of your home and whether or not the current market can support that selling price. Agents who have been in the area long enough to become familiar with the housing market are in a good position to help you determine the best time to sell. Will you live in the house again? Consider whether you plan to live in the house or the area again. You may be in a situation that requires temporary relocation, and you plan to return to the original home in a few years. Having a good tenant to live in the house can ensure that your home stays in good condition instead of sitting empty. You’ll also have income from the rental property and building equity in the old home and your new one. Do you have the time and money to be a landlord? For those who are new to investing in rental properties, it may seem easy to rent out their current home and enjoy passive income while paying down their mortgage. However, if this is your first time being a landlord, you may find leasing your property yourself challenging. First, landlords are responsible for making major repairs to the house. Landlords have to fix things like broken pipes, defunct HVAC systems, and structural damage, among other essential repairs. If you don’t have a few thousand dollars on hand to take care of these repairs, you could end up in a bind. There are specific laws in place to protect tenants, including the landlord’s reliability to make major repairs on the house. In addition, there are certain things that you can and can’t do as a landlord. Being aware of Fair Housing Laws is critical to make sure that you don’t inadvertently violate them. Do you need a property manager? A property management company can help vet tenants, collect rents, and arrange for repairs and maintenance on your behalf. A good property management company is also up-to-date on current requirements in your state for landlord obligations. If you’re planning to just lease your house, you may choose to manage the repairs and tenant search yourself, especially if you live nearby. However, if you’re planning to build a portfolio of rental properties, then having one company manage them may be a better option. Property managers can help ensure that your house or houses stay full, including working with local agents, having open houses for prospective tenants, and quickly running background and credit checks for those applying for a lease. As a passive landlord in this situation, you’re able to free yourself of the obligation for emergency repairs and the time searching for people to live in your rental property. Consider rent-to-own Another option when you’re considering whether to sell or rent your house is to engage in a rent-to-own agreement. In these situations, the tenant will place a down payment on the house and make lease payments to you for a specified period. After the lease is up, then the tenant has the option to purchase the home. During the time they’re making lease payments, a portion of those payments will go toward the final price of the house. This option may work for you if the housing market in your area is stagnant, allowing you to cover the mortgage without entering into a long-term obligation to a rental property. These rent-to-own options can be beneficial for tenants, too, as their financial situation may improve enough over time that they’re able to obtain a mortgage. What makes a house a good rental property investment? Does your house have the potential to be a good income property? There are a few things to consider before listing your house for rent. You may have to make some minor repairs and upgrades to your property to attract good tenants who will take care of the house and pay on time. Fresh paint and carpet are usually a must and are required in some areas. The location of your investment property is one of the most important things in determining whether you’ll have steady tenants or be responsible for covering the mortgage out of pocket if the house sits empty. The home’s location can easily make the difference between having a steady tenancy and losing money on the rental property. Final thoughts on renting or selling your home Deciding whether to sell your house or rent depends on carefully analyzing the area and the property’s desirability. Will the area be in high demand for renters, or is it likely that you’ll struggle to find tenants? You’ll also need to take a look at your finances and determine if selling or renting will give you the best return on your investment. Choosing the right real estate agent to advise you in this process can help you answer your question of whether to sell or rent your house.
More Posts
Share by: