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If you squat in a vacant property, does the law give you the house for free? Well, sort of

<p><em><a href="https://theconversation.com/profiles/cathy-sherry-466">Cathy Sherry</a>, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a></em></p> <p>Nothing excites law students like the idea of a free house. Or alternatively, enrages them. It depends on their politics. As a result, academics condemned to teaching property law find it hard to resist the “<a href="https://classic.austlii.edu.au/au/journals/MelbULawRw/2011/28.html">doctrine of adverse possession</a>”. The fact that a person can change the locks on someone else’s house, wait 12 years, and claim it as their own, makes students light up in a way that the Strata Schemes Management Act never will.</p> <p>The idea of “squatters’ rights” has received a lot of media attention recently amid the grim reality of the Australian housing market. It fuels commentators such as Jordan van den Berg, who <a href="https://www.instagram.com/purplepingers/">critiques bad landlords</a> on social media. Casting back to his days as a law student, <a href="https://www.sbs.com.au/news/the-feed/article/jordan-was-fed-up-with-australias-empty-houses-his-proposal-has-led-to-death-threats/stx6rv6fl">he’s promoting</a> the doctrine of adverse possession as a way of making use of vacant properties.</p> <p>As interesting as the doctrine is, it has little relevance in modern Australia. While it is necessary to limit the time someone has to bring legal proceedings to recover land – typically 12 or 15 years, depending on which state you’re in – most people don’t need that long to notice someone else is living in their house. If a family member is occupying a home that someone else has inherited or a tenant refuses to vacate at the end of a lease, owners tend to bring actions to recover their land pronto.</p> <p>So where did this doctrine come from, and what has it meant in practice?</p> <h2>Free house fetching millions</h2> <p>In unusual circumstances, people can lose track of their own land.</p> <p>Just before the second world war, Henry Downie moved out of his house in the Sydney suburb of Ashbury. Downie died a decade later, but his will was never administered. At the time of his death, a Mrs Grimes rented the house and did so for a further 50 years. Downie’s next of kin did not realise they had inherited the house or that they were Grimes’s landlord.</p> <p>Grimes died in 1998 and Bill Gertos, a property developer, saw the house was vacant. He changed the locks, did some repairs, then leased the house and paid the rates for the next 17 years. He then made an application under <a href="https://classic.austlii.edu.au/au/legis/nsw/consol_act/rpa1900178/s45d.html">NSW property laws</a> to become the registered proprietor. At this point, Downie’s next of kin became aware they may have been entitled to the property and disputed Gertos’s claim.</p> <p>The <a href="https://www8.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2018/1629.html">court held</a> Gertos had been “in possession” of the property since the late 1990s. The next of kin had a legal right to eject him, but they had failed to do so within the statutory time limit of 12 years. Gertos had the best claim to the house. He <a href="https://www.domain.com.au/6-malleny-street-ashbury-nsw-2193-2015821514">promptly sold it</a> for A$1.4 million.</p> <p>Outrageous as this may seem, the law encourages caring for land. If you fail to take responsibility for your land, and someone else does, you can lose it.</p> <h2>An old English tradition</h2> <p>Gertos’s jackpot was unusual, and adverse possession has always been more relevant in a country like England.</p> <p>First, for much of English history, many people did not have documentary title (deeds) to their land. People were illiterate, parchment was expensive, and documents could disappear in a puff of smoke in a house fire. The law often had to rely on people’s physical possession of land as proof of ownership.</p> <p>Second, as a result of feudalism, vast swathes of England were owned by the aristocracy. They and their 20th-century successors in title, often local councils, had a habit of forgetting they owned five suburbs in London.</p> <p>In the post second world war housing crisis, thousands of families, and later young people and students, <a href="https://www.bbc.co.uk/sounds/play/b017cfv4">squatted in vacant houses</a> owned by public and private landlords who lacked the means or motivation to maintain them.</p> <h2>A sign of the times</h2> <p>In contrast, in Australia, for most of our settler history, governments of all political persuasions actively prevented the emergence of a landed class.</p> <p>But now, courtesy of tax policies that <a href="https://www.quarterlyessay.com.au/essay/2023/11/the-great-divide">encourage investment</a> in residential real estate, we have a landlord class of Baby Boomer and Gen X investors. That has caused housing market stress as younger people cannot make the natural transition from being renters to homeowners. They are outbid by older, wealthier buyers whose tax benefits from negative gearing increase with every dollar they borrow to buy an investment property.</p> <p>Money flowing into the market then means that landlords’ greatest benefit is capital gain rather than income, and thanks to John Howard, investors pay <a href="https://theconversation.com/stranger-than-fiction-who-labors-capital-gains-tax-changes-will-really-hurt-109657">no tax</a> on half of that gain.</p> <p>Finally, an almost exclusive reliance by government on the <a href="https://australiainstitute.org.au/post/for-more-affordable-housing-we-need-more-public-housing/">private sector</a> to provide new homes – which it will only do if it is making a profit – has left many people in deep housing stress.</p> <p>While squatters in Australia are likely to find themselves swiftly subject to court orders for ejection, van den Berg’s rallying cry indicates just how inequitable the housing market has become. Baby Boomers and Gen X should be on notice – young people want their housing back. <!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/227556/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><a href="https://theconversation.com/profiles/cathy-sherry-466"><em>Cathy Sherry</em></a><em>, Professor in Law, <a href="https://theconversation.com/institutions/macquarie-university-1174">Macquarie University</a></em></p> <p><em>Image credits: Shutterstock</em></p> <p><em>This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/if-you-squat-in-a-vacant-property-does-the-law-give-you-the-house-for-free-well-sort-of-227556">original article</a>.</em></p>

