What is a Boundary Line Agreement?
A boundary line agreement is a written agreement resolving an uncertainty or dispute about the location of the boundary of two adjoining properties. The legal concept of "adverse possession" has an effect on boundary line agreements, which are frequently made when the neighboring property owners agree on the disputed boundary line and they want to "quiet title," which is a court proceeding to confirm the agreed-upon line .
Although the statutory requirements for an adverse possession deed are only seven years, a written boundary line agreement will establish the agreed-upon boundary line even if it is greater than seven years.
An agreement made between two owners about the true boundary line of their two lots may be placed in the public land records so that anyone who later examines the title to either lot will have notice of the agreement. That agreement is then binding upon the owners of those two adjoining lots and upon their successors in title.
When to Use Boundary Line Agreements
Boundary line agreements often become needed after disputes arise over the location of a boundary line. Also, if you live in an area with no lot survey requirements, or you are near any kind of improvement that may be encroaching (fence, shed, landscaping, etc.), then we often find that litigation involving neighboring landowners is forthcoming. If you have purchased land where the seller did not disclose a boundary line dispute, a boundary line agreement is likely needed as well.
Essentially, if you are involved in a dispute with a neighbor regarding any aspect of the boundary line, that would be a good time to explore settlement in the form of a boundary agreement. However, it is also possible to enter into a boundary line agreement even if there are no current disputes, if you want to resolve the property boundary issues before a dispute arises.
The Process and Legalities of Boundary Line Agreements
To have a legally binding boundary line agreement, written documentation is essential. Without this in place, the agreement may not be enforceable as a court may not recognize it and enforce your understanding.
For the documentation to hold up, it should include the following details:
- Subject Property Address: The common address where the properties are situated.
- Legal Description: A precise, accurate and complete depiction of the subject properties, which includes all metes and bounds and works the property line or survey number into the legal description. If there is an existing survey of the property, an accurate and frequently updated copy of the survey may be placed into the legal description.
- Description of Encroachment: This should detail how the properties will be divided so that neither owner infringes on the other.
- Payment Terms: If appropriate, outline the terms of payment to be made to either party by the other.
- Signatures: Both property owners must sign the documentation.
If it is determined that your boundary line agreement needs to be in writing due to your type of boundary line agreement, it’s important to have such documentation in place as soon as possible because this can be vital to preventing the prescriptive right of adverse possession from being acquired in an area of encroachment. In other words, if a neighbor has trespassed on your property for long enough, he or she may be able to legally claim rights to that property, which can make it difficult or impossible for you to have the situation fixed.
Lawyers are skilled at drafting such documentation and providing advice about any particular requirements for doing so, and even drawing up your new boundary lines on the property, as needed.
Most boundary line agreements can simply be recorded at the local land records office to create a permanent record of the new boundary lines. Attorneys often suggest that their clients have the agreement recorded to potentially avoid issues with the IRS down the road, as failing to have a boundary line agreement recorded may allow the IRS to claim the new line as a gift to the neighbor, which could lead to a tax bill.
Advantages of Boundary Line Agreements
Boundary line agreements can provide numerous benefits to property owners. One of the primary advantages is that these agreements can often prevent legal disputes from arising later down the road. For example, after many years of mowing lawns and maintaining common areas, one neighbor may be inclined to put up a fence along the parties’ common boundary. If no boundary line agreement is in place, that neighbor’s actions may create a potential source of conflict and discord with his or her neighboring property owner. However, with a boundary line agreement in place clearly setting forth the parties’ intentions and their respective rights and duties for the use of their mutual property, a subsequent fence construction may not raise any legal issues. Additionally, boundary line agreements have the potential to increase the value of the property, uprooting the need for future boundary line litigation. With a boundary line agreement in place, potential buyers of the property will know with certainty the border between their property and their neighbor’s property, inherently adding value to the property. Practically speaking, a clear understanding of the existing boundary line will avoid costly fence construction litigation and old-fashioned "fence and tree wars" between neighbors.
Drawbacks and Solutions to Boundary Line Agreements
As straightforward as boundary line agreements may be, there are always a few complications that can arise. These can be anything from neighborly disagreements about land to legalities or even local and state ordinances. The best way to tackle any of these unknowns is to reach out to a lawyer to discuss the type of boundary line agreement you’d like to have.
Disagreements between neighbors
Even though an agreement with your neighbor about your shared boundary would appear to be a simple thing, it can result in serious disagreements. One such dispute results from the fact that your boundary line can be different than the easement line, or the line that belongs to your neighbors. This is obviously a place for conflict, but there are a few possible solutions that involve your neighbors. The most common is to "fence" in your property. The result is that an agreement can be made about where to place the fence so both parties can see who owns which portions of the land. This solution can save you a lot of trouble, especially if your neighbor is particularly sensitive about his or her property.
Local ordinances
If your state, or the county or city where you live has ordinances regarding land and its usage, these should be your first priority when creating a boundary line agreement. Zoning laws sometimes conflict with neighborly law, and this can lead to trouble , especially if you need to excavate land for a fence or plant trees along the border. Before you start to draft an agreement, make sure you’re aware of any ordinances in your area so you don’t end up breaking the law and paying a hefty fine. It’s better to consult a lawyer who knows the local ordinances than risk the penalties associated with violating the law.
Legal issues
Your boundary line agreement should be watertight in terms of legal loopholes, which requires you to think through all of the implications of sharing a boundary with another property. There are many possible hidden costs, such as having to remove, repair or erect fences or other barriers. It’s important that you keep in mind neighborly relations as well. You don’t want to build a fence and then have problems with your neighbor, so be sure to thoroughly discuss any issues with someone who knows the law well and who can help you create a comprehensive agreement that will cover everything that might happen.
