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Guidelines for Drafting an Encroachment Agreement

06/09/2023
28 min
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Note: Links to our free templates are at the bottom of this long guide.
Also note: This is not legal advice

Introduction

Encroachment agreements are an essential tool when dealing with disputes involving land use. An agreement of this type can provide both parties with clarity on the rights and responsibilities of each party, as well as protection from legal repercussions - a must-have in a dispute around boundaries or public property. But what is an encroachment agreement, and how do you draft one?

An encroachment agreement is a legally binding contract between two parties that sets out the parameters for the use of land. This document outlines who owns the property, who has access and responsibility to maintain it, and can even include provisions for any potential future disputes. The importance of having an agreement in place is clear - without one, parties involved in a dispute may be exposed to legal issues, such as breach of trespass laws.

Encroachment agreements can also serve to protect a property owner’s rights when facing neighbors or other parties disputing usage of shared space - for example, if two people disagree about the use of a driveway then an agreement outlining who can maintain it and when they have access can help settle that disagreement. Furthermore, any changes proposed down the line need approval through this document.

Without knowledge on how to draft such an agreement or seek legal advice on it (which often comes at high cost), many people are left in unclear waters trying not just to understand their rights but also protect them while doing so! That’s why tiktok³ÉÈ˰æ has developed its open source legal template library; millions of datapoints teach our AI what makes up market standard encroachment agreements so anyone can draft (or customize) their own quality documents without needing assistance from traditional professionals or paying high fees associated with seeking out help elsewhere! Our team provides step-by-step guidance - compressing years’ worth of training into minutes - plus information on accessing our template library today; meaning you’re never more than just a few clicks away from creating your own industry-standard contract!

Definitions

Encroachment Agreement: A legally binding contract used to resolve disputes between two parties over the use of property or land.
Encroaching Party: Individual or entity encroaching upon the property of another.
Affected Party: Individual or entity whose property is being encroached upon.
Legal Rights: The rights of each party to use the property or land and the rights of the affected party to retain ownership of the property or land.
Boundaries: Areas of the property or land that are affected by the encroachment.
Responsibilities: Duties of the parties involved in the agreement, such as maintenance and access rights.
Compensation: Amount of money paid to the affected party for the use of their property or land.
Liability: Who is responsible for any damages or losses that may occur due to the encroachment.
Dispute Resolution: Process for resolving any disputes that may arise between the parties.
Termination Conditions: Steps that must be taken to terminate the agreement and the timeline for termination.
Local Building Laws and Regulations: Laws and rules that must be followed when drafting the agreement.
Permits and Approvals: Necessary documents that must be obtained before drafting the agreement.
Documenting: Recording the agreement to ensure that all parties are aware of their rights and responsibilities.

Contents

  1. Definition and Purpose of an Encroachment Agreement
  2. Identifying the Parties Involved
  3. Identifying the Encroaching Party
  4. Identifying the Affected Party
  5. Establishing Legal Rights of the Parties
  6. Establishing Boundaries and Responsibilities
  7. Defining the Area of Encroachment
  8. Establishing the Type and Duration of the Encroachment
  9. Determining Access Rights
  10. Establishing Limitations on Use
  11. Determining Maintenance Responsibilities
  12. Establishing Terms and Conditions
  13. Determining Compensation
  14. Determining Liability
  15. Establishing a Dispute Resolution Process
  16. Establishing Termination Conditions
  17. Compliance with Local Building Laws and Regulations
  18. Researching Local Laws and Regulations
  19. Obtaining Necessary Permits and Approvals
  20. Preparing the Agreement
  21. Drafting the Agreement
  22. Obtaining Advice from Legal Professionals
  23. Signing and Filing the Agreement
  24. Finalizing the Agreement
  25. Signing the Agreement
  26. Filing the Agreement with the Appropriate Agency
  27. Final Considerations
  28. Reviewing and Updating the Agreement
  29. Ensuring Compliance with the Agreement
  30. Tips for Negotiating an Encroachment Agreement
  31. Understanding the Legal Rights of Both Parties
  32. Establishing Flexible Terms
  33. Exploring All Possible Solutions
  34. Being Open to Compromise
  35. Documenting All Agreements
  36. Seeking Professional Advice
  37. Ensuring All Parties Understand the Agreement
  38. Taking the Time Necessary to Reach an Agreement

