Every Wednesday, I will be bringing a word or two that relates to real estate and investing.
Today’s word is…
Adverse Possession (n)
Adverse Possession allows a person who uses another’s property to gain ownership when the use is actual, open, notorious, exclusive, hostile, continuous, and long enough (time imposed by state law).
In other words, adverse possession is the take-over act committed where someone who’s been using another person’s property for an extensive continuous amount of time (usually 5+ years, in most states), conducting certain tasks, let’s suppose agriculture (growing crops), and operated publicly. It is where the person (typically considered a trespasser) using the property, physically possesses the property without the consent of the property owner for use in good faith.
Here is a great explainer video I’ve found on Adverse Possession: