Learn · Endorsement deep dive
Encroachments
Where an encroachment sits, who knew about it, and which form is attached decide whether it's covered.
The minute version
Covered Risk 2.c and the survey exception
- 2021 Covered Risk 2.c (owner's and loan, same wording) covers encroachments, boundary line overlaps and similar matters that an accurate and complete land title survey of the Land would disclose.
- The standard survey exception removes that coverage. Removing it usually takes a current survey acceptable to the Company; requirements vary by jurisdiction and underwriter.
- Deleting an exception does not create coverage beyond the Commitment or Policy (Commitment Condition 6.d).
- A specific encroachment shown in Schedule B is excepted unless an endorsement gives coverage back.
Owner's vs. loan coverage
- The base Covered Risk 2.c is the same in both 2021 policies.
- Loan: ALTA 9, 9.7 and 9.10 (2021 v. 01.00, 08-01-2025) include encroachment coverage.
- Owner's: the owner's covenant forms (ALTA 9.1-06, 9.2-06, 9.8-06) have no encroachment coverage, so owners use the ALTA 28 series. ALTA 28, 28.1, 28.2-06 and 28.3-06 are available for both owner's and loan policies.
- ALTA 9.3-06 is a loan covenant form without encroachment coverage.
ALTA 9 encroachment coverage
- 2021 ALTA 9, Section 4.a: encroachments of Improvements on the Land onto adjoining land or easements, and of adjoining Improvements onto the Land, unless Schedule B identifies the encroachment.
- Section 4.b: a final court order requiring removal from adjoining land of an encroachment that is identified in Schedule B.
- ALTA 9.7 extends this to Future Improvements built under identified Plans. ALTA 9.10 limits the covenant coverage in Section 3.a to violations existing at the Date of Policy.
The ALTA 28 series compared
- ALTA 28 (2021 v. 01.00, 04-02-2025): damage to, or enforced removal or alteration of, an existing building from exercise of a specific excepted easement. It excludes contamination, explosion, fire, flooding, vibration, fracturing, earthquake, subsidence, and negligence by anyone exercising the easement.
- ALTA 28.1 (2021 v. 01.00, 07-01-2021): boundary and easement encroachments, both onto and from adjoining land, unless excepted. It also covers enforced removal, limited only by exceptions listed in its Section 4. "Improvement" means an existing building.
- ALTA 28.2-06: the same structure, limited to improvements itemized in the endorsement.
- ALTA 28.3-06: adds future improvements built under identified Plans (land under development). Its definition of Improvement includes paved areas.
- ALTA's chart lists 28.2-06 and 28.3-06 as not revised.
Which form fits
- Existing utility easement under the building, worried about damage or forced relocation: ALTA 28.
- Neighbor's building over the line, or your building over the line, on improved land: ALTA 28.1 (loan: often ALTA 9).
- Only certain structures matter, such as a canopy, retaining wall or parking lot: ALTA 28.2-06.
- Building yet to be built: ALTA 28.3-06, or ALTA 9.7 for a lender.
Topic quiz
3 questions on Encroachments
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DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer. Title in a Minute is Shawn Tidwell's personal creation and is not affiliated with, endorsed by, or sponsored by Fidelity National Title Group or any of its companies.