Encroachment
Understand what encroachment means in Canadian real estate, how it affects transactions, and what steps owners can take to resolve property boundary issues.

May 22, 2025
What is an Encroachment?
An encroachment occurs when a structure or improvement extends onto a neighbouring property or public land without legal permission.
Why Encroachment Matters in Real Estate
In Canadian real estate, encroachments are common issues discovered during title searches or surveys. They can involve fences, garages, decks, or even driveways crossing into adjacent lots.
Encroachments can lead to:
- Legal disputes between neighbors
- Complications in title transfer or mortgage approval
- Municipal enforcement or orders for removal
Encroachment agreements or easements can be negotiated to resolve the issue, but lenders and buyers may require them to be addressed before closing.
Understanding encroachment helps buyers, sellers, and property owners identify and resolve boundary issues early in the transaction.
Example of Encroachment in Action
A fence built over the property line is flagged in the Certificate of Location. The seller obtains an encroachment agreement with the neighbor before closing.
Key Takeaways
- Involves structures crossing property lines.
- Can delay or block real estate closings.
- May require agreements or legal remedies.
- Found through surveys and title review.
- Important to address before sale.
Related Terms
- Property Survey
- Certificate of Location
- Easement
- Zoning
- Title Transfer













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