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What Are Squatters’ Rights, and Who Can Claim Them?

May 26, 2024

Key takeaways:

  • Squatters’ rights, also known as “adverse possession,” allow someone to claim ownership of a property if they’ve occupied it without the owner’s consent for a specific period.
  • Squatters rights come into play at different periods in different states eg: 12 years in NSW and 15 years in Victoria.
  • To successfully claim adverse possession, squatters must openly and exclusively occupy the property, do so without the owner’s permission, and demonstrate an intention to own it, such as by maintaining or improving the property.

Concerned about squatters rights on your property? Also known as adverse possession, squatters rights, are when someone lives on a property they don’t legally own for a long time and can eventually claim ownership of it.

While it might seem odd that someone can just move into a place and later claim it as their own, there are specific rules and rights that squatters have in Australia. In some states, someone can live in a home for 15 years and call it their own.

Curious? We’ll explain squatters rights in each states. We’ll also use a case study by Owen Hodge Lawyers to illustrate how outlandish some scenarios are.

Understanding Squatters’ Rights

Squatters’ rights enable a person to gain legal ownership of a property if they meet specific criteria. In Australia, the laws vary by state, but the fundamental principle remains the same: continuous, open, and unchallenged occupation of a property can lead to legal ownership.

Key Criteria for Adverse Possession

  1. Continuous Occupation: The squatter must occupy the property continuously for a specific period, which varies by state.
  2. Open and Notorious Possession: The occupation must be obvious to anyone, including the legal owner.
  3. Hostile Claim: The squatter’s possession must be without the owner’s permission.

The Real-Life Case of Bill Gertos : a Squatter Who Won Ownership Rights

Here’s the story of Bill Gertos, who used squatter’s rights to claim a house in Ashbury, and ended up legally owning it. Let’s dive into how this property developer managed to do this and how it could have been prevented. Back in 1998, Bill stumbled upon a deserted property in the Inner West area.

The place was left wide open with doors off their hinges, because the elderly tenant had recently passed away. Seeing the opportunity, Gertos moved in, fixed the locks, and began repairing the place.

He rented the house out for nearly two decades until 2017, when the police informed the original owner’s family about the situation. It turns out, the original owner had moved away from the property after World War II.

The family, feeling robbed of their rightful property, took issue with Gertos when he tried to legally claim the house under the laws of ‘adverse possession’ or squatter’s rights.

Adverse possession, a concept from common law, lets someone own a property if they’ve lived there for a certain period without anyone challenging their stay.

Since Gertos had lived and rented out the property for over 20 years, the Supreme Court granted him full ownership.

Now, how can a squatter end up owning a place?

For landlords, it’s a nightmare when a tenant overstays their welcome. In New South Wales, according to the Real Property Act 1900, a person can claim adverse possession if they’ve lived in the property for at least 12 years, maintaining actual control over it and intending to own it.

Actual control means physically taking care of the property. In Gertos’ situation, actions like changing the locks, fixing the place up, and paying the bills showed his control. Despite public outcry over the fairness, Gertos met the court’s criteria and is now the rightful owner of the $1.6 million house.

In the end, the judge, Justice Rowan Darke, agreed that Gertos had shown enough proof of investing in the house, paying its taxes, and renting it out, which led to the decision in his favor.

Squatters’ Rights Across Australia

The requirements for claiming squatters’ rights differ across Australian states. Here’s a summary:

New South Wales (NSW)

  • Time Period: 12 years of continuous occupation.
  • Requirements: Must show actual control and intention to possess.

Victoria

  • Time Period: 15 years of continuous occupation.
  • Requirements: Similar to NSW, with a longer occupation period.

Queensland

  • Time Period: 12 years (can be reduced to 7 years if taxes are paid).
  • Requirements: Must show actual control and intention to possess.

Western Australia

  • Time Period: 12 years (can be reduced to 6 years if taxes are paid).
  • Requirements: Same as NSW.

South Australia

  • Time Period: 15 years of continuous occupation.
  • Requirements: Same as NSW.

Tasmania, ACT, and NT

  • Time Period: 12 years of continuous occupation.
  • Requirements: Same as NSW.

It is important to note that squatters rights are not absolute, and the owner of the land may still be able to evict the squatter even if they have met the requirements for adverse possession. The owner may also be able to claim compensation from the squatter for the use of their land.

