How Much Can Boundary Disputes Cost?
The current hot topic in contentious property matters is boundary disputes.
Following the series of Covid lockdowns, we have all been more confined to our homes a lot more. Therefore, issues that may otherwise have been able to be settled quite quickly are escalating.
Most of the time, these boundary disputes can be over a small strip of land.
But costs can quickly escalate. So, how much can you expect to spend on boundary disputes?
Well, that depends on several factors.
Taking Legal Action Over Boundary Disputes
If the parties involved cannot resolve the issue between themselves, they will have to refer the matter to the County Court or First Tier Tribunal.
However, the cost of the litigation itself often outweighs the value of the land.
Lawyers will always encourage the parties to attempt to mediate and resolve the issues outside of litigation in accordance with the Civil Procedure Rules.
Their overriding objective is that all matters must be just and at a proportionate cost, with Court proceedings being the last resort. The Court will also encourage the parties to settle the matter before going in front of a Judge.
In one case (Gilks -v- Hodgson [2015] EWCA Civ 5), legal costs for the parties spiralled to over £500,000.00.
Different Types Of Legal Boundary Issues
The majority of cases fall into one of three areas:
Common Law Boundary Issues
Common law requires that one of the parties must apply to Court for a Declaration of the boundary line.
This was often dismissed in the past, as litigation costs outweighed land value.
Trespass and/or Encroachment.
Another option is where one party may allege that his land is occupied by another party which could amount to a trespass.
Or where the other side has erected a structure across what the Claimant considers to be the boundary- or even where tree roots have been allowed to cross over the purported boundary.
How To Determine A Boundary
Determining a boundary is set out under the Land Registration Act 2002, Section 60, which says:
(1) The boundary of a registered estate as shown for the purposes of the register is a general boundary unless shown as determined under this section.
(2) A general boundary does not determine the exact line of the boundary
So, whilst it might be evident that the boundary follows a physical feature – either a hedge or ditch or fence – the line on the plan is not to be taken as a legal indicator.
To gain the precise boundary line, an Application should be made to the Registrar by the Registered Proprietor (named as ‘owner’ on the title deeds), in accordance with Rules 117-119 of the Land Registration Rules 2002.
This would then show the exact line of the legal boundary on a large-scale map.
If this is still not agreed between the parties, then you can still have the matter referred to the First Tier Tribunal for a decision.
Applications can also be made to alter the title plan, and this is under Section 65 of the Land Registration Act 2002. This is usually where a mistake has occurred and affects the Registered Proprietor’s title.
Alternative Boundary Dispute Resolutions
At present, there is no other option for parties engaged in a property dispute to seek relief by issuing proceedings and asking a Judge to decide on a boundary or via the First Tier Tribunal.
There have been several attempts to introduce alternative ways for parties to settle boundary disputes and not incur the high costs of litigation.
These include:
- A mediation service administered by RICS and the Property Litigation Association. This comprised of a mixed panel of lawyers, mediators and surveyors who – for a fixed fee of £4200.00+VAT – would provide a report on the boundary in dispute and mediate between the parties.
- In 2017, the Boundary Disputes Protocol was also introduced to set out the latest protocol for parties to consider using when determining property disputes. However, if an agreement cannot be reached, then it does still leave the parties able to refer the matter to the First Tier Tribunal.
Boundary Dispute Solicitors
Ultimately, parties should always come to the table and be prepared to negotiate.
Neither party will likely be satisfied with the outcome, and once litigation starts in any matter, costs will increase significantly. Therefore we would urge any parties to consider this beforehand.
Need help with a boundary dispute? Contact Bennett Griffin today and speak with our expert boundary dispute solicitors.