Encroaching Structures

Title Insurance may assist you in resolving disputes arising from encroachment. For example, if a structure, such as a driveway, fence, wall or building, has been mistakenly built on your property by a neighbour, Title Insurance may cover the costs and legal steps needed to resolve the issue.

Protect your property from the risk of boundary encroachments

Buying or owning property is often one of the biggest financial and personal investments you’ll make. Whether you're planning your dream home, expanding a portfolio or securing a place for your business, protecting that investment from unexpected risks is essential. One such risk is a boundary encroachment dispute, which can be costly, complex and time-consuming to resolve.

What is encroachment? This occurs when a structure goes past the legal boundaries of the property, encroaching onto someone else’s property. Some common examples of encroachments are:

  • Fences – built beyond the boundary line, often due to misplacement or outdated surveys.
  • Sheds and garages – permanent structures constructed over the property line.
  • Driveways and paved areas – extending onto a neighbour’s land or a public reserve.
  • Roof overhangs or gutters – crossing into an adjoining property.
  • Retaining walls – installed in a way that encroaches onto neighbouring lots.

These issues are often only discovered after settlement, and by then, the consequences can include forced alterations, legal action, or loss of usable land.

Title Insurance for Property buyers provides a simple, one-off solution that can:

  • Cover legal and rectification costs related to encroaching structures.
  • Help resolve disputes with neighbours.
  • Protect against some adverse circumstances that may not be discovered during purchase.

Title Insurance may make all the difference. Learn more about Title Insurance today.

When do property encroachments happen?

Encroachments can happen due to:

  • Mistakes by a previous owner or neighbour, such as structures built without proper surveys.
  • Boundaries that are not clear or marked incorrectly, especially in older subdivisions.
  • Verbal agreements between previous owners and neighbours that were never written down or recorded on the title. 

It doesn’t matter if it was an honest mistake. Once an encroachment is discovered, the consequences can be significant. You may face legal proceedings to resolve ownership or boundary rights; or be forced to remove or alter the encroaching structure; or you may face a lengthy dispute to resolve an encroachment onto your property. These processes can be both expensive and emotionally draining.

That’s where Title Insurance comes in. It can help cover these risks and offer support in resolving boundary disputes.

Does Title Insurance cover encroachments?

Title Insurance helps protect property owners from unexpected legal and financial issues associated with disputes over the boundaries of their land. Your Title Insurance policy may cover the cost of:

  • Legal fees to defend your ownership rights if they’re challenged.
  • Legal expenses and settlement costs related to resolving encroachment disputes.
  • Court proceedings if the matter escalates to litigation.
  • Retrospective land value assessments, compensating for any loss in value due to a boundary issue.

What is not covered under Title Insurance?

While Title Insurance offers broad protection, there are some situations where coverage does not apply, including:

  • Encroachments you create after the policy has commenced, for example, if you build over your neighbour’s land.
  • Properties larger than 50 acres, which are outside the scope of standard Title Insurance policies.
  • Boundary walls or fences built by others after your policy start date, as these changes are not considered part of the original title conditions.

Additionally, some costs may not be covered depending on First Title’s assessment of your individual case. It’s important to review your Title Insurance policy and speak with a representative to understand the full scope of your coverage.

Find detailed information about First Title’s policies and coverage plan in our Important Information and Policy Wording documents. Caps and exclusions apply.

See how First Title has helped our policyholders

Survey Reveals Multiple Encroachments
Our policyholder undertook a survey in preparation to subdivide their property. The survey revealed several encroachments on three sides of the land.
Total cost of claim: $51,000

Be assured your property is in good hands with First Title

At First Title, we understand how stressful and complicated a boundary encroachment dispute can be, and we're here to help at every step. 

Our Title Insurance can cover the legal costs and financial impact of encroaching structures, giving you confidence that your investment is protected. We don’t just offer cover; we can provide peace of mind.

For a quote, to ask a question or lodge a claim, contact us today.