07 February 2020
Property - Encroachment of fence - Compensation
My client's neighbour has put up a fence that is 60 cm over our client's boundary. The client is happy for them to keep it as long as they pay compensation. In this regard how do you value compensation?
Also if compensation is agreed, should the boundaries for the properties be redefined and, if so, how would our client do that? Or should an easement be registered?
Thank you for the question.
One alternative is a realignment of boundaries by subdivision and a sale of the strip at an agreed price or a price determined by valuation.
A fenced-in easement results in the same loss of use as a sale of that land.
A licence for a short term is a possibility but probably not in accordance with the long-term plans of the neighbour or the cost of the subsequent removal of the fence.
A sale or nothing seems the only real choice. If a sale is chosen, the neighbour would need to agree to bear the cost of the subdivision approval, transfer costs and any mortgagee consent.
Regards
Mentor
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