Get started

Definition and Purpose of an Encroachment Agreement

  • Understand what an encroachment agreement is and why it is necessary in certain situations
  • Determine the purpose of the agreement and what it is expected to cover
  • Identify any relevant laws or regulations that need to be taken into consideration when drafting the agreement
  • Clarify the roles and responsibilities of all parties involved in the agreement
  • Ensure that all parties understand the terms of the agreement and any associated risks
  • When all of the above have been considered, you can begin drafting the agreement.

Once you have fully considered the definition and purpose of an encroachment agreement and identified any relevant laws or regulations, you can check this step off your list and move on to the next step of identifying the parties involved.

Identifying the Parties Involved

  • Identify which parties will be involved in the encroachment agreement. This could include the property owner, the encroaching party, tenants or other stakeholders
  • Confirm the identity and contact information of each party
  • Make sure each party is legally eligible to enter into an encroachment agreement
  • Once the parties are identified, you can move on to the next step.

Identifying the Encroaching Party

  • Review the public records and determine who is proposing the encroachment
  • Speak with the relevant authorities to get a sense of the boundaries of the encroachment
  • Identify the party who is proposing the encroachment
  • Ensure that all documents related to the encroachment are up to date and accurate
  • Once the encroaching party is identified, you can move on to the next step of identifying the affected party.

Identifying the Affected Party

  • Determine the party that will be adversely impacted by the encroachment.
  • Obtain necessary information from the affected party, such as their name, address, contact information, and any other relevant details.
  • Check local and state laws to see if there are any specific requirements for identifying the affected party in an encroachment agreement.
  • Make sure to document all of the necessary information obtained from the affected party in the agreement.

When you can check this off your list and move on to the next step:

  • When you have obtained all the necessary information from the affected party, and have documented it in the agreement.

Establishing Legal Rights of the Parties

  • Research and identify the legal rights of both parties, taking into consideration the local jurisdiction’s laws and regulations.
  • Draft a clause on the legal rights of the parties which outlines the scope and limitations of the agreement.
  • Obtain legal counsel from a qualified lawyer to review the agreement and make any necessary changes to ensure the legal rights of both parties are adequately addressed.
  • Once the legal rights of both parties are established and reviewed by a qualified lawyer, the agreement can be checked off and moved on to the next step.

Establishing Boundaries and Responsibilities

  • Determine the exact boundaries of the encroachment, including the precise location of the start and end points.
  • Identify and agree on which party is responsible for maintaining the area of encroachment.
  • Define the obligations of each party concerning the area of encroachment, including access and use rights, maintenance, repair, liability, and other relevant matters.
  • Ensure that the agreement includes clear language regarding any future modifications to the encroachment.

How you’ll know when you can check this off your list and move on to the next step:

  • When you have established clear boundaries and responsibilities between the two parties and addressed all matters related to the area of encroachment, you can move on to the next step.

Defining the Area of Encroachment

  • Identify the exact area where the encroachment will occur
  • Determine the size of the encroachment
  • List any structures, fences, or landscaping that will be included in the encroachment
  • Specify the exact location of the encroachment on the property
  • Describe the exact nature of the encroachment
  • Make sure that all parties involved in the agreement are clear on the area of encroachment

Once you have identified and described the exact area of encroachment, you can check this step off your list and move on to the next step.

Establishing the Type and Duration of the Encroachment

  • Analyze the type of encroachment that is needed and the duration of the agreement
  • Determine if a license agreement or an easement is necessary
  • Draft the agreement to include the type of encroachment and the duration of the agreement
  • Ensure the terms of the agreement are consistent with the type of encroachment and the duration
  • Obtain signatures of the parties to the agreement
  • Check this off your list and move on to the next step: determining access rights.

