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Encroachments in a Contract for Sale: What You Need to Know

Matthew Woolley

When buying or selling property, one of the most overlooked yet critical issues is encroachments. An encroachment occurs when a structure (e.g., a fence, shed, or driveway) crosses over a property boundary, often leading to disputes between neighbors. At Home+Co. Conveyancing, a division of Matthew James Isaac Lawyers, we’ve seen how encroachments can derail property transactions. Here’s what you need to know and our top tips to avoid costly surprises.



What Are Encroachments?


Encroachments are unauthorized intrusions onto a neighboring property. Common examples include:

  • Fences built over the boundary line.

  • Garages or sheds extending onto another property.

  • Driveways or pathways crossing into a neighbor’s land.


These issues often go unnoticed until a property survey is conducted, potentially causing delays, disputes, or even legal action.


Why Are Encroachments a Problem?


  1. Legal Disputes: Encroachments can lead to boundary disputes, requiring mediation or court intervention.

  2. Delayed Settlements: Resolving encroachments can delay settlement, especially if legal action is needed.

  3. Reduced Property Value: Buyers may be hesitant to purchase a property with unresolved boundary issues.

  4. Costly Fixes: Removing or relocating encroaching structures can be expensive.


Top Tips to Avoid Encroachment Issues


  1. Conduct a Property Survey

    • Before purchasing, commission a boundary survey to identify any encroachments. This ensures you know exactly where the property lines lie.

  2. Review the Contract of Sale

    • Ensure the contract includes a clause addressing encroachments. If an issue is identified, negotiate terms for resolution before signing.

  3. Check Council Records

    • Review council plans and zoning regulations to confirm property boundaries and approved structures.

  4. Seek Legal Advice

    • Engage a conveyancer or solicitor to review the contract and advise on any risks.


What to Do If You Discover an Encroachment


  • For Buyers: Negotiate with the seller to resolve the issue before settlement. This may involve removing the structure or formalising an agreement with the neighbor.

  • For Sellers: Address encroachments proactively to avoid delays or reduced offers. Consider obtaining a boundary survey before listing the property.


Dr Matt Woolley I Principal Lawyer I MATTHEW JAMES ISAAC LAWYERS




 
 
 

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