Land Encroachment

Land Encroachment refers to illegally occupying or using land that another party owns by cultivating crops on it, using it as a dumping ground, or constructing a building on it, among other uses. The financial impact of such acts can result in fines, penalties, legal fees, opportunity costs, and revenue loss, among other losses.

Such occupation may be intentional, where one party occupies another’s land due to greed or malice. It can be unintentional, where the piece of land has not been divided clearly, leading to the unjustified use of land. In most land encroachment cases, users get access to the resources on and beneath the land’s surface.

• Land encroachment means using or occupying another party’s property or building structures on such land without holding ownership rights to said property.
• It involves trespassing, extending, or entering into adjacent property without permission. It may be intentional or unintentional.
• Negotiation, settlement, and mediation are some ways to achieve results amicably. Legal action may be initiated when a matter is complex, severe, and difficult to resolve.
• Land grabbing, which differs from encroachment, involves deliberately and forcefully taking over an entity’s land to use it for specific gains without compensating the aggrieved party for it or legally buying or renting it from the said party.

Land encroachment complaints may result in legal and/or financial issues. Encroachment involves trespassing and using land without permission. It is intentional when property owners intend to intrude or enter another party’s property without permission. It gives them illegal access to such property. Such trespassers usually take advantage of land occupied in this manner for personal gain. In this context, personal gain indicates using the land for residential, commercial, or agricultural purposes and making money out of it.

Encroachment can be major or minor. Depending on how much land is used, a case can even be classified as a criminal offense. A tree with overhanging branches that extend into a neighbor’s or another party’s boundary will be seen as a minor encroachment, which can be easily resolved. However, if a building is constructed on an entity’s property, it is a major encroachment because resolving this kind of dispute will not only be time-consuming but also expensive. If an encroachment causes significant damage or blocks another property, legal action might become necessary.

Though legal action is generally the recourse in cases of major encroachment, arbitration, mediation, and negotiation are useful resolution methods in cases where situations are less complex. In cases where boundaries, contracts, or agreements are unclear and where disputes are serious, it is always advisable to seek legal advice. It must be noted that unintentional encroachment can be addressed amicably through discussion without resorting to severe action.

Another type of encroachment case commonly seen is when someone uses vacant land for personal gain or as a dumping ground since it is easy to occupy such land without permission. Other cases involve missing ownership details, which can result in encroachment by one or more parties. In cases of a serious nature, historical land records play a crucial role, especially when legal action is sought or initiated.

Another aspect that demands our attention is taxation. Depending on the duration of encroachment and how the land under question was used, taxes may be leviable/payable. Taxation further complicates the matter, making matters challenging, hostile, and expensive.

Land encroachment by neighbors may occur due to various reasons. Depending on where a party or property is located and what land ownership rules apply to entities in that region, this list may change. Land encroachment laws in the US typically vary by state. Only local rules, statutes, laws, and building codes can correctly guide these decisions. Some types are:

• Trespassing or entering a party’s or neighbor's property or premises without permission constitutes encroachment.
• A physical form of encroachment occurs when a party builds a wall or fence that extends into another party’s property.
• If building extensions extend to sidewalks, making passage difficult, it may become an encroachment.
• A minor form of encroachment occurs when a tree branch extends into a neighbor's property.
• If one undertakes government projects without informing an owner/s about said construction, it results in a major case of encroachment. Such cases usually trigger legal action. 

Land encroachment can take several forms. Let us study a few examples in this section.

Example #1

Suppose Lucy, a resident of Texas, owns a piece of land just behind her house. She uses this land as an extension of her backyard, where she grows flowers. As Lucy uses her land for gardening, she spends a considerable amount of time tending to it. Avery, her neighbor, is a farmer. He builds a shed to keep his agricultural equipment and tools, and the door of his shed blocks Lucy’s path to the garden.

