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ENCROACHMENT AGREEMENTS
ENCROACHMENT AGREEMENTS
    Almost every real estate practitioner has had the experience of handling the closing whereby a survey reflected that a fence or other structure located on the subject property or an adjoining property was an encroachment upon the neighbor’s property.  While title insurance companies are routinely giving the lender affirmative coverage for such encroachments, it is important to explain to the purchaser his or her obligations relating to such encroachment and in certain circumstances to draft an Encroachment Agreement to deal with the same.  In considering whether an Encroachment Agreement is necessary or not, the real estate practitioner should consider the type of structure which is encroaching, the amount of the encroachment onto the neighbor’s property, the parties who are involved in the encroachment situation and the cost associated with remedying the situation should it become necessary.
    In situations where a survey reveals that a young couple’s split rail wooden fence encroaches on their parent’s adjoining property by a distance of six inches, it is my office’s general practice to point out the encroachment to the young couple and have the couple sign an acknowledgment of the encroachment, but to otherwise take no further action.  In reaching such a decision, ... more

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