Property with potential adverse possession claim

Hello,

Would appreciate any advice. currently looking at a property that has two semis but on one title (i.e. they aren’t subdivided).

One semi is vacant, but the agent has said that the other semi has a long standing tenant there, but he “casually” noted that the vendor (deceased estate) may not accept a vacant possesion term in the contract.

They have apparently already given notice and its unclear what the tenant is doing. However apparently they have been in there for 20 years+ and again casually he threw out there is a 0.01% chance of a squatters rights claim.

Obviously need proper legal advice, but if the vendor doesn’t accept the vacant possession clause, would you still bid? Google tells me that if a proper tenancy arrangement then negates ability to claim for adverse posession, so could get further evidence of that, but frankly for the price of the property and risk, it feels like the vendor should just offer vacant posession. However, given the strength of the market, not sure all other bidders will be as “demanding”

Secondary question is can they claim adverse posession on only “part” of a property. The semi’s aren’t separated legally, and it is clear that the other semi is not occupied by them and vacant and they are separated by a wall and iron fence. So even if no evidence available of tenanting that “half” of the property, any argument they would make could only evidence their occupied half. woudl that impact the evidence of their claim, or alternative, is there a risk that they could in fact claim over the whole property?

Any insights would be greatly appreciated

Thanks

 

What does your solicitor say?

 

Only just found out post inspection, have emailed so will find out next week but my neuroticism cant wait.

 

How long were they adversely in possession? Was a lease in place?

I personally wouldn't consider it because of the risk you are taking.

 

suspect this is the answer having searched.

Purchasers right with a bad tenant

 

thanks - unclear, ive requested further info.

 

hope you are not using a conveyancer

 

no.

 

If the tenant is paying rent, how can they have ‘squatter’s rights’?

 

For an adverse possession claim to be successful, it must be for the entire property and there are stringent requirements to meet in order to make a claim.

If the vendor has been paying rates on the premises until their demise, collecting rent from the other semi, performance of maintenance etc then there can be no claim.

@bmc has written several replies on this topic.

 

true but you would have to investigate all this and it is easier to find another property

 

Buy title insurance and hope that it sells really cheaply to offset your risk

 

You at least need the full info on what arrangement the "tenant" has here with the owner. And then probably need legal advice based on that info.

 

thanks

 

agree it was really weird. not sure why agent raised, other than to cover himself if he knows that there isnt good evidence.

 

thanks - wouldnt you need to make a declaration re knowledge of potential issues?

 

Have you got it in writing from the agent/on the contract?

 

it's complex and you should seek expert legal advice (as others have mentioned and you acknowledged).

in brief, In NSW, a person can apply to gain the right to adverse possession (squatters rights) of a property if they have remained in that same property for a minimum of 12 years.

During that period, they must have evidence they maintained factual possession of the land with open & uninhibited use to the exclusion of others, and demonstrate an intention to possess the property.

Factual possession requires a level of physical control over the property, like repairing the property, paying bills, rates etc.

 

thankyou - looking at the condition of their semi, there can be no claim of repairing! its borderline derelict.