What Are Your Rights If a Property Line or Boundary Dispute Comes Up Before Closing?

What Counts as a Boundary Dispute, and How Does It Surface During Escrow?

A boundary dispute can mean a fence, wall, driveway, shed, or other structure that doesn't line up with the recorded property line, a disagreement with a neighbor over where the line actually sits, or a discrepancy between the legal description in the deed and what's physically on the ground. These issues often surface during a title search, when a buyer orders a survey, or when a neighbor raises a concern after seeing "for sale" signs go up. Sometimes they're already known and simply weren't disclosed; other times they only become apparent once someone actually measures the lot.

Does the Seller Have to Disclose a Known Boundary Problem?

Yes. Under California's Transfer Disclosure Statement (TDS) requirements, sellers are required to disclose known material facts about the property, including encroachments, boundary disputes, and easements they're aware of. If a seller knew about a fence in the wrong place or an ongoing disagreement with a neighbor and didn't disclose it, that can become grounds for legal action after closing — which is exactly why it's better to surface and resolve these issues before the sale closes rather than after.

What Does a Survey Actually Tell You, and Do You Need One?

A licensed boundary survey compares the legal description in the deed against physical markers and existing improvements on the ground, and it's the only way to know with certainty where your property line actually falls. Surveys in Los Angeles County typically run from a few hundred to a couple thousand dollars depending on lot size and complexity. If a preliminary title report flags a boundary concern, or if a fence or structure looks like it might not match the recorded line, ordering a survey before you remove contingencies is usually worth the cost relative to what a dispute could cost after closing.

How Does Title Insurance Handle Boundary Issues?

A standard California title insurance policy generally excludes matters that an accurate survey would reveal — meaning if a fence is in the wrong place, standard coverage may not protect you from that specific problem. An extended or ALTA policy, often paired with a current survey, can remove that exception and provide broader protection against boundary and encroachment issues. If a boundary concern comes up during escrow, ask your title company directly whether their standard policy would cover it or whether you'd need extended coverage, and get that answer in writing before you close.

What Are Your Options If a Dispute Isn't Resolved Before Closing?

If a boundary issue surfaces and can't be fully resolved before your closing date, your options generally include: negotiating a price reduction or credit to reflect the issue, asking the seller to resolve it through a corrective deed or recorded boundary line agreement with the neighbor, extending escrow to allow time for a survey or negotiation, or exercising a contingency to cancel the contract if the issue is serious enough. A licensed real estate attorney can also help determine whether the situation might eventually require a quiet title action, which is a court process that legally establishes ownership when a boundary can't be resolved by agreement.

Frequently Asked Questions

Can I still buy a home if there's an unresolved boundary dispute?

Yes, but you'll want it addressed in writing — either through a price adjustment, a recorded agreement, extended title coverage, or a contingency that lets you walk away if the issue isn't resolved to your satisfaction.

What is adverse possession, and could a neighbor legally claim part of my property?

In California, adverse possession requires open, exclusive, continuous possession for at least five years and payment of property taxes on the disputed area during that entire period. It's a high bar, but it's real, which is why long-standing fences or encroachments are worth investigating rather than ignoring.

What's the difference between adverse possession and a prescriptive easement?

Adverse possession can transfer ownership outright; a prescriptive easement only grants a right to use part of the land, not ownership of it, and doesn't require the claimant to have paid property taxes.

Who pays for a boundary survey, the buyer or the seller?

This is negotiable and depends on the purchase agreement, but it's common for the buyer to order and pay for a survey during their inspection period, especially if a concern has already been raised.

Updated for September 2026.