Can this agreement be signed electronically?

Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA in most states; ensure the signature method shows intent, consent, attribution, and record retention to meet legal validity.

Is notarization or witnesses always required?

Not always. Requirements depend on state practice and whether the instrument will be recorded; some states or recording offices accept unnotarized licenses, while others require notarization and, in a few states, witness attestation.

When should the license be recorded?

Record the license when public notice is desired or when title companies, lenders, or future purchasers must see the encumbrance; recording practices vary by county and may require a notary acknowledgement.

How can the license be revoked or canceled?

Revocation follows the terms in the agreement. If the license is revocable at will, the licensor must provide the contractually required notice; irrevocable licenses generally require mutual consent or conditions stated in the contract.

What happens if the survey is wrong?

If an attached survey is inaccurate, the agreement should include correction procedures and risk allocation; consider a surveyor's certification and a rectification clause to avoid boundary disputes.

Who should retain the executed original?

Each party should keep a signed copy; the licensor or designated record keeper normally retains the original for title, insurance, and dispute purposes; electronic copies must be retained in a reproducible format.

Electronic Signature
Templates
Legal
Encroachment License Agreement

Encroachment License Agreement

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ENCROACHMENT LICENSE AGREEMENT

This Encroachment License Agreement (the "Agreement") is made as of by and between Licensor Name: whose address is Licensor Address: (hereinafter "Licensor"), and Licensee Name: whose address is Licensee Address: (hereinafter "Licensee").

RECITALS

WHEREAS, Licensor is the owner of certain real property and appurtenant public right-of-way located at or adjacent to the property commonly described as Address or Location: (the "Premises"); and

WHEREAS, Licensee desires to install, maintain and operate an encroachment described as Encroachment Description: (the "Encroachment") upon a portion of the Premises; and

WHEREAS, Licensor is willing to permit the Encroachment subject to the terms, conditions and limitations set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the parties agree as follows:

1. DEFINITIONS

1.1 "Authorized Area" means the specific portion of the Premises identified on the attached Site Sketch or described as: .

1.2 "Commencement Date" means the date on which Licensee first occupies the Authorized Area, which shall be no earlier than .

2. GRANT OF LICENSE

Licensor hereby grants to Licensee a non-exclusive, revocable license to construct, install, use and maintain the Encroachment within the Authorized Area solely for the purpose described above and subject to the terms of this Agreement. This license does not create an easement, leasehold, or any interest in real property other than the limited license rights herein granted.

3. TERM

The term of this Agreement shall commence on the Commencement Date and continue for a period of years, unless earlier terminated pursuant to Section 11. At the expiration of the term Licensee shall remove the Encroachment and restore the Premises as required by this Agreement.

4. CONDITIONS OF USE; MAINTENANCE

4.1 Licensee shall at its sole cost and expense install, maintain and keep the Encroachment in good, safe and sightly condition and in compliance with all applicable laws, codes and Licensor policies. All work shall be performed in a professional manner and in accordance with plans and specifications approved in writing by Licensor.

4.2 Licensee shall not permit the Encroachment to encumber or obstruct pedestrian or vehicular circulation except as expressly authorized. Licensee shall promptly repair any damage to the Premises caused by the installation, operation or removal of the Encroachment.

5. LICENSE FEE; SECURITY

License Fee (if any) Security Deposit / Restoration Bond

Payment of the License Fee shall be due as follows: . Licensor may apply the security deposit to costs of remediation, repair or removal in the event Licensee fails to perform its obligations.

6. INSURANCE; INDEMNITY

6.1 Insurance. At all times during the term of this Agreement Licensee shall maintain commercial general liability insurance with limits not less than per occurrence and property damage coverage sufficient to cover potential liabilities arising from the Encroachment. Licensee shall name Licensor as an additional insured with respect to liability arising out of Licensee's activities.

6.2 Indemnity. Licensee shall indemnify, defend and hold harmless Licensor, its officers, agents and employees from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or related to the installation, existence, maintenance, use, removal or operation of the Encroachment, except to the extent caused by the gross negligence or willful misconduct of Licensor.

7. COMPLIANCE WITH LAWS; PERMITS

Licensee shall obtain and maintain at its expense all permits, approvals and consents required by governmental authorities for the Encroachment and shall comply with all applicable statutes, regulations, ordinances and codes. Permit or approval reference numbers (if applicable):

8. INSPECTION; RIGHT OF ENTRY

Licensor and its authorized representatives shall have the right to enter the Authorized Area at reasonable times to inspect the Encroachment and Licensee's compliance with the terms of this Agreement. If Licensee fails to cure a breach within a reasonable time following written notice, Licensor may perform necessary work and charge Licensee for the cost of such performance.

9. ALTERATIONS; REMOVAL; RESTORATION

Licensee shall not materially alter the Encroachment or the Authorized Area without the prior written consent of Licensor. Upon termination or expiration of this Agreement Licensee shall remove the Encroachment at its expense and restore the surface and improvements to the condition required by Licensor. If Licensee fails to remove and restore as required, Licensor may undertake such removal and restoration and charge Licensee for all costs incurred.

