Boundary dispute ruling offers important warning to developers

A recent Court of Appeal ruling should serve as a wake-up call for developers about the risks of making assumptions when it comes to property boundaries.

The case involved a developer who built two homes in Devon, mistakenly encroaching by up to 3 metres onto neighbouring farmland. The court ultimately ruled that the homes must be demolished. This was despite the developer’s argument that demolition would be disproportionate. The judgment reinforces a clear message: if you build on land that’s not legally yours—even if unintentionally—you risk losing the entire development.

Our experienced Commercial Property lawyers regularly work with developers on site acquisition and pre-construction planning. If you’re unsure about your development boundaries or want reassurance before you break ground, our commercial property team can help mitigate risk before it becomes a costly error.

What happened?

The dispute centred around a rural boundary with no obvious demarcation. The developer relied on physical features like a hedge and fencing to determine the plot line, but the actual legal boundary was in a different location. The error only became clear when the neighbouring landowner commissioned a survey after the homes were already built.

Despite the developer’s plea that the error was genuine and the loss of the buildings would be financially devastating, the Court of Appeal upheld the order to demolish. The court ruled that even a mistaken encroachment can amount to trespass and must be remedied - particularly where the neighbouring landowner has done nothing wrong.

What commercial developers should take away

This ruling highlights the potentially catastrophic consequences of misjudging land boundaries. Where each project carries significant financial weight, the implications of such a mistake could be terminal for the business.

Key takeaways include:

• Visual clues are not enough: Hedges, fences, and natural boundaries are often misleading. Always verify against title plans and formal surveys.
• Assumptions are costly: Even a good-faith mistake won't necessarily save you from an order to demolish.
• Legal title matters more than effort or investment: The court prioritised property rights over the scale of investment or inconvenience to the developer.

How developers can avoid this happening to them

• Commission a full boundary survey before any works start—particularly where the boundaries are not clearly defined or where adjoining land is undeveloped or agricultural.
• Instruct a commercial property lawyer to review title documentation alongside any plans and surveys. Lawyers can spot red flags, such as ambiguous boundary descriptions or gaps in the title.
• Consider indemnity insurance in higher-risk cases, especially where minor encroachments or disputes are possible.
• Open early dialogue with neighbours, if any boundary uncertainty exists, to reach agreement before it escalates into a legal dispute.

If you’re unsure about your development boundaries or want reassurance before you break ground, our commercial property team can help mitigate risk before it becomes a costly error.

You can also watch our latest webinar series Unlocking Development Potential which discusses boundary disputes in more detail.