" Squatter's " Rights !

When the second world war ended and the troops returned to Australia we faced a severe  housing shortage.  It was not wise to allow a home to remain vacant for even a matter of days because if " squatters " moved in they were hard to remove.  The onus was on the house owner to find them somewhere else to live.

Now a story appearing in newspapers is reviving interest  in what is known as the " adverse possession " law on the NSW law books - and this is colloquially known as the " Squatter's rights "  law.  It can send a shiver down the spine of every property owner to know this still exists and is legally valid.

In 1998 a property developer noticed a house falling into disrepair in a street he visited and learned that its owner had died.  When it remained undisturbed for some time he took possession, changed the locks and had a builder carry out basic repairs and had a tenant move in.   This was a risky manoeuvre but apparently the deceased relatives were unaware the property existed and this arrangement persisted for twelve long years.

In 2017 this developer applied to the court to be  recorded as the owner of the land the house was standing on under this ancient " adverse possession " law, which allows a person to take possession of land if they have occupied it for at least twelve years.   This application was granted and that developer is now the legal owner of the property.  Its present value is in excess of a million dollars.

That story will certainly revive the interest of the many people locked out of home ownership by the price bubble and the reluctance of the lending authorities to finance home sales without a significant deposit.  In every community there are homes that remain vacant and undisturbed for years and the same applies to commercial premises.  It opens up an avenue of opportunity for the many homeless who break into such properties and use the shelter it provides simply because they  have no other choice.  If they can persist for twelve years, they have the legal right to claim ownership.

A few years ago a lot of moneyed people in China became alarmed when Xi Jinping gained office and started a drive against corruption.  Many attempted to gain dual citizenship in other countries and here in Australia we saw a rash of property acquisition.   In some cases it was palatial homes that were left vacant but put in the care of accountancy firms, but in others it was property they intended to redevelop if and when they moved to Australia.   The money seemed safe because they owned property which they would demolish and rebuild if a move to Australia became necessary.

Some such acquisitions required a degree of secrecy and they were officially owned by two dollar companies hiding behind an accountancy firm address.   If these remain vacant they are ripe for plunder under this squatter's law.  All that is required is for the occupier to be able to prove that they have been the occupant for twelve years to claim legal ownership.

It also has application in rural areas.  The Australian countryside has many old, abandoned farm houses dating back to the great depression and should that twelve year claim be established this same law applies.   This is a news story that will start acquisition thinking to move into high gear in many minds  !