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Encroachment occurs when a structure, such as a fence or building, intrudes on another property’s boundaries. In the given situation, a fence extending over the property line directly demonstrates this principle, as it infringes upon the legal space that belongs to the adjacent property owner. This can result in legal disputes between property owners regarding land use and ownership rights.

The other scenarios do not qualify as encroachments. For instance, a neighbor's tree shading your property does not violate any property lines; it simply occurs as a natural outcome of the tree's growth. A building constructed too close to the road may violate zoning regulations or building codes, but it does not necessarily encroach on another property’s boundaries. Lastly, a power line passing through your yard may involve easement rights, which are legally granted uses of land but do not constitute encroachment since they typically follow predetermined agreements. Therefore, the correct answer effectively illustrates the definition of encroachment as it involves a physical structure intruding onto another's property.