Selling a Las Vegas Home with Encroachments or Boundary Issues

by Ryan Rose

Your fence extends onto the neighbor's property. The neighbor's shed sits partially on your land. A tree you planted years ago now overhangs the property line. Boundary issues and encroachments are more common than most homeowners realize, and they can complicate your sale.

What Are Encroachments?

An encroachment occurs when a structure, improvement, or feature extends beyond property boundaries onto neighboring land or public easements. Common examples include:

Your Property Encroaching	Neighbor Encroaching on You
Fence over property line	Neighbor's fence on your land
Shed or structure in setback	Neighbor's structure on your property
Driveway over easement	Shared driveway issues
Pool or patio in setback	Overhanging trees or landscaping

How Encroachments Are Discovered

Boundary issues often surface during the sale process through:

Survey. Buyers may request or lenders may require a survey showing property boundaries and improvements.

Title search. Title companies review recorded documents including previous surveys. Issues flagged here can affect title insurance.

Visual inspection. Obvious encroachments may be noted during home inspections.

Neighbor disclosure. Sometimes neighbors mention boundary disputes to potential buyers.

Impact on Your Sale

Encroachments affect sales in several ways:

Title insurance exceptions. The title company may exclude coverage for the encroachment, making buyers nervous.

Lender concerns. Some lenders will not approve loans on properties with unresolved encroachments.

Buyer objections. Buyers may request resolution as part of their inspection requests.

Price negotiations. Unresolved issues may result in lower offers or credit requests.

Resolution Options

How you resolve an encroachment depends on severity and circumstances:

Remove the encroachment. If your fence, shed, or structure encroaches, removing or relocating it eliminates the issue.

Obtain an encroachment agreement. A written agreement between you and the neighbor acknowledging the encroachment and granting permission. This gets recorded and runs with the land.

Purchase the encroached land. Buy the strip of neighbor's property your improvement sits on, adjusting the boundary.

Obtain a lot line adjustment. Work with the neighbor to officially adjust property boundaries.

Address through easement. Create a formal easement allowing the encroachment to remain.

When Neighbors Encroach on You

If the neighbor's improvement encroaches on your property:

Disclose it. You must disclose known encroachments to buyers.

Document the situation. Have a survey showing the encroachment.

Consider resolution. An encroachment agreement from the neighbor can satisfy buyers and title companies.

Price accordingly. If unresolved, the issue may affect your sale price.

Working with Neighbors

Many encroachment resolutions require neighbor cooperation:

Approach diplomatically. Most encroachments were not intentional. A friendly conversation often leads to cooperation.

Explain the situation. Let them know you are selling and need documentation for the transaction.

Offer to pay costs. Covering survey or legal costs may encourage cooperation.

Get it in writing. Any agreement should be formal, written, and recorded.

Survey Considerations

If you suspect boundary issues or have made improvements near property lines:

Get a survey before listing. Knowing about issues early allows time for resolution.

Survey costs. In Las Vegas, surveys typically run $400-800 depending on property size and complexity.

Share with buyers. Providing a recent survey can satisfy buyer and lender requirements.

Disclosure Requirements

Nevada law requires disclosure of known material facts. If you know about encroachments:

Disclose them. Include in your seller's disclosure.

Provide documentation. Share surveys, agreements, or correspondence with neighbors.

Do not hide issues. Concealing known encroachments creates legal liability.

Where to Start

If you are selling a Las Vegas home and suspect boundary issues or encroachments, addressing them early prevents closing delays. I can help you evaluate the situation and develop a resolution strategy.

Ready to discuss your property? Request a free home evaluation here or reach out directly to talk through your options.

Frequently Asked Questions About Selling Las Vegas Homes with Encroachments and Boundary Disputes

Q1: What is the difference between an encroachment and an easement?

An encroachment is an unauthorized intrusion of a structure or improvement onto another's property, while an easement is a legal right to use someone else's land for a specific purpose. Encroachments are typically unintentional and can become legal issues during a sale, whereas easements are formally documented and run with the property title.

