What should you do regarding a detached garage that encroaches on a neighbor's property when listing a home?

When listing a home with a detached garage that encroaches on a neighbor's property, making a notation on the listing agreement and informing potential buyers is crucial. This approach ensures transparency and provides essential information that potential buyers need to know when considering the property. Proper disclosure helps mitigate possible legal issues in the future, as the encroachment could become a contentious matter between neighbors.

By including this information in the listing and discussing it with buyers, you allow them to make informed decisions. Buyers may want to assess the risk of the encroachment or even negotiate terms regarding the property prior to proceeding with the purchase. This proactive communication can also foster trust and establish a positive relationship between the agent, the seller, and potential buyers.

Other options may not appropriately address the legal and ethical considerations of real estate transactions. Ignoring the encroachment could lead to potential disputes after the sale. Notifying the neighbor before listing may not fulfill the obligation to inform all relevant parties involved in the transaction. Removing the garage may not be practical or feasible and could incur substantial costs or delays. Thus, providing a clear and open dialogue about the encroachment is the best practice in this scenario.