Adverse possession is a legal principle that allows someone to gain ownership of property they’ve been using — without permission — over an extended period of time.

It’s often confused with “squatters’ rights,” but adverse possession doesn’t mean someone can just break into your home and call it theirs.

In most cases, it happens between neighbors — for example:
A neighbor installs a fence or garden that extends onto your property.
They maintain it, use it, or even pay taxes on it for many years.
When you sell the property or have a new survey done, the overlap appears.
By then, your neighbor might have a legal claim.

 What Does the Law Require?

While laws vary by state, most courts look for these five key elements before awarding ownership:

1. Actual and continuous use – The person must occupy or use the land for a specific period (commonly 5–20 years).
2. Exclusive possession – The land isn’t shared with the owner or the public.
3. Hostile possession – The use happens without the true owner’s permission.
4. Open and notorious – The use must be obvious to anyone — no hiding or sneaking.
5. Continuous possession – There can’t be long breaks in the use of the property.

In many states, paying taxes on the land can strengthen a claim.

Real-Life Example

Say you buy a rental property in Charleston with a vacant side lot.
Your neighbor, thinking that part of the land is theirs, builds a shed and keeps it maintained for a decade.

You discover the overlap during a new survey — but since they’ve continuously used that space, the court might recognize their ownership through adverse possession.s

How to Prevent Adverse Possession

Protecting your investment starts with awareness. Here’s how:
Mark boundaries clearly.
Use fencing, “No Trespassing” signs, or natural markers.
Visit and inspect your properties regularly.
Especially for vacant land or long-term rentals.
Address encroachments immediately.
A polite conversation or formal letter can prevent future disputes.
Put permission in writing.
If you allow someone to use part of your land (like for a garden or access path), document it. Written consent cancels any potential claim.
Order a professional survey before buying.
It’s the easiest way to catch existing issues and avoid costly surprises later.

Why It Matters for Investors

For real estate investors, adverse possession can quietly chip away at your assets.
Losing even a small portion of your property can affect resale value, appraisals, and financing options.

In rural or undeveloped areas, where land often goes unmonitored, these cases are more common than you’d think.

Adverse possession might sound like an obscure legal technicality — but it’s one every smart investor should understand.

If you own property, protect it.
Visit it, mark it, and manage it like the valuable investment it is.