What Have Squatters’ Rights Got to Do with My Inheritance?

In New South Wales, under the Real Property Act 1900, it is possible to obtain ownership of a property if a person has remained in the property for a minimum of 12 years. In that time, they must have had factual possession and have demonstrated a clear intention to possess the property. Factual possession means physical control over a property. This can include the changing of locks, repairing the property and paying bills.

This arcane legal principle is known as adverse possession (or, as it is sometimes known, squatters’ rights). If the owner of a property does not evict squatters from their property within a certain time or interrupt their use of it, legal ownership of the land or property can be lost to the squatter.

Adverse possession claims are rare but can involve substantial sums. The recent decision in McFarland v Gertos (2018) NSWSC 1629 highlighted how property, in this case valued at $1.6m, can be lost to such claims when, for example, it has been overlooked by the executors of a deceased’s estate.

How does this affect your inheritance?

If there is a property that has passed through the generations, there may well be a very real impact on beneficiaries, as this case illustrates.

A Will is an essential document to grant and point to the legal entitlement to a property that you may own.

Contact our Wills and Estate Lawyers in Sydney, NSW

Szabo & Associates, Solicitors, can provide expert advice on all matters regarding property disputes and estate planning. Contact us on (02) 9158 6026 or complete our online contact form.