In the Florida Realtors contract, if a survey shows an encroachment, the encroachment will be treated as a title defect.

• A. As a boundary dispute.
• B. The encroachment is treated as a survey defect.
• C. The encroachment will be treated as a title defect.
• D. The encroachment is ignored in the contract.

Answer: (C)

Encroachments shown on a survey are treated as title defects in the Florida Realtors contract. The reason is that an encroachment directly affects the marketability and conveyance of the property’s title—an encroachment can create an ongoing claim or liability against the property or limit the buyer’s ability to receive clear title. Because title insurance and the ability to transfer unencumbered title are central to the transaction, the contract categorizes an encroachment as a title defect that must be addressed before closing.

In practice, this means the seller may be required to cure the encroachment, obtain a title insurance endorsement that protects against it, or the parties may negotiate a price adjustment or other remedies to ensure the buyer can receive marketable title. The goal is to ensure that, at closing, the buyer is receiving title free from undisclosed encumbrances that could affect ownership.

Why this isn’t a boundary dispute or a survey defect? A boundary dispute involves competing claims about where property lines actually lie and is often a civil matter, whereas the contract treats an encroachment as an issue affecting title itself. “Survey defect” isn’t the standard term used in this contract framework, and ignoring the encroachment would leave the title with unresolved risks.