10. ASSIGNMENT; SUBLICENSE

Licensee shall not assign, sublicense, transfer or encumber its rights under this Agreement, in whole or in part, without the prior written consent of Licensor, which consent shall not be unreasonably withheld. Any attempted assignment without consent shall be void and of no force or effect.

11. TERMINATION

11.1 Licensor may terminate this Agreement immediately upon notice if Licensee fails to comply with any material term or condition of this Agreement or if Licensee's use of the Authorized Area creates an imminent threat to public safety.

11.2 Upon termination Licensee shall promptly remove the Encroachment and restore the Premises. Licensor's exercise of remedies under this Section shall be cumulative and shall not preclude Licensor from pursuing any other rights or remedies available at law or in equity.

12. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered personally or sent by certified mail, return receipt requested, or by nationally recognized overnight carrier, to the addresses below (or as updated by written notice).

Notices to Licensor Notices to Licensee

13. MISCELLANEOUS

13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state in which the Premises are located.

13.2 Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.

13.3 Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect.

13.4 Amendments; Waiver. No amendment or waiver of any provision of this Agreement shall be effective unless it is in writing and signed by both parties. The failure of either party to enforce any provision shall not constitute a waiver of subsequent enforcement of that provision or any other provision.

13.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

ADDITIONAL PROVISIONS

Encroachment Type (select all that apply)

Awning Signage Outdoor Seating Planters Other:

Site Sketch, Plans or Additional Terms Special Conditions or Observations

Licensor Printed Name:

By:

Date:

Licensee Printed Name:

By:

Date:

What an Encroachment License Agreement Is

An Encroachment License Agreement is a written permission allowing a person or entity to use a portion of another party's land for a specific, limited purpose where an improvement or use encroaches onto adjacent property. Typical licenses address temporary structures, utility lines, fences, driveways, overhangs, landscaping, or access paths; they define the exact area, dimensions, permitted activities, duration, fees or consideration, maintenance responsibilities, insurance requirements, and termination rights. The agreement clarifies that the license does not convey title, may be revocable or irrevocable by contract terms, and often includes indemnity and recordation clauses when the parties want notice to third parties.

Why a Clear License Reduces Disputes and Preserves Value

A formal Encroachment License Agreement documents rights and limits, reduces litigation risk, allocates maintenance and insurance duties, and can generate revenue or permit continued use without transfer of title. Well-drafted terms protect both licensor and licensee and preserve property marketability.

Typical Parties Who Use or Prepare This Agreement

Common users include property owners, municipalities, utilities, contractors, and neighboring property holders who need a temporary or limited right to use land they do not own.

Private property owners and adjacent homeowners negotiating minor encroachments
Municipalities and public agencies granting use of right-of-way for fixtures
Utility companies or contractors installing equipment or accessing easements

Each participant should confirm authority to bind their entity and whether recording, notarization, or additional approvals are required by local land-use rules.

Who Typically Signs and With What Authority

Property Owner

An individual owner or corporate officer with authority to convey limited rights; include title or board resolution when signing for an entity to avoid later challenges.

Public Official

For municipal licenses, the authorized local official or designee must sign and reference enabling ordinances or council resolution to show statutory authority.

Core Parts of a Professional Encroachment License Agreement

A complete agreement sets expectations and legal boundaries. Missing elements invite disputes; include the following core sections to make the license enforceable and operationally useful.

Property Description

Precise legal or metes-and-bounds description plus a referenced survey exhibit showing exact encroachment dimensions and coordinates.

Scope of Use

Clear permitted activities, any equipment or structure allowed, hours or operational limits, and a prohibition on unauthorized expansion.

Term and Termination

Effective date, fixed term or condition-based duration, renewal options, and notice periods for termination or cure of breaches.

Consideration

Monetary payment, in-kind value, or nominal fee; include payment schedule, late fees, and tax allocation if applicable.

Insurance & Indemnity

Required insurance types and limits, indemnity language allocating liability, and naming the licensor as additional insured when appropriate.

Recording & Notice

Whether the license will be recorded, delivery methods for notices, and the process for amending or assigning the license.

Step-by-Step: Preparing and Executing the License

Follow these practical steps to minimize legal and operational friction when creating an encroachment license.

01

Survey the Site: Obtain a current boundary survey showing the encroachment location and dimensions.
02

Draft Terms: Define scope, term, fees, insurance, maintenance, and termination in clear language.
03

Confirm Authority: Verify signatory authority and any municipal approvals or resolutions needed.
04

Execute and Record: Sign, notarize if required, and record instrument if parties want public notice.

Configuring an Online Workflow for This Agreement

Set up an e-sign and routing workflow that captures required fields, optional notarization, and a certified audit trail.

Field	Configuration
Signature Type	Email + SMS code or stronger KBA for high-risk signers
Authentication	Use two-factor or identity proofing for municipal or corporate signers
Conditional Fields	Show insurance section only if licensee selects commercial use
Document Templates	Save standard clauses and exhibits for reuse and consistency

Where to Send and How the Process Flows

Typical distribution starts with preparation, proceeds through signer authentication, and ends with copies delivered to stakeholders and optional recordation.

