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Which of the following would be considered an encroachment?

Correct Answer

B) A neighbor's fence that extends 2 feet onto the subject property

An encroachment is an unauthorized intrusion of an improvement or other real property onto another's land. The neighbor's fence extending onto the subject property is a physical encroachment.

Answer Options
A
A recorded easement for a driveway
B
A neighbor's fence that extends 2 feet onto the subject property
C
A deed restriction limiting building height
D
A utility easement for power lines

Why This Is the Correct Answer

Option B represents a classic example of an encroachment because it involves an unauthorized physical intrusion of the neighbor's fence onto the subject property. The fence is a permanent improvement that crosses the property boundary without legal permission or recorded easement rights. This creates a potential legal dispute and title issue that could affect the property's marketability and value. Encroachments like this are discoverable through accurate boundary surveys and represent unauthorized use of another's land.

Why the Other Options Are Wrong

Option A: A recorded easement for a driveway

A recorded easement for a driveway is an authorized legal right, not an encroachment. Easements are legitimate property rights that have been properly documented and recorded, giving the holder legal permission to use another's land for a specific purpose.

Option C: A deed restriction limiting building height

A deed restriction limiting building height is a contractual limitation or covenant that runs with the land, not a physical intrusion. Deed restrictions are legal limitations placed on property use and do not involve unauthorized physical encroachment onto neighboring property.

Option D: A utility easement for power lines

A utility easement for power lines is an authorized legal right granted to utility companies, typically recorded in public records. Like other easements, this represents legitimate legal permission to use the property for a specific purpose, not an unauthorized intrusion.

The UNAUTHORIZED Fence Rule

Remember 'UPI' - Unauthorized Physical Intrusion. An encroachment must be all three: Unauthorized (no legal permission), Physical (actual structure or improvement), and Intrusion (crossing onto another's property). Think of a sneaky neighbor's fence creeping onto your yard without permission.

How to use: When you see answer choices, apply the UPI test - look for the option that involves an unauthorized physical structure crossing property lines without legal permission. Eliminate any options involving recorded easements or deed restrictions.

Exam Tip

Look for keywords like 'unauthorized,' 'extends onto,' or 'intrudes onto' when identifying encroachments. Immediately eliminate any options mentioning 'recorded easement' or 'deed restriction' as these are legal rights, not encroachments.

Common Mistakes to Avoid

  • -Confusing authorized easements with unauthorized encroachments
  • -Thinking deed restrictions are physical intrusions rather than legal limitations
  • -Not recognizing that encroachments must be both physical and unauthorized

Concept Deep Dive

Analysis

This question tests the fundamental understanding of encroachments versus other types of property rights and restrictions. An encroachment is specifically an unauthorized physical intrusion of one property owner's improvement onto another's land, which creates a potential legal issue and affects property value. The key distinction is that encroachments are unauthorized and physical, while easements are authorized legal rights, and deed restrictions are contractual limitations. Understanding encroachments is crucial for appraisers because they represent potential title issues that can significantly impact property marketability and value.

Background Knowledge

Encroachments are unauthorized physical intrusions of improvements from one property onto another, creating potential legal issues and affecting property value and marketability. They differ from easements (which are authorized legal rights) and deed restrictions (which are contractual limitations on property use).

Real-World Application

During property inspections, appraisers must identify potential encroachments such as fences, driveways, or building overhangs that cross property lines, as these can affect marketability and may require resolution before sale or financing approval.

encroachmentunauthorized intrusionphysical improvementproperty boundarytitle issue

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