The information provided is based on data available as of the publication date. While we strive to present accurate and comprehensive information, there may be information not covered in this article, and the details mentioned are subject to change.

How to Make an Adverse Possession Claim

Making an adverse possession claim requires a clear understanding of the legal requirements and thorough documentation. Here’s a step-by-step guide:

Step 1: Document Continuous Occupation

  • Keep Records: Maintain detailed records of your occupancy, including photographs, receipts for repairs, and utility bills.
  • Witness Statements: Collect statements from neighbors or others who can attest to your continuous occupation.

Step 2: Demonstrate Control and Improvement

  • Repairs and Maintenance: Document all repairs and improvements made to the property. This shows your control and investment.
  • Security Measures: Evidence of changing locks, installing fences, or other security measures helps demonstrate control.

Step 3: File the Claim

  • Legal Assistance: Consult with a property lawyer to ensure your claim is properly prepared and submitted.
  • Submit to Land Registry: File your claim with the relevant land registry, providing all necessary documentation.

How Property Owners Can Protect Themselves

For property owners, preventing adverse possession claims involves vigilance and proactive measures. Here are some steps to protect your property:

Regular Inspections

  • Frequent Visits: Regularly inspect your property, especially if it is vacant, to ensure it’s not being occupied without your permission.
  • Neighbor Communication: Maintain good communication with neighbors who can alert you to any unauthorized occupation.

Secure the Property

  • Locks and Fences: Ensure all entry points are secure and consider installing a fence around the property.
  • Signage: Use “No Trespassing” signs to clearly indicate that unauthorized entry is not permitted.

Legal Actions

  • Eviction Notices: If you discover a squatter, act quickly to issue an eviction notice.
  • Legal Proceedings: Consult with a lawyer to initiate legal proceedings if necessary to remove the squatter.

FAQs on What Are Squatters’ Rights

What is the process for removing squatters from a property in Australia?

A property lawyer can be engaged to evaluate your legal rights and offer guidance on how to protect your property from squatters. The lawyer can issue a notice of trespass to squatters, which informs them they are occupying the property illegally and must vacate immediately.

Can a tenant claim ownership of a property after 12 years of occupancy in Australia?

In New South Wales, adverse possession laws allow a person to claim ownership of a property if they have exclusively used it for at least 12 years without interruption, under what is known as adverse possession.

What does the term “squatter” mean?

A squatter is someone who resides on or occupies land without any legal rights to the property. They do not have a title, rights, or lease agreement to the land they are using. Squatters can potentially acquire the property through adverse possession, a process requiring continuous occupancy under specific conditions.

How does adverse possession work in Australia?

Adverse possession is a legal principle that allows someone occupying land continuously and exclusively for a set period, typically 15 years in Australia, to claim ownership of that land.

How Do Squatter’s Rights Work?

In order to claim squatter’s rights, a person must meet the following criteria:

  • They must have been in continuous, open, and hostile possession of the land for the required period of time.
  • They must have been aware that the land was not theirs.
  • The owner of the land must have been aware of their presence, but must not have taken any action to evict them.

If a person meets these criteria, they can file a claim with the relevant land registry to have their title to the land registered.

When Did Squatter’s Rights Start?

The concept of squatter’s rights dates back to English common law. It was first codified in Australia in the 19th century.

Possession is 9/10ths of the Law

The phrase “possession is 9/10ths of the law” is a legal maxim that refers to the importance of possession in establishing ownership of property.

In the context of squatter’s rights, this means that a person who has been in continuous, open, and hostile possession of land for a period of time may be able to claim ownership of the land even if they do not have a formal title to it.

How Long Before Property is Considered Abandoned?

There is no one answer to this question, as the definition of “abandoned property” varies from state to state.

However, in general, property is considered abandoned if it has been left unoccupied and unmaintained for a period of time. In some cases, the period of time required for property to be considered abandoned may be as short as 12 months.

Contact Professionals for More Help

Owen Hodge Lawyers is a top tier law firm Sydney residents rely on. Today, the Owen Hodge Sydney law firm provides expert advice in a diverse range of business legal services and personal law matters.

Owen Hodge Lawyers has a team of estate planning professionals who can make sure that this turn of circumstances does not happen to you. Contact them today to organise a consultation on 1800 770 780.

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