Blog : What Is a Boundary Encroachment?

What Is a Boundary Encroachment?

Why Do They Cause Problems in Commercial Real Estate?

First let’s answer the question, what is a boundary encroachment?  A boundary encroachment is a physical structure that crosses a parcel boundary or property line.  There are four common types of boundary encroachments which are perimeter encroachments, such as a fence or wall around the perimeter; utility encroachments, in which a typical example of this type of encroachment includes a utility pole or sewer line; building encroachments, which are physical structures that are encroaching on the boundary; and lastly, there are access encroachments which are typically encroachments such as driveways, parking lots and other types of access.

So why are boundary encroachments a problem in commercial real estate?  There are three basic reasons why boundary encroachments are an issue in commercial real estate if there isn’t an easement, a license agreement, or some other legal right for the encroachment, which are:

Trouble insuring the parcel.  Title companies really take issue with encroachments which means they are going to either want the buyer of the property to either exclude the encroachment from coverage or the are going to want the encroachment resolved before insuring the property.

Trouble financing the parcel.  For the same reason insurers do not want to insure the property, this also leads to banks not wanting to finance the property due to liabilities such as uninsured property, land disputes and property rights including unwritten rights or so called “squatter’s” rights.  These issues can tie a property up in litigation making it hard to quickly sell the property in the case of a foreclosure.

Troubles getting permits to build on the parcel.  Local planning departments or building departments typically, will not issue new permits on a property that has an unresolved encroachment.

Therefore, if you are considering purchasing a commercial parcel of land for your business, call the professional surveyors at Stoner to discuss your project at 954-585-0997.  We will be able to guide you through what surveys you will need and assist you in making a sound financial decision for your business.

About Stoner

Since 1988, Stoner has continually provided the highest level of quality service to each and every project.  Staying true to the company mission statement of Experience, Excellence, Service and Technology: These are the watchwords that we apply to each of our clients’ projects.  Today, the company services the greater South Florida area including Broward, Miami-Dade, Palm Beach and Monroe Counties.  Allowing the team of professionals to deliver critical surveying services in a timely manner to both the private sector and the government.  For more information on Stoner please call (954) 585-0997or visit www.stonersurveyors.com.