Origination ActivitiesQuestion 245 of 400
A survey ordered during closing reveals that the neighbor's fence extends three feet onto the subject property. This is an example of:
a.A prepayment penalty
b.An escrow shortage
c.An encroachment that may need to be resolved before closing
d.A rate lock extension
Explanation
When a structure or improvement crosses a boundary line onto another parcel, it is an encroachment. It can cloud title or affect value and may need resolution, such as an agreement or title exception, before closing proceeds. It is unrelated to prepayment penalties or rate locks.
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