Determining Access Rights

  • Identify the access rights that will be granted to the encroaching party, including the right to enter the property, the right to construct, maintain, and operate the encroaching structure, and the right to use the right-of-way.
  • Consider any additional rights the encroaching party may need in order to make use of the encroachment.
  • Specify the duration of the access rights and any limitations and restrictions on their use.
  • Outline the process by which the access rights and any related fees will be reviewed and adjusted to reflect changes in the encroachment over time.
  • Draft and include language that clearly states the parties’ understanding of the rights being granted and any conditions imposed on the use of those rights.
  • When all parties have agreed on the access rights and the terms of their use, the encroachment agreement can be finalized and signed.

Establishing Limitations on Use

  • Identify the specific areas of the property where access rights are granted.
  • Specify who has the right to use those areas and for what purpose.
  • Set reasonable restrictions on activities and use of the property to ensure that the rights of the encroaching party are not unreasonably infringed upon.
  • Clearly identify any additional limitations on the rights of the encroaching party, including restrictions on storage, construction, or other activities, as well as any restrictions on the types of materials that may be used.
  • Make sure that any limitations are reasonable and clearly spelled out in the agreement.

When you have identified the specific areas of the property and have set reasonable restrictions on activities, you can check this step off your list and move on to the next step of determining maintenance responsibilities.

Determining Maintenance Responsibilities

  • Determine which party should be responsible for maintenance of the encroached area
  • Consider how often the area should be maintained, and who should pay for it
  • Discuss and agree upon who should be responsible for the repair of any damages
  • Estimate the cost of any potential repairs if needed
  • Draft the maintenance responsibilities into the agreement
  • Review the agreement and make any necessary adjustments
  • Once all parties are in agreement, sign the agreement and keep copies
  • Check off the task and move on to the next step of establishing terms and conditions

Establishing Terms and Conditions

  • Discuss and agree on any applicable restrictions or limitations regarding the encroachment
  • Decide who is responsible for any costs associated with the encroachment
  • Negotiate and finalize the length of the agreement
  • Outline any conditions that must be met in order for the agreement to remain valid
  • Specify any conditions that terminate or modify the agreement
  • Determine the notification process if either party needs to make changes to the agreement

When you have discussed and agreed on the terms and conditions of the encroachment agreement, you can check this off your list and move on to the next step.

Determining Compensation

  • Determine the amount of compensation the encroacher owes to the landowner for the encroachment.
  • Consider the value of the encroachment, the financial impact on the landowner, and the impact of the encroachment on the landowner’s use of the property.
  • Negotiate the amount of compensation and ensure that both parties are in agreement.
  • Incorporate the amount of compensation into the encroachment agreement.

When you can check this off your list and move on to the next step:

  • When the amount of compensation has been agreed upon and incorporated into the agreement.

Determining Liability

  • Determine who is responsible for any damages, including the cost of repairs, that occur as a result of the encroachment
  • Identify which party is responsible for maintaining the encroachment agreement
  • Establish who is liable for any breach of the agreement
  • Determine who is responsible for any legal fees associated with the agreement

When you have identified who is responsible for the different elements of the agreement, you can move on to the next step.

Establishing a Dispute Resolution Process

• Decide on the type of dispute resolution process you will use, such as mediation, arbitration, or a hybrid of the two.
• Determine the details of the dispute resolution process, such as the number of representatives and the duration of the process.
• Agree on the rules and procedures that will govern the dispute resolution process, such as the rules of evidence and the selection of a neutral third party.
• Include a clause in the agreement outlining the dispute resolution process, including the expected timeline for resolution.
• Outline a plan for how the parties will handle the costs associated with the dispute resolution process.

You can check off this step when you have agreed upon a dispute resolution process and included a clause in the agreement outlining the dispute resolution process.

Establishing Termination Conditions

  • Consider the duration of the agreement, and document the termination conditions
  • Establish the conditions for terminating the agreement and the consequences of termination, such as the payment of any outstanding fees or charges
  • Determine the conditions under which either party may terminate the agreement, and document these conditions in the agreement
  • Establish the consequences of termination for both parties, including any fees or charges, and document these in the agreement
  • Once the termination conditions and consequences have been established and documented, you can check this step off your list and move on to the next step.

