Encroachment

AAA

DEFINITION of 'Encroachment'

A situation in real estate where a property owner violates the property rights of his neighbor by building something on the neighbor's land or by allowing something to hang over onto the neighbor's property. Encroachment can be a problem along property lines when a property owner is not aware of his property boundaries or intentionally chooses to violate his neighbor's boundaries.
This is also known as structural encroachment.

INVESTOPEDIA EXPLAINS 'Encroachment'

Encroachment problems are sometimes resolved with a simple conversation, but other times these problems must be taken to court. Because of this, potential homebuyers are advised to avoid properties with encroachment issues. Property owners wishing to make changes near their property lines may want to talk to their neighbors and/or have a land survey done to make sure the work falls within their own property's boundaries.


An easement is similar to an encroachment in that the use of one party's property by another party. However, easements are agreed upon by both parties and compensation is often involved, whereas encroachment is unwanted by one party.

RELATED TERMS
  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Right Of Egress

    The legal right to exit or leave a property. Right of egress ...
  3. Easement

    The right of one party to use the property of another party. ...
  4. Lien

    The legal right of a creditor to sell the collateral property ...
  5. Personal Property

    A type of property which, in its most general definition, can ...
  6. Encumbrance

    A claim against a property by another party. Encumbrance usually ...
RELATED FAQS
  1. How much of the global economy is comprised of the real estate sector?

    The commercial and residential real estate industry generated an estimated $3 trillion in 2014, with some 35% of sector revenue ... Read Full Answer >>
  2. What is the process for a building owner depreciating leasehold improvements in a ...

    As long as the building owner is the person or entity that provides leasehold improvements, then the owner can depreciate ... Read Full Answer >>
  3. How can I invest in tax liens?

    An individual can invest in tax liens by identifying available liens and then participating in auctions where property tax ... Read Full Answer >>
  4. Why should value investors consider the insurance sector?

    Insurance companies receive steady cash flows for years with irregular payouts. Following these payouts, insurance companies ... Read Full Answer >>
  5. What is the difference between a lien and an encumbrance?

    A lien represents a monetary claim levied against property to secure payment of an obligation of the property owner, while ... Read Full Answer >>
  6. Why was the accountant responsible for auditing ZZZZ Best unable to determine that ...

    ZZZZ Best was a company which was started by Barry Jay Minkow as a front for a Ponzi scheme that went undetected for several ... Read Full Answer >>
Related Articles
  1. Retirement

    Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.
  2. Home & Auto

    7 Things To Consider Before Selling Your Own Home

    A "for sale" sign won't sell your house. Find out what it takes and whether you can do it all yourself.
  3. Home & Auto

    Top 8 House-Hunting Mistakes

    These common mistakes occur when you allow your emotions to take over.
  4. Home & Auto

    Do-It-Yourself Projects To Boost Home Value

    These simple projects can add value to your property without taking too much out of your wallet.
  5. Home & Auto

    Encumbrances And Nonpossessory Interests In Real Property

    Learn about nonpossessory interests and the various forms of encumbrances.
  6. Home & Auto

    Top 4 Things That Determine A Home's Value

    Your house depreciates over time, while the land beneath it is likely to do the opposite.
  7. Economics

    What is a Leasehold Improvement?

    A leasehold improvement is an alteration made to a rented space that customizes the space for the tenant.
  8. Home & Auto

    Buying a Home? The Best Places Share This Feature

    The most lucrative areas to invest in a home are cities where job growth is robust.
  9. Personal Finance

    Commercial Real Estate: How it Works

    The ins and outs of what commercial real estate companies do.
  10. Insurance

    Explaining Insurance

    Insurance is a form of contract between an individual and an insurance company that spreads risk in exchange for premium payments.

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!