Several years ago I wrote a post about a proposed bill affecting Landlords.
The Bill affected the time frame which a property owner could bring an action to recover property; most importantly, it affected the statute of limitations for a claim of “adverse possession” or “squatters rights” by a holdover tenant.
Here’s the scenario:
Investor purchases at foreclosure. Investor finds out the Property is being occupied. Redemption period expires. Investor files suit to gain possession of the Property. “occupant” counter-sues – and claims “I own this Property by adverse possession”.
The prior bill provided that the statute of limitations period does not apply to a person if an adverse party is asserting a claim to the property based upon adverse possession.
That bill went nowhere.
House Bill 5546 was introduced a few weeks ago and referred to the judiciary committee.
The Bill would extend the period which a “squatter” or “holdover tenant” would need to prove title by adverse possession from 15 years to 30 years.
This makes sense for Landlords: what if you purchase real estate at foreclosure sale, attempt to remove a tenant and find out they have a claim to adverse possession?
The statute would make it harder for a hold-over tenant to prove they had a lawful right to the Property.
e-mail: Jeshua@dwlawpc.com
Twitter: @JeshuaTLauka
Purpose Driven General Counsel 