Depending on your circumstances, there are a number of considerations you must keep in mind when finalizing a boundary line agreement. Make sure you keep up-to-date with the relevant ordinances, inform yourself regarding the law and talk it over with your neighbor to make sure you’re both on the same page. If you’re in doubt, talk to a professional.
Boundary Line Dispute Case Studies
To illustrate how and when a boundary line agreement might work and what to consider when entering into one, violations as well as some unique solutions, I have set forth three examples of boundary disputes that I have recently seen or been a part of representing property owners.
In the first the facts were relatively simple, but it illustrates the risk of failing to follow a statutory boundary line adjustment process. That issue, which has arisen from time to time in Minnesota, was resolved by the legislature with the passage of the Boundary Line Adjustment Act in 1994. In this scenario, a couple owned a parcel on a lake with a common boundary with their neighbor. The couple sold their property to the neighbor. The couple and the neighbor agreed that the neighbor should be entitled to additional land because of some natural development occurring on the couple’s land to the neighbor’s deficiencies of land with a lake shore. They executed a quit claim deed transferring real property to the neighbor, and had the property surveyed which adjusted the taxable value of their property. No documents were recorded. All of that may have been just fine, but the surveyor, without calling into question the legal descriptions, inadvertently failed to properly enter a line of title to the lake beach of the couple’s property. So now after almost 20 years the couple who is now long gone (from the lake as have their successors in title), the neighbor’s successors in title now own and pay taxes on the land that neither they nor the neighbor knew was not legally conveyed. Solution – none that should be needed because they are unknown to the parties. But, the point is that because statutory cross-easements and right-of-way easement allocation do not require processing by the Court, such remedies permitted by statute will resolve these problems effectively. If the error went unnoticed and the property line is moved, the sale is deemed to have occurred at the higher value, things could get messy.
In the second example, which is really two in one, illustrates circumstances involving or resulting in boundary dispute cases that lead to foregoing the statutory process. The first involved a line along a river with an existing gravel access road leading from the highway down to the river banks. Although the road within the well-defined banks of the river was sufficiently large to allow easy tow-behind boat trailer access, the parties had trouble using the road to get to the river. What they worked out is that the existing road would be paved which would permit use by passenger cars and easier maneuverability by vehicles towing trailers to the river. In considering the options the parties compared the all-in costs of paving and maintaining a joint pavilion and other systems, a fully statutory cross-easement approach which resulted in no maintenance or repair obligation for either party, assessed the regulatory aspects of development, the ability of the other’s success or failure to impair normal use of the other’s land, and reviewed the most-recently approved plans.
In the second part of this example, they reached an agreement through the statutory process that permitted the division of the property into two parcels which would share landlocked rights across the regulated shoreland as a sub-division or sub-lot on the larger parcel which is otherwise zoned commercial. This one is still under review – so stay tuned.
In the third scenario which was settled through extended negotiation rather than a litigation shot across the bow, another simple one, two neighbors reached a complex (in terms of proper documentation and the parties involved) agreement that resolved a fence-walking issue. While surveying the fence, it became clear the neighbor’s fence was located partially on the neighbor’s property. The solution – the two landowners agreed that each of them would shift their property line to the center of the fence, not disclose the historic property line to the county recorder, and permit special assessments in favor of the city of over $20,000 for a road project to be assessed equally on both parcels. Each party stood to gain and lose direct economic benefits, but assessed based on the relative location of the boundaries as a matter of policy supported by case law. A unique solution that resolved a boundary fence dispute, with parcel adjacent to a road and a riparian zone. Best part – everyone won.
In all three situations, both statutory and private property rights issues were resolved in ways that make sense.
Boundary Line Agreement Writing Tips
An agreement made between neighboring landowners can be a useful way of preventing future boundary encroachment disputes. Such a contract usually involves some problem with a fence or wall, but can also include disputes over trees, shrubs, light blocking or obstruction of view. When you and your neighbor have tried to resolve a boundary line issue on your own and have not reached a resolution, it is time to put your agreement in writing. The following should be included: Specific legal description of the property, the landowners and the subject boundary issue that must be resolved. Declaratory statement including an agreement between the landowners as to the true boundary line. All landowners sign and date the agreement stating the boundary to be as set forth in the agreement. Agreement is notarized. A mortgage lender may require that the boundary agreement be recorded in the mortgage documents, but it should also be recorded at the local Land Records Office for downstream purchasers of the property because the agreement will bind future owners.
Hiring a Professional for Your Boundary Line Agreement
Whether you are taking the "path of least resistance" or wanting to do it "for the kids," it is vital to speaking with an attorney (and potentially a surveyor) before entering into an agreement. I cannot begin to emphasize how important it is to speak with an attorney experienced in drafting boundary line agreements to accomplish the final objective you have in mind, and then ensuring you are armed with a metes and bounds description that can be used to have the property properly surveyed and a plat prepared.
When two parties to an agreement can both agree to the boundary line, many times it is a simple process to get it in writing and signed by both parties. Not, so fast! The requirement for documentation varies considerably from one County or City to another. A plat may be required for recordation in addition to the boundary line agreement because Title Companies usually want to have a metes and bounds description with a plat. Depending on the location of the subject property , the County’s legal office may require the boundary line agreement to be signed by both owners prior to approval and recordation.
Simply having a surveyor prepare the metes and bounds description and/or a plat prior to or simultaneuos with the execution of a boundary line agreement by the parties can sometimes prevent the parties from reconsidering whether they had made an agreement they could live with.
Requiring a surveyor to prepare a plat is not only useful for Title Companies, but provides a common language for both parties to agree on the location and dimensions of the resulting property. A surveyor is also usefull in preparing a "calculation of acreage" in the event that major clearing, change in contours of land, or other factors will result in a significantly different size of the total area conveyed.