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Fed up neighbours band together to boot out squatters

<p>A group of resourceful residents living in a cul-de-sac on the New South Wales Central Coast have banded together to kick out a mob of squatters who had been wreaking havoc on and in the vacated home of a disabled man.</p> <p>Walls had been destroyed, a car had been set alight – and the community had finally said they'd had enough.</p> <p>"For the last several months we've had squatters living in our cul-de-sac running a 24-hour a day, drive-through drug den," local resident Christy told A Current Affair.</p> <p>Christy claimed squatters and drug users have been a problem next door for years.</p> <p>"Lots of fighting, brawling, threats to kill each other, to shoot each other," she said.</p> <p>"(They say), 'Bitch better have my money', you know, constantly."</p> <p>Christy then told the programme that things had ramped up recently, and it all culminated in the lighting of a dangerous car fire.</p> <p>"The flames were like two storeys tall. My whole house reeks of burned tyres and we've all had enough. We all have little girls ... and we can't let our kids out," Christy said.</p> <p>"My partner woke me up in the morning (and said), 'Oh my god, there's a car fire' so we ran out and looked out the window and yeah, that was too far," another neighbour, Dean Rainback, said.</p> <p>Rainback said the fire was the final straw for him and his young family.</p> <p>"There's trees over there where the car is and that house right next door could have caught fire," he said.</p> <p>"I'm from Texas, we don't put up with this kind of crap," Christy said. "So we decided we would take things into our own hands and get them out ourselves."</p> <p>Christy said she gave her unwanted neighbours "a verbal warning" to let them know the "jig is up, we've had enough".</p> <p>"I also shouted it in the house - 'Tomorrow's the day. It's over'," Christy said.</p> <p>True to her word, Christy and the other neighbours confronted the squatters and kicked them out!</p> <p>The group of frustrated neighbours then surveyed the damage and were shocked by what they saw.</p> <p>After removing all the junk, they boarded up the house, so no one could get back inside.</p> <p>The unit belongs to a disabled man named Terry who is now living with his mother after disability support workers who were paid to care for him failed to do so.</p> <p>"I think that is a disgrace, that it has been left to neighbours to do this," she said.</p> <p>The neighbours have now organised a council pick-up to get rid of the squatters' mess.</p> <p><em>Images: A Current Affair</em></p>

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Million-dollar home sold with squatter living in the basement

<p dir="ltr">A house in the US state of Virginia has sold for way above the asking price, despite coming with a stranger living in the basement. </p> <p dir="ltr">According to public records, the five-bedroom, four-bathroom house sold for $A1.1m ($US805,000) to an unnamed buyer on April 15th. </p> <p dir="ltr">The <a href="https://www.zillow.com/homedetails/3709-Prado-Pl-Fairfax-VA-22031/51836844_zpid/">online listing</a> quickly went viral, after it noted that putting an offer in on the home required  “an acknowledgement that home will convey with a person(s) living in lower level with no lease in place.”</p> <p dir="ltr">“NO ACCESS to see lower level,” the listing added.</p> <p dir="ltr">Just days after the home was listed, an Instagram account called Zillow Gone Wild posted about the bizarre listing, noting that it came with “a specific clause in the purchase price”. </p> <p dir="ltr">The post racked up over 35,000 likes and comments from users speculating about the identity of the basement tenant and poking fun at the unusual circumstances of the sale.</p> <p dir="ltr">“800k for 5 bd, 4 ba and your own serial killer,” a user commented.</p> <p dir="ltr">“Is the basement haunted? Feels like the basement is haunted,” another wrote.</p> <p dir="ltr">Before the sale closed, the listing agent told the <a href="https://nypost.com/2022/04/14/virginia-man-selling-home-after-squatter-refuses-to-leave/">New York Post</a> that the seller of the home was an elderly man who was sick in the hospital and had offered the basement dweller a place to stay three years ago after she cleaned his home and “convinced him that she needed a place to stay”.</p> <p dir="ltr">“So he offered her the basement, but then she never left. And she does not pay rent,” Rodgers-Rickert added.</p> <p dir="ltr">The agent told the publication that the man’s family was hoping to sell the home before he died because he didn’t have a will and they didn’t have the money to hire a lawyer to work on the eviction of the “tenant”.</p> <p dir="ltr">Rodgers-Rickert declined to comment to NBC News on the circumstances of the seller or the basement dweller following the sale of the house to a new owner. </p> <p dir="ltr"><em>Image credits: Zillow</em></p>

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