Compliance with Local Building Laws and Regulations

• Consult local zoning laws and regulations to determine if the encroachment is permissible.
• Verify the land use requirements of the zoning regulations.
• Ensure that all necessary permits have been obtained.
• Check if the encroachment requires a variance or special permission.
• If the encroachment requires a variance or special permission, contact the local zoning board or commission to determine if it is permissible.
• Provide necessary evidence of compliance with local building laws and regulations.
• When all necessary evidence is obtained, the compliance with local building laws and regulations is complete.

Researching Local Laws and Regulations

  • Gather and review local regulations and laws related to the proposed encroachment
  • Consult with local city or county planning staff to understand the applicable requirements
  • Consider and identify any potential impacts to the proposed encroachment
  • Determine any additional requirements or restrictions that may apply
  • Make a list of any permits or approvals required for the proposed encroachment
  • Make note of any fees associated with any permits or approvals required
  • Check off this step when you have a comprehensive understanding of the applicable local laws and regulations related to the proposed encroachment.

Obtaining Necessary Permits and Approvals

  • Check the local zoning regulations and get the necessary permits and approvals from the local government before proceeding
  • Contact the local government and inquire about the process of obtaining a permit or approval
  • Follow all steps necessary to obtain the required permits and approvals
  • Make sure to note any conditions that may be attached to the permit or approval
  • Once all permits and approvals have been obtained, check this step off your list and proceed to the next step.

Preparing the Agreement

  • Review the permits and approvals obtained and make sure that all requirements have been satisfied.
  • Consult with the legal team to determine the necessary provisions for the agreement.
  • Gather copies of all necessary documents, such as property surveys and boundary line maps.
  • Compile a list of all parties involved in the encroachment agreement.

Once all of the above steps have been completed, you will have a better understanding of the agreement and can begin to draft the document.

Drafting the Agreement

  • Collect all the information necessary for the agreement and create an outline
  • Identify the parties involved, their rights, and obligations
  • Draft a detailed description of the encroachment and the limitations
  • Include all necessary legal language, with specific language for the particular agreement
  • Make sure all agreements are in compliance with applicable zoning regulations
  • Provide a signature line for both parties

Once the agreement has been drafted and all necessary information has been collected, it will be ready to be reviewed by legal professionals.

Obtaining Advice from Legal Professionals

  • Research and compare different lawyers who specialize in drafting encroachment agreements
  • Ask for referrals from people you trust and contact the lawyers to discuss services and fees
  • Ensure the lawyer you choose is registered with the appropriate legal body in your region
  • Ask any questions you have about the process and be sure to get answers before proceeding
  • When you are satisfied with the lawyer and their fees, hire them to draft the encroachment agreement
  • Check off this step when you have hired a lawyer to draft the encroachment agreement.

Signing and Filing the Agreement

  • Have all parties involved in the agreement sign the document
  • Make copies of the signed agreement for each party
  • File the original document with the applicable recording office, such as the county recorder or clerk of court
  • Make sure you have a copy of the filed agreement for your records
  • Once the agreement is signed and filed, you can move on to the next step of finalizing the agreement.

Finalizing the Agreement

  • Review the terms and conditions of the agreement to ensure accuracy
  • Confirm all parties have signed the agreement
  • Request subcontractors to sign the agreement if applicable
  • Once all parties have signed the agreement, attach a copy of the agreement to the original document
  • Make sure all documents are organized and stored in a secure place
  • Once all documents are organized and stored, you can check this off your list and move on to the next step.

Signing the Agreement

  • Have both parties sign the agreement and ensure they are legally binding
  • Have a witness present to sign the agreement as well
  • Make sure all documents are finalized and notarized
  • Once all documents have been signed, witnessed, and notarized, the agreement is legally binding and the steps for signing the agreement are complete
  • You can now move on to the next step: filing the agreement with the appropriate agency.

Filing the Agreement with the Appropriate Agency

  • Contact the local government office to ensure the agreement is valid before filing
  • Obtain the necessary paperwork from the local government office to complete the filing process
  • Submit the agreement and all required paperwork to the appropriate agency
  • Pay any applicable filing fees
  • Receive confirmation from the agency that the agreement has been filed
  • Once you receive confirmation that the agreement has been filed, you can move on to the next step.

