Selling a Winnipeg Home With an Encroachment Issue

An encroachment occurs when a structure on your property — or your neighbour's property — crosses the legal property line. In Winnipeg, common encroachments include fences that are not on the surveyed boundary, garages or sheds that extend over the property line, eavestroughs that overhang onto neighbouring land, and driveways that encroach on a neighbouring lot. While these encroachments may have existed for decades without causing problems, they become a significant issue when you try to sell your home.

Encroachments are typically discovered when a Real Property Report (RPR) is prepared as part of the sale process. An RPR is a legal survey document prepared by a Manitoba Land Surveyor that shows the boundaries of your property and the location of all structures relative to those boundaries. When the RPR reveals that something crosses a property line, it creates a title issue that can derail a traditional sale.

For a comprehensive overview of problem property sales, see: How to Sell a House in Any Condition in Winnipeg.

How Encroachments Affect Traditional Sales

In a traditional MLS sale, the buyer's lawyer reviews the RPR and title documents carefully. If an encroachment is identified, the lawyer will advise the buyer that there is a title deficiency. Most purchase agreements in Manitoba include a condition that the seller must provide a satisfactory RPR or resolve any issues identified on the RPR. This gives the buyer the right to walk away if the encroachment cannot be resolved.

The <a href="https://www.gov.mb.ca/cca/ltb/index.html" target="_blank" rel="noopener noreferrer">Manitoba Land Titles Office</a> maintains the official property records, and any encroachment that is flagged on a title search or RPR must typically be resolved before a clean title transfer can occur. Resolving encroachments can be complex, expensive, and time-consuming, which is why they are such a problem for traditional sales.

Common Encroachment Scenarios in Winnipeg

In older Winnipeg neighbourhoods like River Heights, Crescentwood, Norwood, and Fort Rouge, encroachments are especially common because lot lines were sometimes surveyed less precisely, and structures were built with less attention to exact boundaries. Homes built in the early 1900s may have encroachments that have existed for over a century.

Resolving Encroachments: Time-Consuming and Expensive

Resolving an encroachment typically involves one of several approaches: removing the encroaching structure, obtaining an encroachment agreement from the affected neighbour, or applying for an easement. Removing a garage or shed is expensive and may not be practical. An encroachment agreement requires the cooperation of your neighbour, who may refuse or demand compensation. Obtaining an easement involves legal proceedings. Each option takes time and money — often $2,000 to $10,000 or more in legal and surveying fees, plus the cost of any physical work.

If the encroachment is on your neighbour's structure crossing onto your land, the situation is even more complicated because you cannot simply remove their structure. You may need to negotiate an agreement with a neighbour who has no motivation to cooperate since the encroachment benefits them.

Cash Buyers and Encroachment Issues

Cash home buyers like SellMyHomeCash.ca can purchase properties with encroachment issues because we are not subject to the same title requirements that mortgage lenders impose. We assess the encroachment, understand the potential costs and complications of resolving it, and factor those into our offer. After purchasing the property, we handle the resolution — whether that means negotiating with the neighbour, obtaining an encroachment agreement, or modifying the structure.

This ability to move forward despite title complications is one of the most significant advantages of a cash sale. While a traditional buyer and their lender would require the issue to be resolved before closing, we can close with the encroachment in place and deal with it afterward. Call SellMyHomeCash.ca at (204) 800-6640 to discuss your encroachment situation.

Learn about how cash offers work: How Cash Home Buying Works in Winnipeg. You may also want to read about closing costs when selling in Winnipeg.