Survey results (should I be reconsider purchase?)

[Bill Hughes]

I'm looking to purchase a home from a bank here and once we got to acceptable terms (before signing a purchase agreement) I received notice from them that they wanted to share results of a property survey that shows a neighbor with "encroachment".  Basically, the survey shows that the neighbor's pavement is on the property that I'm interested in.  The houses are only about 10 feet apart and his driveway pavement touches the foundation of the house I'm interested in.  The pavement is about 3ft onto the property.  I've spoken to this neighbor during the 2 times i viewed the home and he was quite open about it.  He said his family were long time friends of the previous ownders and they had a friendly agreement to allow them to put the pavement there.  Personally, I don't see it as an issue.  It actually means I don't have to cut grass or maintain shrubs there but wondering if I should be more concerned about it since a previous prospective buyer walked away because of it.  I won't know what I'm going to do with the house (rent or flip) until I can get someone in to look at the condition of the plaster (if it can be reparied, I'll likely flip, if not, it would make a great rental).  Looking for any helpful guidance.