Q2: Do I need to get a survey before selling my Las Vegas home?

While not legally required, getting a survey before listing is highly recommended if you've made improvements near property lines or suspect boundary issues. A survey typically costs $400-800 in Las Vegas and allows you to identify and resolve encroachments before they delay your closing or affect negotiations.

Q3: Can I sell my home if there's an encroachment issue?

Yes, you can sell a home with encroachment issues, but you must disclose them to potential buyers. Unresolved encroachments may limit your buyer pool, affect financing options, result in title insurance exceptions, or lead to lower offers. Resolving the issue before listing typically results in a smoother transaction.

Q4: What is an encroachment agreement and how does it work?

An encroachment agreement is a written document between neighboring property owners that acknowledges an existing encroachment and grants permission for it to remain. The agreement is recorded with the county and transfers with the property to future owners, providing legal protection and satisfying title insurance requirements.

Q5: What happens if my neighbor refuses to cooperate on resolving an encroachment?

If a neighbor won't cooperate, you have several options: remove the encroaching structure if it's yours, sell the property with full disclosure of the issue (which may affect price), offer financial incentives for cooperation, or consult with a real estate attorney about legal remedies. Many encroachment disputes can be resolved through diplomatic discussion and offering to cover associated costs.

Q6: Will title insurance cover encroachment issues?

Standard title insurance policies typically exclude coverage for encroachments revealed by a survey or physical inspection. If an encroachment is discovered during the title search, the title company will usually list it as an exception to coverage, meaning they won't insure against losses related to that specific issue. This is why resolving encroachments before closing is important.

Q7: How much does it cost to resolve an encroachment in Las Vegas?

Resolution costs vary widely depending on the method chosen. A survey costs $400-800, an encroachment agreement may require $500-1,500 in legal fees, removing and relocating a fence or structure could cost $1,000-5,000+, and purchasing encroached land or completing a lot line adjustment involves surveying, legal fees, and recording costs that can total $2,000-5,000 or more.

Q8: Can buyers walk away from a deal if they discover an encroachment?

Yes, if encroachments are discovered during the inspection period or prevent the buyer from obtaining financing or title insurance, buyers typically have the right to cancel the contract and receive their earnest money back. Even if disclosed upfront, unresolved encroachments may cause lenders to deny loan approval, giving buyers an exit option.

Q9: Are setback violations the same as encroachments?

Not exactly. A setback violation occurs when a structure is built too close to property lines according to local zoning regulations, but still entirely on your own property. An encroachment means a structure actually crosses onto neighboring property. Both can cause issues during a sale, but encroachments typically require neighbor involvement to resolve, while setback violations may require city permits or variances.

Q10: What should I disclose about encroachments on the seller's disclosure form?

You must disclose any known encroachments, whether your improvements encroach on neighboring property or your neighbor's improvements encroach on yours. Include details about what is encroaching, where it's located, any surveys or documentation you have, and any agreements or disputes with neighbors. Failure to disclose known encroachments can result in legal liability after closing.

Q11: How long does it take to resolve an encroachment issue?

Resolution timelines vary significantly. A simple encroachment agreement with a cooperative neighbor might be completed in 2-4 weeks. Removing and relocating a structure could take 4-8 weeks depending on contractor availability. Lot line adjustments or purchasing strips of land can take 2-3 months due to surveying, legal documentation, and county recording requirements. This is why addressing issues before listing is advisable.

Q12: Can I sell my Las Vegas home "as-is" with encroachment issues?

Yes, you can sell as-is with full disclosure of encroachments, but this approach typically attracts investors or cash buyers rather than traditional financed buyers. Conventional lenders often won't approve loans on properties with unresolved encroachments, and title companies may refuse to issue clear title insurance. Expect lower offers to compensate buyers for assuming the risk and resolution costs.