What Is an Encroachment in Commercial Real Estate?
"Texas, often referred to as the Lone Star State, is a thriving hub for economic growth and innovation, making it an attractive destination for commercial real estate investment." - Chris Evans
What Is an Encroachment and Why It Matters in Commercial Real Estate
Encroachments are one of the most common — and often overlooked — issues in commercial real estate.
They don’t always look like a big deal at first, but they can create real complications during ownership or development.
What Is an Encroachment?
An encroachment occurs when a structure or improvement extends beyond its legal boundary.
This can include:
A fence crossing onto a neighboring property
A building built too close to a property line
Parking areas extending beyond lot limits
Improvements placed within an easement
Encroachments can be minor — or they can significantly impact property use.
Why Encroachments Matter
Encroachments can affect:
Legal ownership boundaries
Development plans
Property value
Financing and title insurance
In some cases, they may need to be resolved before a transaction can close.
Not All Encroachments Are Visible
Some encroachments are easy to spot.
Others are not obvious without proper measurement.
A survey helps identify:
Boundary overlaps
Improvements near property lines
Conflicts with easements
This ensures buyers understand the situation before committing.
Resolving Encroachments Early Is Key
When identified early, encroachments can often be addressed through:
Agreements between property owners
Adjustments to property lines
Title solutions
Design changes
Waiting until after closing limits options.
Bottom Line
Encroachments may seem small, but they can create major challenges in commercial real estate if left unaddressed.
At South Texas Surveying, we help Houston commercial buyers identify encroachments early so they can make informed decisions.
