Adverse Possession Claims Mount

While it is not as simple as just moving in and staking a claim, would-be homeowners who do their research can, in fact, gain possession of properties for the mere cost of filing court documents. For example, one Texas “squatter” is currently working on taking possession of a $330,000 mansion – his running tally? 16 dollars in filing costs[1]. Of course, the property is unique. It has been in foreclosure for more than a year and abandoned by the owner. In addition, the lender holding the lien has gone under and, in Texas where the house is located, if neither the lender nor the lien holder are willing to undertake legal negotiations in order to evict the squatter, he can take possession after three years by asking the court for the title to the property.

The process of gaining legal title to a property by squatting – officially known as “adverse possession” – is legal in all 50 states, although the details of the process differ[2]. Texas has an unusually short “continuous residency” requirement of only 3 years; other states require seven to 15. And squatters are not always new inhabitants of the properties. In some cases they are evicted former owners or tenants who simply refused to leave. All states require that squatters attempting to gain title to a property through adverse possession pay all taxes on the property during their stay, and many states protect their rights by requiring a formal eviction if the inhabitants have lived in the property for more than 30 days.

Do you think that squatters attempting to legally gain title are a good thing for a community since they may prevent blight, or is this just a legal loophole that is bad news all the way around?

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