Can You Sell a House with a Boundary Dispute?
Selling a house is already a big task, but having a boundary dispute can make it feel even more daunting. However, with the right approach, you can navigate this issue and still achieve a successful sale. Let’s explore what boundary disputes are, the types you might encounter, how to resolve them, and what it all means for your sale.
What is a Boundary Dispute?
A boundary dispute occurs when two property owners disagree on the exact location of the boundary line that separates their properties. These disputes can arise over fences, walls, driveways, or even the legal ownership of a small section of land. Unclear boundaries or mismatched records are often to blame, and resolving these disputes is important to ensure smooth relations with neighbours - and to avoid potential issues when it’s time to sell.
Types of Boundary Disputes
Boundary disputes come in several forms, including:
- Encroachment disputes: When one property owner places a structure, such as a fence or shed, that extends over the agreed boundary line.
- Fence disputes: Common disagreements over the ownership, placement, or maintenance of boundary fences.
- Boundary line disputes: Arguments about the exact location of the boundary line itself, which can be especially common when records are unclear or outdated.
- Disagreements over land ownership: When one property owner claims legal ownership over a piece of land that the neighbouring owner also believes is theirs.
Common Causes of Boundary Disputes
Boundary disputes can happen for many reasons, including:
- Unclear title deeds: Sometimes, property deeds or plans lack specific information on boundary lines, leading to confusion.
- Physical changes: Over time, fences, walls, or natural barriers like hedges can shift or deteriorate, making boundary lines harder to define.
- Neighbour disputes: Simple miscommunications can quickly turn into more serious legal issues if boundary disputes are left unresolved.
How to Resolve a Boundary Dispute
Addressing a boundary dispute before selling your property is crucial for a smooth sale. Here’s how you can go about it:
- Review your title deeds and title plan: Start by examining your property’s title deeds and title plan, which often include details about boundary lines.
- Talk to your neighbour: A polite conversation can sometimes solve the issue quickly, especially if it’s just a matter of clarifying boundaries.
- Hire a land surveyor: Surveyors can assess the property and provide an independent, professional opinion on the exact boundary line, which is often helpful in mediating disputes.
- Seek legal advice: If discussions fail, consulting a solicitor who specialises in boundary disputes can be beneficial. Alternative dispute resolution methods, like mediation, may also help settle the matter without going to court.
- Legal action: As a last resort, you can take the dispute to court. However, legal proceedings can be costly and time-consuming, so it's typically better to explore other options first.
Is There a Time Limit on Boundary Disputes?
Yes, there is. Under the Limitations Act 1980, a property owner who has occupied a piece of land without dispute for at least 12 years may be able to claim legal rights over it through adverse possession. This means if your neighbour has used a section of land that you believe is yours without challenge, they may gain ownership of it after a certain period. This makes it important to address any boundary disputes as soon as they arise.
Can You Sell a Property with a Boundary Dispute?
Yes, selling a property with a boundary dispute is possible, but there are a few important factors to consider:
- Disclosure to potential buyers: When selling, it’s a legal requirement to disclose any boundary issues or ongoing disputes on the property information form. If you fail to inform buyers, you could face legal action later if they claim misrepresentation.
- Impact on sale proceeds: Buyers might make a lower offer on a property with an unresolved boundary issue, as they may be wary of the costs or stress of resolving the dispute themselves.
- Cash-buying services: Some cash-buying companies may still consider purchasing a property with boundary issues, although at a discounted rate. This can be a good option if you need a fast sale.
How to Determine a Boundary Line
Understanding where your property’s boundary lies is essential, particularly if you’re facing a dispute. Here’s how you can clarify your property boundaries:
- Consult the title plan: The title plan will provide an approximate boundary line, which can be a good starting point.
- Hire a land surveyor: A surveyor can create a precise map of the boundary lines and provide a detailed report that’s often helpful in resolving disputes.
Average Cost of Boundary Disputes
The cost of boundary disputes varies significantly based on the complexity of the issue and the actions needed to resolve it. Here’s a general breakdown:
- Surveyor costs: A surveyor’s fees usually range from £500 to £1,500 for a basic boundary assessment, but this can rise if more detailed work is needed.
- Mediation fees: Mediation, which is often less costly than court, typically costs between £500 and £1,500 per session.
- Legal fees: If the dispute goes to court, costs can range from £5,000 to over £30,000. Many property owners try to avoid this due to the high legal costs.
Who Pays for a Boundary Dispute?
Generally, each party covers their own costs for legal advice, surveyor fees, and mediation. However, if the case goes to court, the judge may order the losing party to pay the legal fees for both sides. That said, boundary disputes can quickly become expensive, which is why many homeowners opt for informal or alternative dispute resolution methods when possible.
Final Thoughts
A boundary dispute doesn’t have to derail your sale. By understanding the types of disputes, addressing issues early, and disclosing any unresolved disputes to potential buyers, you can sell your property with confidence. And if you’re considering a quick sale, cash-buying services may provide a viable option, especially if you’re looking to avoid potential costs and delays.