Prepare Document: Attach survey, exhibits, and insurance requirements.
Send to Parties: Email or secure link with authentication options.
Receive Signatures: Capture signed PDF and full audit trail automatically.
Record & Distribute: Record if required; send final copies to parties and title company.

Technical and Integration Considerations for eSigning

Choose a signing platform that supports secure authentication, audit trails, common document formats, and integrations with your document management systems.

File Formats: PDF, DOCX accepted for upload
Integrations: Connectors like Salesforce or NetSuite are useful
Authentication: SMS, email, or advanced KBA options

Ensure the chosen platform can produce a tamper-evident signed PDF, retain a full audit trail, and meet any required compliance such as HIPAA if health data is involved.

Common Timelines and Notice Periods to Expect

Some timing elements are negotiable; others are driven by recording offices, municipal approval cycles, or insurance effective dates.

Negotiation Window:

Typical 14–60 days depending on complexity

Survey Delivery:

Allow 7–21 business days for a licensed surveyor

Recording Timing:

County recording can take 1–10 business days

Insurance Effective Date:

Set to coincide with license effective date

Renewal Notice:

30–90 days advance notice commonly required

Key Milestones from Draft to Recordation

Use a milestone checklist to track responsibilities and avoid missed deadlines during execution and possible recording.

01

Draft Completion

Agreement text, exhibits, and payment terms finalized.

02

Survey Approval

Parties review and approve the attached survey exhibit.

03

Execution

Signatures obtained and notarization completed where required.

04

Recording/Notice

Instrument submitted to county recorder and copies distributed.

Common Preparation Mistakes to Avoid

Vague boundary language or missing survey exhibits that create ambiguity and disputes over scope and maintenance responsibilities.
Incorrect or incomplete signatory authority for corporate or municipal parties leading to unenforceable signatures or need for ratification.
Failure to address insurance, indemnity, or tax treatment, which can leave one party exposed to liability or unexpected taxes.
Not recording when public notice is needed, causing later purchasers or title searches to miss encumbrance information.

Short Consequences and Legal Risks

Trespass Liability: Potential civil claims

Recording Defect: Clouded title risk

Insurance Gap: Uninsured losses

Contract Breach: Termination or damages

Permit Violations: Fines or corrective orders

Tax Exposure: Unreported income risk

Essential Information to Include on the Face of the Agreement

Legal Description: Parcel and lot ID

Survey Exhibit: Attached map

License Area: Dimensions and markers

Term: Start and end dates

Compensation: Fee and payment terms

Insurance: Required coverage limits

Realistic Use Cases and What They Include

Two practical scenarios illustrate how licenses solve routine encroachment issues while protecting parties and future title.

Municipal Sidewalk Canopy

A cafe seeks permission for a small awning over public sidewalk

Short-term seasonal use, fixed dimensions
The municipality required proof of insurance, indemnity, and a maintenance clause; the license was recorded to provide public notice and avoid future disputes.

Neighbor Fence Encroachment

A property owner's new fence crosses a few inches onto adjacent lot

License negotiates fence retention and maintenance
Parties agreed on monthly consideration, a 5-year term, and removal obligation at owner request with 90 days' notice, preventing litigation.

How an Encroachment License Compares With Similar Instruments

Compare common features of licenses, easements, leases, and rights-of-way to choose the correct instrument for your situation.

Criteria	Encroachment License	Easement	Lease	Right-of-Way
Transferable	usually no	often yes
Recorded	sometimes		sometimes
Exclusive	usually no	often yes		varies
Duration	often limited	often permanent	fixed term	varies

eSignature Vendor Pricing and Feature Snapshot

Comparative pricing and capability overview for signing and managing an Encroachment License Agreement; signNow is listed first per platform comparisons.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Common Questions About Encroachment License Agreements

Answers to frequent legal and process questions covering enforceability, notarization, recording, amendment, revocation, and execution authority.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and UETA in most states; ensure the signature method shows intent, consent, attribution, and record retention to meet legal validity.
Is notarization or witnesses always required?
Not always. Requirements depend on state practice and whether the instrument will be recorded; some states or recording offices accept unnotarized licenses, while others require notarization and, in a few states, witness attestation.
When should the license be recorded?
Record the license when public notice is desired or when title companies, lenders, or future purchasers must see the encumbrance; recording practices vary by county and may require a notary acknowledgement.
How can the license be revoked or canceled?
Revocation follows the terms in the agreement. If the license is revocable at will, the licensor must provide the contractually required notice; irrevocable licenses generally require mutual consent or conditions stated in the contract.
What happens if the survey is wrong?
If an attached survey is inaccurate, the agreement should include correction procedures and risk allocation; consider a surveyor's certification and a rectification clause to avoid boundary disputes.
Who should retain the executed original?
Each party should keep a signed copy; the licensor or designated record keeper normally retains the original for title, insurance, and dispute purposes; electronic copies must be retained in a reproducible format.

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