Zero Risk Real Estate: Creating Wealth Through Tax Liens and Tax Deeds

Adverse Possession

You might also be able to take possession by what is known as adverse possession. Adverse possession means you acquire title to property because the owner has abandoned it and you’ve essentially taken control of and live on the property. There is also the possibility that you may have to defend yourself against a government condemnation or eminent domain action when the government decides they want to take private property and use it for a public land use. Having a contingency plan in mind is recommended if for some reason you end up taking possession of the property.

In general, legal conditions required by courts in order to rule in favor of adverse possession include:

1. Open and notorious

2. Uninterrupted use for X number of years or more

3. Claim of right

4. Hostile to the owner’s intent

5. Property taxes were paid by the adverse possessor

These requirements are sometimes known as Ouch + Taxes. If you meet the conditions, it may be possible for you to file a quiet title lawsuit establishing that you acquired title through adverse possession. There may be additional requirements and/or variations from jurisdiction to jurisdiction.

Remember that adverse possession means more than just dropping in now and then to do some general caretaking. You have to actually live on the property, which isn’t always feasible if the property has been abandoned and possibly is in disrepair. I would never advise you to start investing a lot of repair money in a property ...