If you`re in the early stages of buying or selling a piece of property, you may come across a term called an “encroachment agreement.” But what exactly is an encroachment agreement?
An encroachment agreement is a legal document that allows one property owner to continue using part of their neighbor`s property. This type of agreement comes into play when someone has built a structure, such as a fence or shed, that sits partially on their neighbor`s land. In order to avoid any potential disputes or legal actions, an encroachment agreement can be drafted and signed by both parties, outlining the terms and conditions of the use of the encroached-upon property.
An encroachment agreement typically includes the following elements:
1. Location of the encroached area: The agreement should clearly identify the area that is encroached upon by the structure or property in question.
2. Timeframe of the agreement: An encroachment agreement is usually valid for a specific period of time, such as five or ten years. The agreement can be renewed or renegotiated when the term expires.
3. Payment or compensation: The agreement may require the encroaching party to pay a fee or provide compensation to the other party for the use of their property. The amount can vary depending on the specific circumstances of the encroachment.
4. Responsibilities of both parties: The agreement should outline the responsibilities of both parties, such as maintenance and repairs of the encroached area.
5. Remedies for breach: The agreement should include provisions for what happens if either party breaches the terms of the agreement.
An encroachment agreement can help prevent future disputes between neighbors and provide legal protection for both parties. It is recommended to consult with a real estate attorney to draft an agreement that fits your specific situation.
In conclusion, an encroachment agreement is a legal document that allows one property owner to use a portion of their neighbor`s property. The agreement should include several elements that outline the terms and conditions of the agreement, including location, timeframe, payment or compensation, responsibilities of both parties, and remedies for breach. If you are considering an encroachment agreement, it is important to consult with a real estate attorney to ensure your rights are protected.