Squatter’s Rights

You’d be hard-pressed to imagine some of the calls REALTORS® receive. None are more interesting than those related to people asking about how to go about adversely possessing property. It’s always a timely topic, especially in light of a story about someone on the mainland “buying” a home worth over $300,000 for about $16. He apparently did so under the laws of adverse possession in that state. Truth be told, his stay was probably going to be short-lived, but people believe what they read on the internet.

There are several ways you can lose your property without your permission. Your property could be foreclosed to satisfy liens, the government might condemn it for public good, or your estate could be surrendered to the State if you have no heirs. You could also lose it as part of a seizure related to criminal activities.

Understanding Adverse Possession

It’s also possible that by omission, you might allow someone to claim title to your property through adverse possession. In Hawaii, for example, someone other than the owner must occupy the property continuously for 20 years. This period varies from state to state.

Other requirements in Hawaii include that the person attempting to claim adverse possession must occupy the property without the owner’s permission. The occupancy must be so obvious that the owner would certainly know someone was there if they visited the property. Additionally, the person trying to claim title must always represent that they own the property.

Tax Payments Don’t Guarantee Ownership

One common misconception is that paying taxes on a property can establish ownership. This isn’t true. The tax office doesn’t care who pays the taxes; they will mail the bill to the address they are given. Even consistent tax payments won’t prove ownership.

Special Rules for Land Court Properties

Certain properties are exempt from adverse possession claims. In Hawaii, Land Court properties, as well as parcels over 5 acres in size, can never be adversely possessed. Many larger subdivisions, including most Puna subdivisions, are Land Court properties.

Land Court is unique to Hawaii and is an additional system of recordation. Any deeds, liens, or transfers must go before a judge, who approves the transaction. Although the original registration process is often seen as cumbersome, having this extra layer of protection makes sense, especially in Hawaii’s remote areas where thousands of parcels were sold through the mail and some owners have never even seen their property.

Protecting Your Ownership Rights

As a property owner, it’s wise to occasionally visit your property to ensure there are no uninvited guests who might want to threaten your ownership rights. Land Court registration may have been an extra step, but it’s a valuable one that can protect your land from unwanted claims.