Adverse Possession
The term adverse possession is a legal principle that allows a person who resides on another person’s land or possesses another person’s land to get a title for that land. There are some conditions that need to be met for this legal principle to be applied so if one simply resides or has possession of someone else’s land, that does not, in itself, grant them title to that land.
The resider or possessor of the land can receive title to the land but the conditions take into account whether they infringe the right of the actual owner and whether they possess the property for a continuous period of time.
What is Adverse Possession in Real Estate?
This legal principle can be applied in the situation where one party gets title to another party’s property. This can be done with or without the other party’s knowledge, intentional or unintentional.
Intentional Adverse Possession
Intentional adverse possession occurs in case a trespasser deliberately occupies another’s land to either live on it or take it. The trespasser is aware that the property is owned, yet they take possession of it, maintain it, and pay taxes for it.
Unintentional Adverse Possession
When a homeowner accidentally builds a fence on their neighbor’s property the situation can turn into an unintentional adverse possession. The trespasser was unaware that the land where he built the fence belongs to someone else, but as the fence is built, the trespasser is entitled to claim property title for the area occupied by the fence.
How Adverse Possession Work in Real Estate?
For adverse possession to work in real estate, there must be a claimant and a defendant. In order to be granted the title of another person’s land, the claimant of adverse possession needs to prove possession, paid taxes for the property, and a deed for the property.
The requirements necessary for the claimant’s demonstration of possession of land are:
- Continuous use - the claimant must show that they had continuous possession of the property
- Hostile takeover - the claimant must prove that there were no rent agreements, leases, or easements with the other party
- Open and notorious possession - the claimant did not hide the fact that they occupied the land and other people know this
- Actual possession - the claimant doesn’t only live there, but they pay taxes, maintain the land of the property, etc.
- Exclusive use - the claimant is the one who uses the property, no one else, and not the real owner.
In other words, adverse possession is a legal way through which someone who does not own the land, may become the owner of the land and granted title to that land. If the claimant is granted the land or property’s title, they are not required to pay the real owner money for the transfer of ownership.
Popular Real Estate Terms
Various governmental restrictions and controls placed upon land use in a given jurisdictional area. Land use regulations include zoning and building ordinances, housing codes, and ...
A portion of a real estate company's assets financed with debt instead of equity. It involves interest an principal obligations. Financial leverage is beneficial to real estate investors ...
Inverted gable roof design where the two side slope upward from the center to the eaves with a valley in the middle. The roof resembles the wings of a butterfly, hence, the name. ...
The definition of option explains the term as something that can be chosen in spite of having multiple other alternatives. It could be an option for food, which shows a preference for one ...
Provision in a commercial lease providing a financial allowance for a tenant to finish the interior of a building according to individual requirements. ...
Mortgage for residential property. ...
When two or more individuals simultaneously have rights in a property unit (e.g., apartment),. The individuals sharing the property have legal privileges and responsibilities to each other. ...
Return before taxes on the capital invested in real estate property. ...
term used in law stating 'allow the principal to respond'. An owner of property is legally liable for the improper actions of an agent representing him if it is within the scope of the ...

Have a question or comment?
We're here to help.