Before speaking with Avery, Lucy approaches her cousin, Linda, who is a lawyer specializing in real estate and property matters. Linda gives her the following advice:

• Linda tells Lucy that communicating with Avery to check if he is willing to amicably resolve this situation is the best approach since it does not require resource expenditure in any form.
• She further tells Lucy that if such communication fails, she can approach a third-party mediator to resolve this problem.
• Linda also gives her the option to negotiate a better circumstance by offering Avery the chance to move the shed door to another location, changing the shed’s entry point.
• Linda then tells her that if all these methods fail, she can initiate legal action against Avery based on the laws applicable to encroachment matters in Texas.

In this way, Lucy can handle the encroachment problem and arrive at a resolution that best suits her situation.

Example #2

Assume that Crimson Magnolia Corporation constructed a warehouse on a vacant property next to one of its factory units. Atelier Blue & Co. has a manufacturing plant next to Crimson Magnolia’s factory. Atelier Blue alleged that Crimson Magnolia extended its boundary illegally during construction and took a portion of the vast land Atelier Blue held beside its manufacturing plant. Thus, a dispute ensued. Both companies appointed legal counsel.

As the next step, Atelier Blue & Co’s attorney, Laura, did the following:

• She gathered evidence comprising land records, ownership documents, property deeds, etc., to support her client’s claims.
• Laura also collected and organized building plans, permits, and completion certificates. Most importantly, she gathered boundary surveys.

Laura met with Crimson Magnolia Corporation’s management and legal counsel to propose probable solutions after discussing the various options Atelier Blue & Co had with management. She presented the following to both parties during the meeting:

• Laura explained that the legal repercussions of such disputes may lead to long-drawn court battles and heavy monetary outflows. Hence, she recommended a settlement on mutually agreeable terms.
• She asked Crimson Magnolia to compensate Atelier Blue, given the papers proved the company’s land ownership.
• Laura suggested that Crimson Magnolia could consider paying Atelier Blue a specific amount per month and continue using the said piece of land.
• Next, she recommended that the two parties agree to the easement.

Both parties agreed to enter into an easement agreement through which Crimson Magnolia Corporation was granted legal access to the disputed property. Thus, Laura saved her client’s resources by dealing with an otherwise complex land encroachment case.

Example 3

A January 2023 article talks about preserving military lands from civilian encroachment to offer military personnel enough space for their training endeavors. As acquiring combat techniques is crucial to the skills of military men and women, it is imperative to have adequate land for conducting such training. However, in the past few decades, military training centers have steadily come in close contact with civilian real estate development. 

Experts believe it is important to contain such encroachment in nearby areas to facilitate training operations and protect civilians from the dangers arising from powerful and loud training equipment.

Addressing issues arising from land encroachment can be challenging or simple based on the case in question. Let us study some ways to deal with it.

• Initiate a conversation with the neighbor (or encroacher) to resolve the matter through negotiation.
• Enter into a talk for compensation for the loss incurred. If the extension proves beneficial, negotiation can take place.
• An aggrieved party can sell the property for a settlement if there is major encroachment.
• Renting out property to an encroacher can settle the matter.
• Legal action is usually the last resort when every other reconciliation, mediation, or negotiation method fails in land encroachment cases.

The following are some legal ways to deal with land encroachment.

#1 - Permanent or Temporary Injunction

It refers to a court order that bars the encroacher from using the property permanently or for a specific period. For this, an aggrieved party must file a lawsuit and present the required evidence to prove encroachment. This is an effective method, but it is quite time-consuming and expensive.

#2 - Ex-parte Injunction

This refers to a temporary injunction in the absence of the other party (or encroacher). This happens when the party does not respond to the complaint and presents a reply in court. While this may seem like a win, an ex-parte injunction means that the other party still has a chance to present its case after the ex-parte injunction period concludes.

#3 - Claim Damages

An aggrieved party can ask for compensation to cover the financial losses triggered by encroachment. This can include loss of rent, loss of business/revenue, costs incurred for repair or demolition, etc.

In the table below, we discuss the differences between land grabbing and encroachment.

This article has been a guide to Land Encroachment & its meaning. We explain how to deal with it along with its types, examples, and comparison with land grabbing. You may also find some useful articles here -

• Title Search
• Disgorgement
• Adverse Possession