During a showing of a property at 123 Maple Street, Victoria, your client points out that the vendor's garden shed appears to be built partially over the boundary line onto the neighbour's property. Your client is concerned about potential issues if they purchase the home. What is this situation commonly known as, and what should you advise?

Question: During a showing of a property at 123 Maple Street, Victoria, your client points out that the vendor's garden shed appears to be built partially over the boundary line onto the neighbour's property. Your client is concerned about potential issues if they purchase the home. What is this situation commonly known as, and what should you advise?

Answer options:

• This is a prescriptive easement; advise your client it's a minor issue that can be rectified with a handshake. ✅ This is an encroachment; advise your client to obtain a new survey certificate and potentially seek legal advice regarding resolution options before completing the purchase.
• This is a licence; advise your client that it is a temporary agreement and will cease upon transfer of ownership.
• This is a shared party wall structure; advise your client it's a common arrangement between neighbours.

Correct answer: This is an encroachment; advise your client to obtain a new survey certificate and potentially seek legal advice regarding resolution options before completing the purchase.

Explanation: An encroachment occurs when a structure extends onto a neighbouring property. It can lead to disputes and legal issues, making a survey and legal advice crucial for the prospective buyer.