Squat To Own: How Adverse Possession Laws Really Work

Image representing an adverse possession dispute. A miniature house stands in the center of a tiny seesaw.Photo byAndrii Yalanskyi via Shutterstock

Think home ownership is out of reach? Think again!

Squatting lets you take control of a house through adverse possession laws: no money down!

But is it a legitimate path to homeownership?

Can You Get a Home Through Squatting?

I’m a homeowner – in fact, I own two houses. And no, I didn’t squat to get either. I didn’t even know it was a thing until a few months ago when it came up in conversation with some of my colleagues.

My first thought was, “You can get a free house??”

But of course, logic kicked in, and then I started thinking about the legality and morality of it and how difficult it would be to achieve if it were indeed legal.

Let’s see what I found out!

What is the Law on Squatting?

There’s no way you can just go live in an empty house and claim it as your own, is there?

This isn’t the wild west!

But, legally, there is a way.

Adverse Possession, the legal term for squatting, provides some homeownership rights to people who take control of vacant homes.

Legal Requirements for Adverse Possession

Laws regarding adverse possession vary significantly by state. While some allow squatters full legal rights of owners, others are far stricter. Review your state’s laws to determine the legality and requirements.

We don’t recommend squatting as a viable path to homeownership. However, it’s vital to understand its legality, as the law covers far more than squatting. Therefore, we will outline the general requirements of adverse possession, which include the following criteria for possession:

• Actual
• Open and Notorious
• Exclusive and Continuous
• Hostile

Here’s what that all means.

Actual Possession

Actual Possession means that you must physically be present and live at the property. You can’t just say you are living there and can’t use the property on a sporadic basis. You can, however, leave for regular activities like work and travel.

In addition, you must treat the property as if it were your own, meaning you must make repairs and maintain the home in appropriate living conditions.

Those who destroy a home or let it fall into disrepair don’t meet the criteria of “actual possession.”

Open and Notorious

If you're hiding from the neighbors, you won’t win an adverse possession claim. It must be evident to everyone that you’re staking a claim to the property - even the owner if they visit.

That doesn’t mean you have to put out a banner stating you’re squatting, but your intentions should be clear to anyone who makes a reasonable effort to investigate.

Exclusive and Continuous

Some legal tenants try to claim squatters' rights when they’re living with the real owner. Adverse possession doesn’t apply.

To stake a legitimate claim, you must occupy the property exclusively. A family considered one legal unit (like a married couple with kids) would meet this criteria.

In addition, your occupation must be continuous for the timeframe required by your state (which varies widely, but many states require at least seven years of continuous possession). You can’t squat for a year, leave for four, then squat again for two years and claim adverse possession because you didn’t live at the property for seven continuous years.

Hostile

Hostile in the legal sense doesn’t mean violent. States have different measures of what constitutes a hostile possession.

In most states, merely occupying the property is enough to meet the legal requirements for hostile possession. Others require that you occupy the property with the full knowledge that you have no legal right to it, while some require the opposite – that you occupied the property in good faith that you had the right to it.

Who Created Squatters Rights?

Though adverse possession laws seem unfair to property owners, most arose from logical disputes over deeds. Recorders make mistakes all the time, especially when you go back in time and review the constantly fluctuating property lines.

Sometimes, a homeowner builds a fence or driveway in good faith that it’s on their property. All parties accept it as that owner’s, but recorders discover it’s on a different property line when it hits the market. Since the neighbor never cared, the portion in question should remain with the property that had it built.

Adverse possession also prevents decay. Neighbors would rather someone “squat” in a home and maintain it, thus protecting property values, than let a house fall into disrepair because the actual owner doesn’t care about it.

Has Anyone Gained Property Through Squatting?

I’ve heard stories of squatters gaining property rights in abandoned cities like Detroit, but finding reputable sources that verify any of these claims has been challenging.

Many people try to get homes this way and fail. Often, it’s because the real owners want the house and have made numerous attempts to remove the squatters.

Adverse possession doesn’t allow squatters to steal your home.

However, sometimes people do win.

In one case, a squatter took possession of a dilapidated city-owned apartment. The city made no effort to repair it, and the squatter spent 12 years fixing it. However, once it was livable (and therefore sellable), the city wanted it back.

Cases like this support adverse possession laws. If someone lives in a property, making it noticeable better over many years, with no argument from the owner who’s fully aware and doesn’t care, they can legally gain ownership.

Can Squatters Take Over Your House?

Though I didn’t find many stories about squatters winning their cases for adverse possession, I did see many examples of where they tried. Usually, someone will move into a vacant home, make some repairs, and then claim squatter’s rights or adverse possession.

Unfortunately for them, they don’t always understand the law. You can’t just stay in a home for a few months and claim it as yours.

Most states require at least seven years to make an adverse possession claim.

Tenant’s Rights

Homeowners still struggle to evict squatters, which has nothing to do with adverse possession laws. Numerous states have laws protecting tenant’s rights, which have different stipulations.

The laws on tenant’s rights also vary by state, but in general, if you can prove that you lived in a place for over thirty days, you can claim tenancy, and the landlord will have to go through a lengthy eviction process to get you out.

Unfortunately, squatters claiming tenant’s rights can cost the true owner thousands of legal fees.

Although the legality of squatting in a vacant property that the owner wants back is a grey area at best, the morality is pretty cut and dry.

Moving into someone’s property and forcing them to force you out is wrong.

How Long Can You Squat in a House Until It’s Yours?

The length of time you need to squat in a house until the law gets vague and might let you have it varies by state. In some states, you can get it in as little as three years - but in others, it’s closer to 30 years.

That’s a considerable variation, and even three years is a long time to illegally trespass on a property without getting evicted by the lawful owners.

Final Thoughts on Squatting Your Way to Home Ownership

Although squatting your way to home ownership is technically legal, I would not recommend it.

If you are set on doing it, I only suggest finding a vacant and dilapidated property that no one wants. If the real owners do come for it before you meet the legal requirements for adverse possession, move out without a fuss.

Don’t make someone take you to court to get their land back.

Don’t be that guy.

This article was produced and syndicated by Partners in Fire.