An encroachment happens when something on one property crosses over onto a neighboring property without permission. That “something” is physical and visible, like a fence, a shed, a driveway, or even part of a house. Sometimes it’s obvious (like a fence clearly in the wrong spot), but other times it’s subtle—like a retaining wall that’s just a few inches over the lot line.
Encroachments are usually discovered during a survey or when reviewing title documents. And while they might sound like a big deal, not all encroachments are deal-breakers. In fact, many exist for years without causing any issues at all.
That said, they can become a problem—especially when a property changes hands. A buyer might not be thrilled to learn that part of what they thought they were buying actually belongs (legally) to the neighbour. Or vice versa.
So what happens next?
Title insurance often covers minor encroachments, which is one reason it’s so common in Canadian real estate transactions. The parties may agree to a written permission, allowing the encroachment to remain.
In some cases, the issue may be have to be resolved by moving or removing the structure—though that’s obviously the least popular option for at least one party.
The key takeaway? Encroachments are not something you see every day, but they are more common than people realize, and they’re usually manageable with the right guidance. Like many things in real estate, it’s not about avoiding every possible issue—it’s about understanding what you’re dealing with and making informed decisions.
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