What happens if my neighbour's fence or structure is on my property?

An encroachment occurs when a structure — a fence, deck, shed, or even part of a building — extends over a property line onto your land. In Ontario, encroachments can affect the value of your property and limit what you can do with the strip of land that is occupied, and they may also create legal liability.

If a title search and survey show an existing encroachment onto the property you are buying, your lawyer will advise you on the options: require the seller to get the encroachment removed before closing; obtain a formal encroachment agreement or licence that puts the neighbour's use of your land on a documented legal footing; negotiate a price reduction to account for the issue; or obtain an indemnity and rely on title insurance. Which option makes sense depends on how significant the encroachment is and whether the neighbour is cooperative.

Title insurance covers losses from encroachments that were not discovered before closing — for example, because no current survey existed. If the encroachment is later discovered after you move in, your insurer can help you defend your title or compensate you for the diminished value of the property. Leaving an encroachment unaddressed for many years can in some circumstances give rise to adverse possession claims under Ontario law, though the bar for that is high under the Land Titles system.