Can a Home Sale Fall Through Because of a Property Boundary Dispute?

 Posted on October 02, 2026 in Real Estate Law

A boundary dispute can absolutely derail a home sale. It usually happens at the worst moment, after inspections are done and the closing date is set. The problem is usually that a title insurer might refuse to cover problems caused by the boundary dispute. A lender may also refuse to fund the purchase until the title problem is resolved.

Most of these situations are fixable, but they take time that a contract may not allow. If a survey turned up a problem with your sale in 2026, a Fairfield County, CT residential real estate lawyer can tell you which fix fits your timeline.

What Boundary Problems Can Show Up Before Closing on a House?

Boundary problems surface when a survey is ordered, which is often the first time anyone has measured the property in decades. Common findings include:

• A fence, wall, or hedge sitting several feet onto the neighbor's land
• A driveway, walkway, or parking pad that crosses the line
• A shed, deck, pool, or garage addition partly over the boundary
• A septic system or well located on adjoining property
• A neighbor's structure encroaching onto the property being sold
• A shared driveway with no recorded easement supporting it
• Deed descriptions that do not match what the survey measures
• An old right of way that nobody has used in years but was never released

None of these mean the sale is dead. They do mean the title company and lender may require additional steps before the closing can move forward.

Why Does an Encroachment Stop a Closing in Connecticut?

An encroachment happens when part of a structure, such as a fence, shed, or driveway, crosses onto someone else’s property. This can create title problems that delay or stop a closing. When a survey shows a structure over the line, the title insurance company may add what it calls an exception to the policy, meaning it will refuse to cover problems caused by it.

A lender may refuse to accept that exception or require the problem to be resolved before funding the loan. The lender needs to know exactly what property is being used to secure the mortgage."

So the sale can stall even when the buyer and seller are fine with each other, and nobody is actually fighting. A long-ignored fence that both neighbors accepted for 20 years can become a transaction problem the moment it appears on a survey.

What Are Your Options for Resolving a Boundary Dispute in Connecticut?

Several fixes exist for boundary disputes. Which one works depends mostly on how much time the contract allows. The fastest is often a boundary line agreement. This is where the two property owners sign and record a document confirming where the line sits.

Under Connecticut General Statutes § 47-10, certain property agreements must be recorded in the town land records so they can affect future owners. Recording a boundary agreement can help make the property line clear if the home is sold later.

Other approaches include:

• Buying a small strip from the neighbor
• Granting or obtaining a recorded easement that allows the structure to remain
• Moving the structure
• Purchasing affirmative title insurance coverage over the encroachment if the insurer is willing to write it

A quiet title lawsuit asks a court to decide who legally owns the disputed property. It is usually a last resort because it can take months and delay the closing."

Can a Buyer Walk Away From a Home Sale Over a Boundary Problem in Connecticut?

Whether a buyer can walk away depends on the contract. Many Connecticut purchase agreements require the seller to provide a clear legal right to the property and give the seller time to fix any title problems.

If the encroachment issue cannot be resolved, the buyer might be able to terminate and recover the deposit. The buyer may also have an option to cancel under a financing contingency if the title problem causes the lender to deny the loan. This type of contingency makes the purchase dependent on the buyer obtaining the required mortgage financing within the terms and deadline set by the contract. Missing contract deadlines, however, can limit those options.

Schedule a Free Consultation With Our Stamford, CT Residential Real Estate Attorney

Attorney Daniel P. Weiner brings 40 years of legal experience to Connecticut real estate transactions. Boundary problems are often solvable. However, the fix depends on what the contract allows and how much time is left. That’s why it is important to get legal help soon after a survey reveals a problem.

Contact Law Offices of Daniel P. Weiner at 203-348-5846 to talk to our Fairfield County, CT residential real estate lawyer today.