Key takeout
Adverse ownership allows someone to claim legitimate ownership over another person’s property.
When you buy a home, you naturally assume that you can own it completely and control it. And that’s almost always the case. However, in rare cases, someone can earn praise for your property through what is called unfavourable ownership.
Adverse ownership laws vary from state to state, but each state has one version. And although it can only be in very rare circumstances that someone can win a title on another person’s property by unfavourable ownership, it still helps to understand how it works and what circumstances it will happen.
What is the disadvantageous ownership of real estate?
Adverse Ownership is a legal doctrine that allows someone else’s property to acquire a valid legal title for the property. If a person successfully claims unfavourable possession of someone’s property, they can acquire legal ownership. If they prove unfavourable possession of someone else’s land, they may not have to pay the owner to use it.
Don’t worry – adverse ownership can happen in just a few months. In fact, many states have laws on unfavourable ownership restrictions.
Additionally, certain common law requirements must be met, including ongoing ownership, hostile ownership, and open and infamous ownership. Harmful owners must retain their property for a certain period of time, which depends on the law of limitations.
What are the five requirements for disadvantaged ownership?
Adverse ownership requirements may vary by state and jurisdiction. You can check with your local government to see what your local requirements are, but the following are typical elements of disadvantageous ownership that must be met before you can own the property to a trespasser or squatter.
1. Ownership must be hostile
The definition of hostile claims varies from state to state. Typically, this means that a trespasser or squatter is using the property without an existing contract or license from the landowner. There are three legal definitions that follow before the state becomes unfavourable.
Simple Occupation: This claim is usually followed by most states. They define antagonists as simple occupation of land. Trespassers don’t need to know that there is a true owner on the land. Recognition of Trespassing: Recognizing trespassing, trespassers recognize that they have no legal right to participate or use their property. Honest Mistakes: This rule requires that trespassers make innocent mistakes in occupying their property. For example, they may rely on invalid or false conduct, making them unaware of the boundaries of their property. Only a few states follow this rule.
An example of hostile possession could be a neighbor who relies on incomplete acts of property and accidentally places a new fence several feet within the boundaries of your property. The neighbors were unaware of the actual boundaries of property because they made honest mistakes because they used the wrong thing.
2. Ownership must be continuous
Continuous ownership must be uninterrupted. This means that trespassers will leave the property unmanaged and will not be able to return later. For example, intruders cannot use the land for months or years for farming, leave it unmanned and then cultivate the land later.
3. Ownership must be open and infamous
The open and infamous ownership comes when it is clear that trespassers are trying to gain title to a portion of the land. This may include the full owner of the land that is attempting to investigate the intent of the trespasser.
An example of open and infamous ownership is when someone with a concrete driveway crosses the boundaries of their neighbors several feet at a time, making it seem as if their neighbour’s property belongs to them.
4. Ownership must be actual
Actual ownership means that the person making the claim currently owns property during the legal period. This means that they are using their property by maintaining their property and paying taxes according to state law. Typically, trespassers can establish actual ownership by documenting their efforts to maintain and improve the land.
Essentially, actual ownership means that trespassers are physically present and treating the land as if they were owners.
5. Ownership must be exclusive
Exclusive ownership means that a trespasser must own the land on his own. Furthermore, you cannot share ownership with anyone, including the owner. Ownership is required for a specific period of time without interruption.
Essentially, an intruder cannot return or abandon their property at any time. Each state may have different time limits on this ownership claim.
Examples of disadvantaged ownership
When people consider disadvantageous ownership, especially when it is synonymous with the rights of squatters, we believe that someone is taking ownership of the entire property. And while it’s possible for someone to reverse the ownership of the entire property, it’s much more subtle in most cases.
A common example of disadvantaged ownership may be someone who has decided to build a fence between their property and their neighbors. Whether the person building the fence knows the actual property line or not, they end up building the fence a foot or two in their neighbor’s yard.
Neighbors are unaware of the official property line, but are unaware of the challenge of placing fences. Ultimately, there is more than enough fence to invade the neighbor’s yard so that the party that built the fence can claim unfavourable ownership over those few feet of land.
How to prevent unfavourable ownership
Adverse ownership certainly sounds scary, but that is also very rare. And as a property owner, there are many steps you can take to ensure that your property is not owned at a disadvantage.
Identify the property line
Some unfavorable possession occurs as the parties do not know where the property line is. This can be prevented. You can check your actions and prizes, investigate your property, and check the county’s public records.
Get easements
Easements are legal agreements that allow neighbors to use a portion of your property without the risk of adverse ownership. An example of easements being used is when your neighbors are allowed to park on your property.
It will continue to exist
It is important that it exists in your property. Rather than buying it and giving it away, being present in your property will help you monitor what is happening and give you legal defense against unfavorable ownership.
Check your tax record
In some states, intruders must pay property taxes on their property to grant ownership. If you think someone is trespassing, check your local tax records to see if they paid your property.
Rental or lease property
By renting or leasing property, you can prevent unfavourable ownership. Legal contracts will help negate the hostile elements of ownership and ensure the occupation has an end date.
Unfavorable Ownership FAQ
Will unfavourable ownership apply to new owners?
If you have a newly purchased home, adverse ownership is applicable. This can be prevented by being familiar with the property line and taking precautions such as monitoring the property.
How is unfavourable property different from homesteading or squatting?
Adverse ownership is like a home, but it increases the conditions for meeting a home. A homestead is when government-owned property or land is granted to a new owner who uses it to prove that it is improving if there is no clear owner on record. If the homestetters don’t maintain the land, they could lose it.
What are the laws on unfavourable ownership restrictions?
Laws on unfavourable ownership rely on where you live and the nature of your property. Under some state laws, if you are listed on the deed or paid property taxes, someone can claim unfavourable ownership within just five or seven years. However, many states require a period of 10 or 20 years.
How do you beat unfavourable ownership?
The best way to beat unfavourable ownership is to recognize your state’s laws, recognize your property lines, and be proactive in preventing someone from controlling your property at a disadvantage. Legal contracts such as leases and easements can help prevent the presence of someone on your property from giving them an allegation of possession that is unfavourable.
What if someone claims to have an unfavorable possession of my property?
If someone is claiming unfavourable possession of your property, the first step is to amputate it with your knee. For example, if you notice that your neighbor is building a fence or planting trees on your property, you should remove it immediately. However, if enough time has passed that the other person may make a real claim, you will want to hire an attorney.
Conclusion
Adverse ownership is an interesting legal concept in which someone can take ownership of someone else’s property in certain circumstances. It is a rare event, and generally includes years of ownership and some important features. And as a property owner, there are many positive steps you can take to make sure that doesn’t happen to you.
