Ways to profit from an encroachment?

2 Replies


I found an REO that has a unique problem and I smell opportunity. I am trying to see if I can profit either by solving the problem myself, use the problem as a leverage to make a low-ball offer, or do both.


-A single family home is sitting on a small lot (sub-divided within last 20 years).  

-There is a driveway between this improvement and the neighboring house, and the space between the 2 buildings is the width of this driveway (~1 car width).  

-The property line appears to line up with the driveway from the road to the backyard (actually, it is paved and used as parking area) and then bends outwards (~15 deg) toward the neighbor.

-The neighbor uses this parking area to park his/her vehicle --> encroachment for sure.

-The neighbor has no other place to park (the road these 2 houses are on is a 35-mile/hr state road w/ no shoulder), the only way to get to the back of the house is via this shared driveway.

Possible opportunity (<-- this I am trying vet in this forum.  Your opinions and suggestions are greatly appreciated):

1. First make an offer matching the asking price with a clause ... "subject to  verifying survey and encroachment."  2. Then come back and make a low ball offer with a clause "subject to seller resolving the encroachment issue with the neighbor."  3. When the seller rejects, make another low ball offer with the previous clause removed.  <-- maybe the bank will be happy to get rid of this property at this point???

4. after completing the transition, negotiate with the neighbor on: 1) selling the parking space, or 2) renting the parking space.

This is NJ.  If there is any attorney out there who has a strategy to deal with this, please contact me.  


Why are you assuming that a title search will not uncover the existence of a recorded easement for ingress/egress and/or a shared driveway agreement?

Tom Gimer, thanks for your reply!  

I was not fully aware of what a title search can uncover.  I spoke with my attorney yesterday.... he says similar things, paraphrasing... "We should find out what's going on first.  We will need to add 'subject to clauses' on the offer that can give us options after we determine what's really going on."


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