As explained by Cornell University’s Legal Information Institute, a demand letter is a letter – typically drafted by a lawyer knowledgeable in real estate law – that mandates an individual take or stop a particular activity.
Such a letter is often used as a way to resolve an encroachment issue relating to commercial property without going to court.
Common types of encroachments
As noted by the Corporate Finance Institute, an online educational provider for investors, owners of neighboring properties may encroach on property lines in various ways. Extending a structure onto another individual’s commercial lot, such as building a fence, or allowing construction debris or structures to extend past a person’s boundary line is one way. Another way to encroach on another’s property is by allowing employees or visitors to cross onto another’s property without their permission.
There is a lot that can be addressed in a demand letter but the information will always depend on specific circumstances and the ultimate goal of the individual drafting it. According to Millionacres, an online resource for real estate investors, in some cases, a property survey may be needed to detail property lines and the exact way the neighboring business is encroaching.
The ultimate goal
The ultimate goal of a demand letter is to resolve the issue without expensive costs involving with litigation. In the event the disputes cannot be resolved and a lawsuit needs to be filed, a demand letter can be evidence to show a party’s good faith intention to resolve the dispute in a reasonable manner.
