Easements, Liens, and Encroachments Explained
Three terms appear repeatedly in real estate transactions — easements, liens, and encroachments — and all three can complicate or derail a sale if they're not identified and addressed early. Most sellers have a vague awareness that these things exist but don't know whether their property is affected until a title search surfaces them mid-escrow. Here's what each one means and why it matters.
Easements: rights others have over your property
An easement is a legal right for a third party to use a portion of your property for a specific purpose. Easements are common and don't necessarily impair a sale — but undisclosed or disputed easements can.
- Utility easements: allow power, gas, or water companies to access lines running through your property
- Ingress/egress easements: give a neighbor the right to cross your land to access theirs
- Drainage easements: restrict what can be built in certain areas to preserve water flow
- Conservation easements: limit development rights, often permanently
Liens: financial claims against your property
A lien is a legal claim against a property, typically for unpaid debt. Liens must generally be satisfied before title can transfer. Common types include mortgage liens (expected and planned for), mechanic's liens from unpaid contractors, tax liens from delinquent property taxes, and judgment liens from court-ordered debts. Sellers are often unaware of mechanic's liens from work done years earlier — or judgment liens from personal legal matters that attached to their real property.
Encroachments: physical boundary violations
An encroachment occurs when a structure — a fence, shed, driveway, or addition — extends beyond the property's legal boundary onto a neighbor's land, or vice versa. Encroachments can affect marketability, insurability, and financing. They require either a boundary survey to confirm, a legal agreement with the neighbor, or removal of the encroaching structure.
How a Digs Report surfaces these issues early
The Digs Report's property data layer reviews recorded easements, known liens, and flags potential encroachment issues based on property records and survey data. Identifying these issues before listing gives you time to resolve them — or at minimum, disclose them accurately and price accordingly. Surprises in escrow are expensive; preparation is not.