How should a boundary line dispute be resolved so that the homebuyer is 100% protected from future issues?
There is a right way for the title company to provide 100% protection for the homebuyer (boundary line agreement) and a wrong way that does not (affidavit).
Hallmark Abstract Service demands that the resolution done the right way (boundary line agreement)!
If not done that way, the issue can return and in addition the land in question will not be covered by the title insurance policy.
The attorney for the buyer, charged with protecting the buyer’s interests, should also be 100% on board with the boundary line agreement resolution.
What is a boundary line dispute?
A boundary dispute between neighbors occurs when there is disagreement or uncertainty about the precise location of the property line that separates two adjoining parcels of land. These disputes can arise for several reasons, including:
- Unclear Property Lines: Property deeds, surveys, or maps may be outdated, inaccurate, or unclear.
- Encroachments: One neighbor may build a fence, structure, or other improvement that extends over the perceived boundary onto the other’s property.
- Adverse Possession: One neighbor may claim ownership of a portion of the other’s land by having used it openly and continuously for a long period of time (often 10 years in many jurisdictions).
- Natural Changes: Changes in landscape features (e.g., rivers, trees, or erosion) that may alter perceptions of where the boundary lies.
As a homebuyer, if the neighbor is in some way encroaching on your property (typically by more than 12″), it’s an issue that needs to be resolved before closing.
As a title insurance company, if the issue is not adequately resolved through a boundary line agreement, the disputed land will be excepted, or not covered, in the policy being issued.
The reason for this is that if the boundary dispute is ‘resolved’ through an affidavit, the issue can arise again in the future were the current neighbor to move.
Boundary Line Agreement vs Affidavit
There are two ways to resolve a boundary dispute, with both requiring the signatures of the neighbor.
With one solution there is absolute finality, but with the other the solution can be temporary.
Affidavit – The Temporary and Unsatisfactory ‘Solution’
One way is through an affidavit, nothing more than a bandaid signed by the current neighbor, where the disputed property will not be covered under the title insurance policy. The reason is that were the neighbor who signed the affidavit to sell the property, the affidavit would be null and void and the dispute would be back on the table.
Boundary Line Agreement – Permanent Solution To The Problem!
The other method, a notarized and recorded boundary line agreement, completely protects the new homebuyer, and any subsequent buyers of that property, forever!
There will be a cost to prepare and record the agreement but the property in question will be covered under the title insurance policy.
Conclusion
Resolving a boundary dispute through a boundary line agreement completely protects the new homeowner forever and the disputed piece of the property is covered with the title insurance policy.
The other method, an affidavit signed by the neighbor, is a bandaid that exists only while the current neighbor owns their house and that disputed piece of the property will not be covered under the title insurance policy.
As the title company, we are charged with one job to completely protect the homebuyer in what may be the largest financial commitment of their lives! This is why we insist on a boundary line agreement!
Questions? Let us know at info@hallmarkabstractllc.com or at (516) 741-4723.
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Questions? Contact us at info@hallmarkabstractllc.com or (516) 741-4723.
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