Definition
Adverse possession, sometimes called squatter's rights, is a legal doctrine that allows someone who has openly occupied and used another person's property for a specific number of years to potentially claim legal ownership of it. Requirements vary by state but generally include continuous, open, and hostile possession without the true owner's permission for a set statutory period, often ranging from five to twenty years. For a homeowner, this becomes relevant if you own a vacant or absentee property and someone moves in without permission, because ignoring the situation for too long could eventually jeopardize your ownership rights. Sellers of vacant homes should watch for signs of unauthorized occupants, since a title company may flag a cloud on title if a squatter's claim exists or was previously litigated. Removing squatters typically requires a formal eviction process rather than self-help measures like changing locks, since laws protect occupants even if they moved in illegally. Addressing suspected adverse possession quickly protects your ability to sell the property free and clear.
Example
Owen inherited a vacant rental property out of state from an uncle and, between work and distance, didn't visit it for over a year. When he finally flew in to get the house ready to sell, he discovered a family had moved in, mowing the lawn, fixing up the porch, and even paying the utility bills in their own name for what they claimed was eighteen months. Owen assumed he could simply ask them to leave, but a local attorney explained that changing the locks or removing their belongings himself could expose him to legal liability, and that he needed to file a formal eviction instead. The eviction process took a little over two months and required a couple of court hearings before the family finally moved out. The situation delayed Owen's planned sale significantly, and afterward he hired a local property management service to do regular drive-by checks on the vacant house so he'd catch any future unauthorized occupants much sooner.