Major Encroachment

A major encroachment occurs when a significant portion of a structure, improvement, or use extends onto a neighboring property or substantially violates a legal boundary, interfering with ownership rights, access, or reasonable use of the affected land. Unlike minor encroachments, major encroachments typically have material legal, financial, or functional consequences and often require formal resolution.

Major encroachments are more likely to affect property value, title clarity, financing, and the ability to sell or develop a property.

How Major Encroachments Occur

Major encroachments can result from planning errors, construction mistakes, or long-standing assumptions about boundary lines. Common causes include:

• Building without a current survey

• Misinterpretation of plats or legal descriptions

• Construction that disregards setback requirements

• Expansion or additions that cross property lines

• Long-term use that extends well beyond boundaries

In some cases, the encroachment may have existed for years before being discovered, especially in older neighborhoods or properties with irregular lot lines.

Examples of Major Encroachments

Major encroachments typically involve substantial or permanent structures. Examples include:

• A house, garage, or addition built partially on a neighboring lot

• A driveway or parking area that significantly occupies another property

• A retaining wall or pool encroaching deep into adjacent land

• A building constructed within prohibited setback areas that blocks access or light

• Structural elements that prevent the neighbor from using or developing their property

These situations go beyond inconvenience and can materially impair property rights.

Major Encroachment vs. Minor Encroachment

The difference between major and minor encroachments lies in scale and impact. Minor encroachments are small and often manageable with agreements. Major encroachments materially affect use, value, or legal rights and are less likely to be resolved informally.

Courts, lenders, and title insurers treat major encroachments with greater scrutiny because they present higher risk and fewer simple remedies.

Legal Implications of a Major Encroachment

A major encroachment can give rise to serious legal issues. The affected property owner may demand removal, seek damages, or pursue injunctive relief through the courts.

Depending on state law, a court may order the encroaching structure to be removed or modified, even if removal is costly. In other cases, courts may weigh hardship, intent, and fairness when determining remedies.

Because of these risks, major encroachments often require legal counsel to resolve.

Impact on Property Sales and Financing

Major encroachments can significantly complicate real estate transactions. Buyers may be unwilling to proceed, lenders may refuse financing, and title insurers may decline coverage until the issue is resolved.

If a major encroachment is discovered during escrow, closing may be delayed or canceled. Disclosure is critical; failure to disclose a known encroachment can expose sellers to legal liability.

Title and Insurance Considerations

Major encroachments often create a cloud on title, meaning ownership is unclear or disputed. Title insurance policies may exclude coverage for known encroachments unless specific endorsements are issued.

Resolving the encroachment may be necessary before a clear title can be delivered, especially when financing is involved.

Common Ways Major Encroachments Are Addressed

Resolving a major encroachment usually requires formal action. Possible solutions include:

• Removal or modification of the encroaching structure

• Boundary line agreements redefining property lines

• Permanent easements, if acceptable to all parties

• Property line adjustments or lot line revisions

• Court-ordered resolutions, including damages or injunctions

Not all solutions are available in every situation, and some require government approval.

Risks of Ignoring a Major Encroachment

Ignoring a major encroachment can increase legal exposure over time. Property ownership changes, redevelopment, or disputes can bring the issue to the forefront with greater urgency.

While adverse possession claims are sometimes raised, they are highly fact-specific and difficult to establish. Relying on inaction rather than resolution is risky.

Common Misunderstandings About Major Encroachments

A common misconception is that long-standing encroachments are automatically legal. Longevity alone does not eliminate encroachment issues.

Another misunderstanding is assuming compensation can always replace removal. In many cases, affected owners retain the right to demand restoration of their property.

Why Major Encroachments Matter

Major encroachments strike at the core of property ownership: defined boundaries and exclusive use. They can affect marketability, financing, and long-term plans in ways that minor issues do not.

For homeowners, understanding what constitutes a major encroachment underscores the importance of surveys, permits, and clear documentation before building or buying.

In real estate, a major encroachment is a high-impact boundary issue that demands careful attention and formal resolution. Addressing it proactively protects property rights and prevents small mistakes from becoming costly disputes.

Understanding terms like this is one piece of a much larger homeownership picture. Keeping important records, loan documents, and property information organized can make every stage of buying, owning, or selling a house less stressful and more transparent. Platforms like DomiDocs® help homeowners securely store and manage these critical documents in one place, while HomeLock™ adds an extra layer of awareness around changes that may affect property ownership. Together, they support informed decisions and long-term peace of mind throughout the homeownership journey. For broader context on real estate–related scams and financial crime trends, homeowners can also reference guidance and public resources from the Federal Bureau of Investigation (FBI).