Addressing encroachment - Florida purchase

[Jim Hern]

Hi folks! I'm under contract on a downtown multifamily property where (after I signed the contract) the seller produced a survey showing the neighbor has a fence and shed encroaching into the back of the property by up to three feet. This condition has probably existed for many years and I bet neither the fence or shed are permitted installations. I also learned the neighbor with the fence/shed disagrees with the thought that he encroaches. I understand this encroachment is likely to be mentioned on the title insurance and, assuming my lender decides to lend for this deal, will probably ask me to sign off that I'm ok with this encroachment. I'm trying to decide how I should address this with the seller (if at all) and if in fact the encroachment could create issues for me down the road. While the encroachment doesn't really affect my current intended use of the property I do worry about liability issues and what the next buyer could think. Also, I wonder if there is commonly a value to be assigned to an encroachment like this. I'm nearing the end of my inspection period. Suggestions? Advice? Thanks in advance.