What is Adverse Possession?

You may not have heard the term, but you know about it if you are familiar with the word “squatting.”

Adverse possession occurs when a party takes over a residence or a piece of property that does not belong to them. Squatters do not have legal permission of the property owner to occupy the space they are claiming.

Does Adverse Possession Ever Happen in California?

Yes. Consider the 2003 case of the Orange County Nellie Gail Ranch Owners HOA who sued a homeowner who fenced and landscaped a portion of property belonging to the HOA. The homeowner had quietly appropriated this piece of HOA land for several years. When the HOA noticed a piece of their surveyed property had somehow vanished, they sued their neighbor for adverse possession.
The homeowner lost the case for a bigger back yard as they neglected to pay additional property taxes over the years.

How Does Adverse Possession Happen?

Adverse possession situations sometimes involves “open and notorious” squatting. This is a situation where a property is occupied in plain sight, by an individual who sees an opportunity to claim a property that appears to be abandoned, or at least not contested.  A place like this might be tied up in a family trust, or perhaps the owner died, or maybe the property is in foreclosure. In California, if the rightful owner does not pay property taxes for five years, the squatters could claim possession.

What Are the Rules in California regarding Adverse Possession?

• Persons attempting to possess a property must be physically using the property – fencing it, living on it or using it for their own purposes;
• The attempt to possess the property must be obvious to neighbors and property owners;
• The owner cannot permit any ownership agreement, no matter how casual;
• The usurping party must occupy the property for five continuous years; and
• Pay the property taxes during that period to attempt to gain ownership

Can You Protect Your Property from Adverse Possession?

Yes. Pay attention to any property you own but do not live on. Visit your property on a monthly or at least annual basis, inspect it and check boundary lines and fences. You’ve heard the expression, “Good fences make good neighbors.” Observe encroachment activity near your fences, and know your survey definitions and specific property lines.  If your neighbor is doing a large construction project, have they moved the fence line closer to your home thereby encroaching on your yard?  If your property is vacant, post “No Trespassing” signs. Take photos and get to know your neighbors. Challenge incursions – note attempts by people to encroach on your property regardless of how innocent they may appear. Get any concessions you may agree to in writing.

Always Pay Your Property Taxes to Avoid Adverse Possession

This is your best protection in California. Pay your property taxes. If your property is involved in a lawsuit, an estate settlement or a foreclosure, make sure property tax payments continue uninterrupted. Neglecting these payments could cost you your property after five years.

Adverse Possession Lawsuits Solutions

Contact a real estate law professional as soon as possible if adverse possession becomes an issue with your property. Timing is urgent if you encounter an adverse possession situation.

Know Your Rights. Protect Yourself.