No encroachments: Overview, definition, and example
What is no encroachments?
"No encroachments" refers to a contractual assurance that a property, structure, or improvement does not extend beyond its legal boundaries or onto another party’s land. This term is commonly used in real estate transactions, construction agreements, and property leases to confirm that all developments remain within legally permitted areas.
For example, if a business buys commercial property, the seller may provide a “no encroachments” warranty, confirming that no part of the building extends onto a neighboring lot or public land. Similarly, a landlord might include a clause in a lease stating that tenants cannot construct additions that encroach on adjacent properties.
Why is no encroachments important?
Encroachments can lead to legal disputes, fines, or forced removal of structures, resulting in significant costs and disruptions. A no encroachments clause protects property owners and buyers by ensuring that buildings, fences, or other structures comply with legal property lines.
For businesses and investors, verifying that a property is free from encroachments can help avoid boundary disputes with neighbors, zoning violations, or issues when selling or developing the land.
Understanding no encroachments through an example
Imagine a company purchasing land to build a warehouse. Before completing the purchase, the company requests a property survey to confirm that no part of a neighboring building extends onto their lot. If the survey finds an encroachment—such as a fence or driveway partially crossing the property line—the company may require the seller to resolve the issue before closing the deal.
In another scenario, a homeowner builds an extension on their house, unknowingly extending a portion of the structure onto their neighbor’s land. If the neighbor disputes the encroachment, the homeowner may be required to modify or remove the structure, which can be costly and time-consuming.
An example of a no encroachments clause
Here’s how a no encroachments clause might appear in a contract:
“The Seller warrants that there are no encroachments by any structure, improvement, or fixture onto any adjacent property or public right-of-way. If any encroachment is discovered, the Seller shall be responsible for remedying the issue prior to closing.”
Conclusion
A no encroachments clause ensures that properties and structures remain within their legal boundaries, preventing costly disputes and legal issues. Whether in real estate transactions, construction agreements, or leases, this provision helps safeguard property owners, buyers, and tenants from encroachment-related risks.By including a no encroachments clause in contracts, businesses and individuals can protect their investments, maintain compliance with zoning laws, and avoid potential boundary conflicts.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.