Encroachments often sound more serious than they turn out to be.
If you spend any time around Alaska real estate, the word alone can shift the mood. Buyers get cautious. Sellers grow uneasy. Lenders slow things down. In practice, most encroachments are not the deal-ending problems people fear.
Having lived here my whole life and worked through plenty of boundary issues, one thing stands out. The real issue is not whether an encroachment exists. What matters is whether it is understood, documented, and handled correctly.
What an Encroachment Really Is
An encroachment occurs when something physically crosses a property line, potentially affecting a neighbor’s use, access, or legal rights.
Sometimes the issue is minor. It could be a fence that sits a foot over the line. Maybe a shed placed without precise measurements or a driveway edge that drifts slightly onto a neighboring parcel.
Other times, the issue is more significant. Maybe a well, septic system, or utility lines. Access roads might serve one property while sitting partly on another.
In Alaska, these situations often trace back to how the land developed. Large parcels were divided over time. Early owners built what they needed when they owned everything. Years later, parcels were sold separately, and the paperwork no longer matched what existed on the ground.
These choices may have been practical at the time. They simply outlived the original ownership structure.
Why Encroachments Are So Common Here
Alaska did not grow through tight urban grids. Development followed terrain, access, and function.
In areas like Palmer, Wasilla, Big Lake, and across the Mat-Su Valley, subdivisions often came later. Wells were drilled where water was reliable. Septic systems were placed where soil conditions worked. Driveways followed the land instead of a survey line.
Everything functioned smoothly until properties changed hands. That was when surveys were conducted, lines were drawn precisely, and something that had worked for decades suddenly needed to be documented.
Encroachments often reflect history and land use, not carelessness.
When a Survey Changes the Conversation
One of the clearest examples involved a well located about twelve feet onto a neighboring parcel.
Originally, the seller owned both lots. When they drilled the well, the exact boundary did not matter. The system served the home, and there was no reason to think twice about placement.
Years later, the owner sold one parcel separately. The house went under contract. Financing was in place. A survey then revealed that the well was not actually on the house lot.
On paper, that looks like a serious problem. In reality, it was manageable.
The buyer did not need the well moved. They needed legal access, clear maintenance rights, and protection moving forward. At that point, the deal could either unravel or be handled properly.
In most cases like this, the solution is legal rather than physical.
How Easements Provide a Clean Solution
An easement is a legal right to use a specific portion of another property for a defined purpose. For a well, that purpose typically includes access, maintenance, repair, and, if necessary, future replacement.
When addressed early, the process is straightforward:
- Survey the exact location of the well and the property boundary
- Have an attorney draft an easement that clearly outlines rights and responsibilities
- Record the easement so it runs with the land
- Provide the recorded document to the title company and lender
Once recorded, the buyer has permanent, documented rights. The well stays in place, access is protected, and future disputes are far less likely.
Why Lenders and Title Companies Pay Close Attention
Lenders are not focused only on today’s transaction. They are thinking about risk and resale.
If a critical system sits outside the property’s legal boundaries without a recorded easement, financing can stall. Title companies will flag it. Appraisers may condition value on the issue being resolved.
No one is trying to place blame. The issue is marketability.
A future buyer should not need a neighbor’s permission to access water or to repair a septic system. An easement removes that uncertainty. When handled early, it is routine paperwork.
Encroachments vs. Easements: Knowing the Difference
These two concepts are related but not interchangeable.
An encroachment describes the physical situation. Something crosses a boundary line. An easement is the legal remedy that documents the situation and formalizes the necessary legal rights.
Most encroachments do not require moving structures or tearing out systems. They require aligning legal documents with the property’s existing state. That alignment protects buyers, reassures lenders, and keeps deals moving forward.
Understanding the difference helps keep the issue in perspective.
What This Looks Like on the Ground in the Mat-Su Valley
I remember walking a property outside Wasilla late in the fall. Snow had not settled yet, but the ground was already stiff. We flagged corners, paced distances, and listened as the surveyor explained where the boundary actually ran.
The driveway crossed it. A portion of the power service did too. None of it was obvious unless you knew what to look for.
The seller had lived there for years without issue. The neighbor waved as we walked the line. There was no tension, just an understanding that paperwork needed to catch up with reality.
We recorded access and utility easements. The lender approved the file. The buyer closed on time.
By winter, snow covered everything again. Underneath it all, the property and use rights were clear, documented, and settled. That is how many Alaska transactions unfold when handled calmly and methodically.
Why Encroachments Are Not Horror Stories
Encroachments are not automatic red flags. They are signals to slow down and take a closer look.
Most do not escalate into lawsuits or canceled contracts. They call for surveys, legal documentation, and local experience.
Alaska’s development history means these situations will continue to appear, and the system works when documentation reflects reality. Experience and patience make all the difference.
Questions Buyers and Sellers Often Ask
Is an encroachment always a deal breaker?
No. Many are resolved through easements or minor boundary agreements.
Can a lender refuse financing because of an encroachment?
Yes, if access or essential systems lack legal protection.
Does an easement reduce property value?
Not when it formalizes existing use. In most cases, it protects value.
Can a neighbor refuse to grant an easement?
They can, but many situations involve long-standing use or mutual benefit, which makes agreement more likely.
Is it better to resolve this before listing a property?
If the issue is known, addressing it early usually makes the transaction smoother.
Ready to Get Clarity Before You Move Forward?
Encroachments and easements do not have to stall a transaction, but they do need to be handled correctly. That’s why local experience is one of the most valuable resources in Alaska real estate.
If questions come up during a purchase or before listing, the Valley Market Real Estate team can help. We can walk through what you are seeing, explain the options, and help you decide the next step with confidence.
Contact us to talk through your situation and keep the process moving forward.
