Encroachment agreement question

Encroachment agreement question

Investor · Atlanta, GA · Member since 2016 · 6 posts · 0 votes

Hi all,

my parents own a mountain home in North Carolina. Several years ago when a new survey was done on their property and the property next door, it was revealed that my parents propane gas tank (which was already in place when my parents bought the property) and part of the walkway (ditto) is encroaching upon the neighboring lot. An Encroachment agreement was drawn up between my parents and the owners of the lot next door and recorded in the county were the two properties are located. Now the people who own the lot next door are selling their property to some buyers who want to develop a mountain home and they've requested that the propane tank be moved. Current owner of the lot is offering to pay for moving the tank but not the landscaping (it would make a mess to move the tank). All things being equal, my parents would prefer that the encroachment agreement continues with the new buyers.

My question is: is this encroachment agreement only valid with the current owner? In one of the covenants, there is a subparagraph that attests that this agreement has a binding effect upon the property and continues regardless of new purchasers, successors etc. However, this new buyer is threatening to get attorneys involved because he seems to think that this is not a encroachment granted in perpetuity.

I think my folks are in the clear on this due to the nature of the language in the agreement but the last thing I want to have happen is get lawyers involved and have them have to pay to move the tank since, technically speaking, they are in the wrong.

Don't have any experience/advice in this matter?

Thanks

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Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
9y

The FIRST thing you should do is get an attorney involved. Don't take this wrong but you're asking people to comment on a document that no one has read and that many would not understand if they did.  

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  • Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    The FIRST thing you should do is get an attorney involved. Don't take this wrong but you're asking people to comment on a document that no one has read and that many would not understand if they did.  

  • Adam SchneiderPro Member
    Lender · Raleigh, NC · Member since 2012 · 957 posts · 639 votes
    9y

    @Jeff Bowman How would anyone know about the validity of the encroachment agreement without reading it? Does it state what happens with an ownership change?

  • Investor · Atlanta, GA · Member since 2016 · 6 posts · 0 votes
    9y

    Guy: thanks for your reply. Yes, I understand the need for attorneys in this situation but since attorneys do charge by the hour, I would rather rely on any advice I can glean for free for the first part. At any rate, we are in the first stage of the process and don't need to do anything until one of the parties escalates the situation.

    Adam: thanks for your reply. I am assuming the buyer found the encroachment agreement via his title company or the seller revealed it to them. The encroachment agreement has nothing specific to a change in ownership but as I said before the subparagraph "binding effect, recordation" states the following:

    "it is agreed by record owner, her heirs, successors and assigns here to this agreement will be recorded in the office of the blank County North Carolina register of deeds. This agreement shall be a covenant running with the land and be binding upon the parties hereto, their heirs, personal representatives, grantees, assigns and successors in interest."

    This says to me the encroachment agreement will continue along with new ownership but undoubtedly guy above is correct that lawyers will have to be involved.

  • Investor · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y
    Have you/your parents considered simply negotiating? They said they would pay for moving the tank. Maybe to make it happen, they'll throw in $1,000 for re landscaping too. (Or an appropriate amount based on what's there) By the time lawyers get involved on either/both sides, it'll probably cost more than that. Plus, it's nice to keep on good terms with your neighbors.
  • Adam SchneiderPro Member
    Lender · Raleigh, NC · Member since 2012 · 957 posts · 639 votes
    9y

    @Jeff Bowman -- As you said, the encroachment agreement runs with the land and is binding on heirs and successors. Why would your parents agree to pay for anything in this situation?

  • Investor · Atlanta, GA · Member since 2016 · 6 posts · 0 votes
    9y

    Mike: I certainly agree with keeping on good terms with the neighbors. However, as is my understanding, it is the new buyer who is being overly aggressive in the situation in terms of stipulating that this encroachment agreement is no longer valid. He seems to be trying to bull his way through the situation and force my folks to move the tank based on his interpretations of the legal technicalities rather than trying to negotiate. I am only tangentially involved in this but a lot of these things tend to fall on my plate eventually. I'm trying to figure out how airtight the encroachment agreement is just in case it does get to the lawyer level.

    Adam: I am of the same opinion.

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