Illinois Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

The correct answer is indeed encroachment. Encroachment refers to a situation where a structure, such as a building or fence, extends beyond its owner's property line and intrudes onto the land of a neighboring property owner. This can create a legal issue, as the property owner whose land has been encroached upon may have legal recourse to require the removal of the encroaching structure or to seek compensation.

Area preference, on the other hand, pertains to the desirability of a particular location in real estate, reflecting buyers' preferences for certain neighborhoods or regions. Fixtures refer to items that are permanently attached to the property and are generally considered part of the real estate. A personal easement in gross is a right to use someone else's land for a specific purpose but does not imply ownership or intrusion onto another's property. Thus, the concept of encroachment best captures the scenario of a building being inadvertently constructed on another person's land.