Article 1365 of the Indonesian Civil Code stipulates that any unlawful act causing loss to another person obliges the party whose fault caused said loss to provide compensation. One such unlawful act involves the encroachment upon land owned by another party in the City of Banda Aceh. Therefore, this study aims to explain the legal consequences of encroaching upon land ownership rights following a transfer via land swap (“tukar guling”), as well as the legal protections available to the landowner whose property has been encroached upon.