North Carolina Laws Concerning an Adverse Possession
Adverse possession laws, also known colloquially as "squatter's rights," are state laws based on the English common law doctrine of adverse possession. Derived from an economic principal of avoiding property dissipation or waste, the theory of adverse possession allows a court to award property in favor of a trespasser using another's property without permission or payment. In North Carolina, the General Assembly allows adverse possession owners to rightfully and legally claim ownership rights if they meet the statutory requirements of continuous, hostile and adverse use.
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Overview
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Adverse possession laws are based on economic theories. State statutes allow third parties to use others' real property violating their trespassing laws if the use prevents economic waste. If an adverse use tenant is wrongfully using an owner's property without his permission, and he uses it for a minimum number of years, a court may allow him to inherit ownership rights and may transfer title to him, if the actual property owner is allowing her property to go to waste.
North Carolina Statute
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For example, if a property owner does not use his vacation property for a few years, and he does not take care of his property, an adverse possession tenant could begin using his property, mowing his lawn and preventing it from going to waste. If the owner subsequently sues the tenant to enjoin him from using his property, he may have lost his ownership rights, depending on his state's adverse possession requirements. In North Carolina, the state's adverse possession code allows trespassers to gain ownership after 20 years of continuous and open use.
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State Variations
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Not all states recognize adverse possession ownership and will not transfer ownership rights to trespassers. Furthermore, in some states, adverse ownership statutes allow trespassers to gain ownership rights in less than 20 years. However, most states require at least 20 years of continuous use. Some states, including California, require that adverse possession tenants actually pay property taxes for a statutory number of years before they can gain ownership.
Continuous and Open Use
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Article 4 of the North Carolina General Statutes codifies the state's adverse possession laws. Trespassers must use property for at least 20 years and must use it openly and notoriously. The open and notorious use requirements dictate that trespassers cannot claim ownership without using another's property openly such that the public would assume they were the actual owners. For example, merely stepping foot on another's property may not be open use; however, encroaching on another's property to water his lawn every day for 20 years may be open and hostile use.
Challenging Use
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North Carolina owners must assert ownership and use their land actively to prevent continuous use for 20 or more years. For instance, they can post "no trespassing" signs on their property or provide permission to trespassers allowing them to use their property with their consent. In this case, providing permission would negate the adverse use requirement.
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