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An encroachment is a physical structure or improvement — a fence, shed, or roofline, for example — that extends over a property line onto a neighbouring lot or a public right-of-way, usually discovered through a survey or real property report.
An encroachment is different from an easement: an easement is an authorized, registered right, while an encroachment is an unresolved boundary problem — nobody granted permission for the fence or shed to sit where it does. It's typically flagged when a current survey or real property report is ordered as part of the purchase.
Lenders generally want an encroachment addressed before funding, especially if it affects a municipal setback or right-of-way — whether through an encroachment agreement with the neighbour, removal of the structure, or a title insurance endorsement covering the issue. Older, urban properties with informal boundary histories are the most common source of encroachment issues brokers run into.
Flagged by survey or RPR: provinces such as Alberta and Saskatchewan commonly use a real property report to identify encroachments before closing; other provinces rely more on a current survey or title insurance.
Different from an easement: an encroachment is an unauthorized physical intrusion, while an easement is a legally registered right to use part of the land.
Lenders often want resolution before funding: a material encroachment can hold up subject removal until it's resolved through an agreement, removal, or an acceptable title insurance endorsement.
More common on older, urban lots: properties with informal or older boundary histories are more likely to carry an undisclosed encroachment than newer subdivisions surveyed to current standards.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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