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Advice needed on encroachment issue

I am sure the neighbors idea of correcting the encroachment issue will be to either adjust the property lines or have the buyer agree to allowing the encroachment to remain. Lots of potential issues; unencroached land area, setbacks not only from lot lines, but also between buildings, street frontage, minimum lot width. How does the encroachment impact the buyers plans?

One of my first steps, before looking for comps, would be to research all zoning requirements, setbacks and restrictions. Then I would talk with the zoning administrator to see what his/her thoughts are and what if any approvals are needed. My guess is the lender will cancel the order when informed of the issues, unless they are planning on it being a vacant land loan, which will eventually convert to a construction loan.

Also, if the plan is to remove the existing improvements, not only is the purchase price part of the cost, but so is the removal of the improvements. Not a huge deal regarding the subject, but it could be if you find my comps where an existing structure was removed soon after purchase.
Does an encroachment that is allowed to exist for so long eventually become a legal exception, like an easement can becme prescriptive?
 
Does an encroachment that is allowed to exist for so long eventually become a legal exception, like an easement can becme prescriptive?
Chatty says that the house would be an "adverse possession" that the owner of the lot that is the "basis" of the dwelling unit would need to prove that he or she paid property taxes on that portion of the other lot to obtain ownership of both parts of the du.
 
It might be hard to talk to adjoining owner but owner of subject likely knows if there is a problem. How much would it cost to remove the improvements that are encroaching?
 
Does an encroachment that is allowed to exist for so long eventually become a legal exception, like an easement can becme prescriptive?
I don't think so. Owner could probably buy that part of land that is being encroached on. Remove the encroachment. Probably only two ways.

An easement could be an option. Need a surveyor and a lawyer.

I have no clue what it would cost to remove the encroachment. Is it encroaching a few inches or 20 feet? I don't know. What is it?

Code probably won't care if adjoining owner don't care. We have places in TN that don't even have code enforcement.
 
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