Can You Sell A House With A Boundary Dispute?

What is a boundary dispute?

In the UK, a boundary dispute refers to a disagreement between property owners over the exact line that divides their properties. This can involve disputes over where fences, hedges, walls, or other boundary features should be located. Boundary disputes often arise due to unclear or conflicting information on property deeds, discrepancies in Land Registry plans, or physical changes to the landscape that make original boundary lines unclear.

Selling a house is a significant undertaking, but what happens when a boundary dispute throws a wrench into your plans? This post delves into the intricacies of selling a property amid boundary disputes. Whether you’re a buyer or a seller, understanding the implications of boundary disputes is crucial for a smooth sale.

What’s the average cost of a boundary dispute? 

Costs can vary widely based on the complexity of the dispute, legal fees, surveyor costs, and whether the matter is resolved through mediation or goes to court. For the most accurate and up-to-date information, it would be best to consult a legal professional or a registered UK surveyor who specialises in boundary disputes. 

How do you resolve a boundary dispute? 

Resolving boundary disputes can involve legal processes, including reference to historical documents, hiring surveyors for professional opinions, and, in some cases, court action. The goal is to establish a legally recognised boundary that both parties can agree upon, often guided by the Boundary Disputes Protocol to encourage resolution without resorting to litigation. 

Resolving a boundary dispute in the UK typically involves several steps, aimed at reaching an amicable agreement without the need for costly and time-consuming litigation. Once resolved amicably, this not only saves time and money but also helps maintain good relationships with neighbours. 

Here’s a general approach:

1. Open communication. The first step is to try and resolve the dispute through open and honest communication with your neighbour. 
2. Refer to deeds and the UK Land Registry. Check your property’s Deeds (these are the official ownership documents) and the Land Registry documents for any clear boundary lines or markers. These documents might contain the information needed to resolve the dispute.
3. Hire a surveyor. If the boundary cannot be determined from the Deeds or if there is still disagreement, hiring a chartered surveyor to provide a professional opinion can be helpful. The surveyor can create a detailed plan showing the boundary based on historical data and physical evidence.
4. Mediation. If direct negotiation doesn’t work, mediation by a third party can help both parties reach an agreement. Mediators specialise in dispute resolution and can guide the discussion in a constructive manner.
5. Boundary agreement. If an agreement is reached, it’s wise to record this in a Boundary Agreement document and have it signed by both parties. This agreement can then be lodged with the Land Registry.
6. Boundary Disputes Protocol. Follow the Boundary Disputes Protocol, which encourages resolution through dialogue and professional advice, reducing the need for legal action.
7. Legal advice. If all else fails, seeking legal advice from a solicitor specialising in property disputes might be necessary. They can guide you through the process of taking the dispute to court, although this should be a last resort due to the potential costs and time involved.

Can you sell a house with a boundary dispute?

Yes, it is possible to sell a house with an ongoing boundary dispute, but it comes with its set of challenges. Potential buyers may be hesitant to proceed with a purchase that could involve legal complications or additional costs down the line. Selling a house in the UK with a boundary dispute involves navigating a few additional steps to ensure a smooth transaction. Here’s how you can approach it:

1. Full Disclosure. It’s crucial to be transparent about the boundary dispute when selling your property. Inform potential buyers of the situation from the outset to avoid any legal complications or disputes later on.
2. Provide documentation. Gather and provide all relevant documentation related to the boundary dispute, including correspondence with neighbours, any legal notices, surveyor reports, and deeds or Land Registry documents that detail the disputed boundary.
3. Seek resolution. Before or during the sale process, attempt to resolve the boundary dispute. This could involve negotiation with the neighbour, mediation, or, as a last resort, legal action. A resolved dispute is far less likely to deter potential buyers.
4. Adjust the price. Depending on the severity of the dispute and its impact on the property, you may need to adjust the asking price to reflect any potential costs or risks the buyer might inherit.
5. Legal advice. Consult with a solicitor who specialises in property law and boundary disputes. They can provide advice on how to proceed with the sale, help with negotiations, and ensure that any agreements made are legally binding.
6. Consider indemnity insurance. In some cases, taking out indemnity insurance might be a viable option. This insurance can cover the new owner against any financial losses incurred due to the dispute, making the property more appealing despite the ongoing issue.
7. Highlight the property’s value. Ensure that the property’s other features and benefits are well-presented to overshadow the negative aspects of a boundary dispute. Emphasise the property’s location, amenities, and any unique features to attract buyers.

By taking these steps, you can increase the chances of successfully selling a property with a boundary dispute in the UK. It’s about managing the situation carefully, providing full transparency, and offering solutions that can reassure potential buyers. 

The pitfalls of boundary disputes when selling your property

1. Reduced property value. The uncertainty and potential for future legal issues can devalue your property in the eyes of prospective buyers.
2. **Limited buyer pool. Many buyers prefer not to inherit legal battles, reducing the number of interested parties.
3. **Increased selling time. Resolving or disclosing boundary disputes can prolong the selling process, delaying closure.

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