What happens when part of land is sold without making a formal agreement?

When part of a piece of land is sold without a formal agreement, the concept that best describes what happens is the idea of merger. The term "merger" in real estate refers to the combining of different property interests into a single ownership. When land is sold without a formal agreement detailing the transaction, it can lead to a scenario where the new owner may assume ownership of any related or adjacent property, effectively merging ownership rights.

In this context, realizing that the lack of clear documentation can create confusion about ownership and rights is essential. It can complicate property rights and boundaries, and potentially lead to disputes over property lines and usage. When land ownership interests are unclear, the legal interpretations may lead to the merger of interests which can bind or entangle both the original and the new property's rights.

The other options, while related to property law, do not accurately describe the situation of selling land without a formal agreement. Encroachment refers to a situation where a property owner's improvement extends beyond their property lines. Abandonment involves a property owner giving up possession of their property without transferring ownership. Adverse possession is a legal principle that allows someone to claim ownership of land under certain conditions, usually involving continuous and exclusive possession for a statutory period. None of