Real Estate Council of Alberta Fundamentals Practice Exam

What is an encroachment?

1. Agreement to use land in common

2. A claim filed by the owner of the adjoining property

3. Construction on a property without permission from the adjacent owner

4. A type of financial interest secured against property

The correct answer is: Construction on a property without permission from the adjacent owner

An encroachment refers specifically to construction or physical improvements that extend onto a neighboring property without the consent of the adjacent property owner. This could involve structures such as fences, buildings, or other installations that intrude into another person's legally designated land. The significance of identifying an encroachment lies in the potential legal disputes and rights of the property owners involved, as encroachments can affect property boundaries and ownership rights. In contrast, the other options address different concepts. An agreement to use land in common relates to shared property rights, which does not encapsulate the unauthorized aspect of an encroachment. A claim filed by the owner of the adjoining property would refer to a legal action taken in response to an encroachment, but does not define what an encroachment is. Lastly, a type of financial interest secured against property refers to mortgages or liens, which are unrelated to physical boundaries or construction issues. Understanding encroachments is crucial for real estate professionals, as they must navigate the implications of property boundaries and ensure compliance with local laws to avoid conflicts.