Real Estate Law
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Did you install the fence?
How long has it been there?
Are there any city or county or neighborhood requirements for fencing?
Ok, then you could argue about whether this was a mutual agreement on both neighbor's parts so as to waive any claim for encroachment.... Or you could, as you mentioned... just pull the whole thing up and dispose of it if they didn't want it any longer.
But they can't force you to reinstall the fence on your property if you don't want to if it actually is encroaching..
So just jerking it out of the ground and leaving the space unfenced might be the simplest option....Then if they want it fenced, let them pay for their own fence..
That is assuming that there are no rules or ordinances requiring fencing.... so you would want to check with any local zoning officials first and also any neighborhood HOA if you are in one..
I just wanted to touch base with you and check in.
Did you have any further questions I can help with?