Final Considerations

  • Make sure that both parties have signed the agreement.
  • Ensure that the agreement is properly notarized, if necessary.
  • Check that all information in the agreement is accurate and up-to-date.
  • Make sure that all deadlines and other important dates are correct.
  • Make sure that any contingencies are addressed.
  • Ensure that the agreement is filed with the appropriate agency.

Once all of these considerations have been addressed, the agreement is ready to be filed with the appropriate agency.

Reviewing and Updating the Agreement

  • Carefully read the agreement and make sure that all terms accurately reflect the parties’ intentions.
  • Ensure that the agreement includes any changes or modifications that were agreed to by the parties.
  • Make sure that the agreement is properly formatted and that all names and addresses are correct.
  • Review the agreement to ensure that it does not contain any terms that may be illegal or invalid.
  • Make sure that all signatures are present and that the dates are correct.

Once you have reviewed and updated the agreement, you can check this step off your list and move on to the next one.

Ensuring Compliance with the Agreement

  • Review the agreement to make sure it is in accordance with your state’s laws and regulations.
  • Ensure that all parties involved with the agreement understand their rights and responsibilities.
  • Make sure the agreement includes an enforcement clause if any of the parties fail to meet the requirements of the agreement.
  • Confirm that the agreement is legally binding and can be enforced in court.
  • Have all parties sign off on the agreement, and keep copies of the signed documents.

How you’ll know when you can check this off your list and move on to the next step: You’ll know when you have completed this step when all parties have signed off on the agreement and you have copies of the signed documents.

Tips for Negotiating an Encroachment Agreement

• Prepare a draft agreement that outlines the terms of the encroachment.
• Consult a lawyer to review the proposed agreement for any potential legal issues.
• Negotiate the details of the agreement with the affected parties.
• Ensure that the agreement is mutually beneficial for all involved.
• Consider any potential impacts to the environment, neighbors, or local government regulations.
• Finalize the agreement by having all parties sign off on the terms.
• Put the agreement in writing and keep a copy for your records.

You will know when you can check this off your list and move on to the next step when all parties have signed off on the agreement and it is in written form.

Understanding the Legal Rights of Both Parties

  • Research the relevant laws that apply to the encroachment agreement and understand the legal rights of both parties
  • Check with a lawyer to make sure you understand the implications of the agreement
  • Make sure you are familiar with the legal terminology and concepts that are relevant to the agreement
  • Understand the potential consequences of not abiding by the agreement
  • Once you have a thorough understanding of the legal rights of both parties, you can move on to the next step.

Establishing Flexible Terms

  • Discuss any potential conflicts and develop the agreement to address them
  • Determine the scope of each party’s rights and obligations
  • Specify the duration of the agreement and include a provision for renewal
  • Include language that allows for adjustment of terms, if needed
  • Make sure all parties agree to the terms and sign the agreement
  • Create a written record of the agreement, including all amendments
  • When all the parties have agreed to the terms and signed the agreement, you can check this step off your list and move on to exploring all possible solutions.

Exploring All Possible Solutions

  • Identify all potential solutions or methods that could be used to resolve the matter
  • Take into account all legal implications and potential consequences of each potential solution
  • Assess the feasibility of each potential solution given the parties’ resources and abilities
  • Consider the potential costs, benefits, and risks of each potential solution
  • Evaluate the potential for long-term success of each potential solution
  • Once all potential solutions have been explored, decide which one is the best available option
  • When you’ve determined the best available option, you can move on to the next step in the process of drafting an encroachment agreement

Being Open to Compromise

  • Consider the other party’s needs, wants, and interests when negotiating
  • Brainstorm potential solutions to the problem that could benefit both parties
  • Remain open to compromise and be willing to negotiate
  • Accept that the final agreement may not meet all of your expectations
  • Aim to reach a mutually beneficial solution that both parties are happy with
  • Once an agreement is reached, check off this step and move on to the next step of documenting all agreements.

Documenting All Agreements

  • Make

Written by

Alex Denne
Head of Growth

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