By
Lucy Carmel, THELAW.TV
Can't
afford a house? That's not stopping some people from snagging their dream home
through an old real estate law known as adverse possession.
Whether you call them squatters or trespassers, people who dwell
in abandoned or unclaimed properties can eventually earn ownership through
tenants' rights.
In general, laws require an adverse possessor to live on the
land openly and notoriously, as a true owner would. Secret occupation doesn't
give the occupant any legal rights. Maintaining or improving the property also
demonstrates open and notorious possession.
Tenants who made an honest mistake and are occupying the
property by relying on an invalid or incorrect deed can also find protection
under adverse possession.
For adverse possession to work, squatters have to stay in the
home for a minimal time period as mandated by the state. This time frame varies
widely by location. The statutory period is just five years in California,
seven years in Florida and a whopping 21 years in Pennsylvania.
During that time, many states, including those listed above,
require the trespasser to have paid property taxes. Some states may also
require the trespasser to have some kind of document.
The
antiquated law's original purpose
Adverse possession was put on the books hundreds of years ago
when the law primarily applied to farm land.
Property records were easily lost and damaged then, and adverse
possession was a way to keep land in productive use when it wasn't clear who
owned or inherited the land.
The "open and notorious" clause was relevant to those using
seemingly abandoned property to produce goods.
"Say
I take control of a field, build a fence around it and till it, that's open and
notorious possession," says Mark S. Schecter owner of the real estate law firm, Schecter Law, in Fort Lauderdale, Fla.
In modern times, adverse possession has been used in minor
property line disputes, such as neighbors putting up fencing near, but not on,
the actual boarders of the property.
Taking
advantage of the law today
A handful of squatters have created famous adverse possession
cases. Still unfolding is thestory of
23-year-old Brazilian national Andre Barbosa's tenancy in a $2.5 million Boca
Raton, Fla. mansion.
The foreclosed luxury home was empty for about a year and a half
as Bank of America took possession of it, and Barbosa claimed adverse
possession.
Police
had their hands tied when it came to removing the trespasser. Barbosa presented
proper adverse possession paperwork, presumably a DR-452 form
available online from the Florida Department of Revenue.
However, a simple lawsuit can take a squatter out of possession,
and Bank of America has already filed a suit.
It doesn't look like Barbosa's efforts will manifest into a
successful squat-to-own case. With just a civil process required to remove
trespassers, it's unlikely for most squatters to successfully become homeowners
through adverse possession. The bank or property owners are likely to show up
at some point to reclaim their property.
Even if Barboasa had succeeded in scoring a waterfront home, the
property would still come with a price.
"In
that area, property taxes are about $35,000 a year," says Schecter. "So he'd
have to pay those for seven years, which amounts to nearly a quarter million
dollars."
In
the past three years, 38 claims of adverse possession have been made in Palm
Beach County, according to the Palm Beach County Property Appraiser.
And
according to RealtyTrac, Florida
has the highest foreclosure rate of any other state, making it a hotbed for
homes that are just sitting there, open to attracting squatters.
So if the real estate world is an oyster for squatters, could
more trespassers become emboldened to take a stab at adverse possession?
"Squatting is making headlines. Anytime you read something in
the paper, you get copycats," says Schecter. "It could also force lenders to
take care of their properties."
Perhaps mortgage companies will begin focusing on their current
mortgagors before reaching the point of repossession and extended vacancies.
