Deceased Home Owner Property with Squatter living in it

Diamond Bar, CA · Member since 2013 · 110 posts · 34 votes

Need some input from my fellow BP friends. In my old neighborhood, I was told that the original owner of a small house passed away many years ago. The person has no living relative per neighbor, since they were close friends. So the house was abandon for just less than a year and then a squatter moved in. How do we know it was a squatter? Because he told the neighbor straight forward. I did run a title search and did find that the deceased owner is still on the title. Question, is how can one move in legally and take over the property and evict the squatter. Note, the property tax has been paid by the squatter which is $400 a year.

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Rick H.

Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes

12y

Nixon - I live in your community and have plenty of real experience (successes and failures) with adverse possession deals. That is probably what the squatter is attempting to do.

I've actually tracked deals in Chino Hills, which not common, however vacant abandoned properties occur everywhere; even in upscale canyon area where I live. Even beach cities and Beverly Hills!

Since I've been involved in literally thousands of probate (and pre-probate) deals over the years, no one dies without heirs. Hard to believe, but it's true. I'm involved in two related estates now (as admin of both) whereby mother and daughter died without close relatives. They did leave some distant "shirt-tail" cousins, whom I found and signed up.

Hence, I've got a deal and superior standing to the squatter that thought he was so smart. Sold that property and now dealing with next estate (plus many others).

The only ones I haven't figured out how to research are FBI informants who have undergone identity changes. But I haven't given up, either.

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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
You can't just "take over" the property. You'd need to find if there is a living heir, as per CA laws. That's the person(s) to start with. It would have to go through probate so title ends up in someone's hands with the authority to sell, or possibly those rights assigned to you. If there really is no living heir, then whatever the laws there are will dictate. I have no clue as to those.
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Rick H.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
12y
Nixon - I live in your community and have plenty of real experience (successes and failures) with adverse possession deals. That is probably what the squatter is attempting to do.
I've actually tracked deals in Chino Hills, which not common, however vacant abandoned properties occur everywhere; even in upscale canyon area where I live. Even beach cities and Beverly Hills!
Since I've been involved in literally thousands of probate (and pre-probate) deals over the years, no one dies without heirs. Hard to believe, but it's true. I'm involved in two related estates now (as admin of both) whereby mother and daughter died without close relatives. They did leave some distant "shirt-tail" cousins, whom I found and signed up.
Hence, I've got a deal and superior standing to the squatter that thought he was so smart. Sold that property and now dealing with next estate (plus many others).
The only ones I haven't figured out how to research are FBI informants who have undergone identity changes. But I haven't given up, either.
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Derek W.
Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
12y
Like @Rick H. is saying, yes you can just "take over a property." It's called adverse possession. Every state in the nation has adverse possession laws that allow for hostile take over by squatter if you follow the right steps. But Rick, once again, has brilliant advice which is to work harder than the squatter to find a distant heir and get a higher level of claim over the property so you can evict them. You may have to hire a private detective to search them out, but if the property has lots of equity it may be well worth it.
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Nixon Vayupak
OP
Diamond Bar, CA · Member since 2013 · 110 posts · 34 votes
12y
@Rick H. and @Derek W. thanks for providing me your input. I was searching rules in California in regards to "Adverse Possession" and can either you confirm or disagree with this. In California if a squatter stays and makes property tax payments on the house for at least 5 years he/she can obtain the property?
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Derek W.
Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
12y
Basically, yes. There are some other rules to follow, but that is it in a nut shell.
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Matt Adamson
Contractor · Lynnwood, WA · Member since 2014 · 11 posts · 5 votes
12y
Originally posted by @Nixon Vayupak:

@Rick H. and @Derek W. thanks for providing me your input. I was searching rules in California in regards to "Adverse Possession" and can either you confirm or disagree with this. In California if a squatter stays and makes property tax payments on the house for at least 5 years he/she can obtain the property?
This is very interesting!!!
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Account Closed
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Originally posted by @Wayne Brooks:

You can't just "take over" the property. You'd need to find if there is a living heir, as per CA laws. That's the person(s) to start with. It would have to go through probate so title ends up in someone's hands with the authority to sell, or possibly those rights assigned to you. If there really is no living heir, then whatever the laws there are will dictate. I have no clue as to those.
There is no such thing as dying with no living heirs. Decedents who die intestate always have heirs. How many degrees of separation is the the question. That, and finding them. :)
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Account Closed
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Originally posted by @Nixon Vayupak:

@Rick H. and @Derek W. thanks for providing me your input. I was searching rules in California in regards to "Adverse Possession" and can either you confirm or disagree with this. In California if a squatter stays and makes property tax payments on the house for at least 5 years he/she can obtain the property?
The short answer is yes. The long answer: not for the faint of heart or the risk adverse. Tons 'o variables, tons of potential issues and challenges. But gaining title via adverse possession in CA is real.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
@Rick H.
& @K. Marie are correct. At least in CA, adverse possession is only 5 years. here in PA it is 21 years, which makes it a very long term investment plan. There are rules for AP and you may be able to dispel the squatter. But the squatter has 2 things going for him/her in that they possess the property AND are paying the taxes. Often times a squatter screws up and doesn't pay the taxes which leaves a window open to dispelling the squatter.
A lot of the properties that I see squatted also have physical issues like deferred maintenance or even lack of utilities. One possible approach would be to report code violations that might force the local government to force the squatter out on health and safety grounds, which could break the AP.
Adverse possession in Texas is 25 years, Louisiana is 30 years while Costa Rica is 6 months.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
12y
Wow Costa Rica is 6 months??
I bet it's then scary to own vacation property there ( have no clue if you can own there or not).
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Rick H.
Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
12y
Nixon - PM me and I'll get you started in the right direction.
My method of study and education for such topics is to write a book, to be read by no one but me. I do this cause it requires me to research current law, review cases, and determine similarities and differences between situations that I'm familiar with.
Another reason is because there is no credible info on the topic, besides the father and son team who published a very inaccurate book that will surely get people sued, if it hasn't happened already. This convinced me that some people are willing to write and sell anything online whether accurate or not (like I should be surprised).
Having proven to myself that I can get AP cases approved by even tough judges now, I'm on to other projects and techniques.
And no, I have no plan to publish or share the AP book with others, however I do plan on discussing the topic when I launch my next Mastermind group later this year.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
@Joel Owens
Yes, American and other foreign nationals can own property in Costa Rica. It is a democratic country that has had the same government since the early 1900s.
Squatting is a problem there, sometimes people will live in cardboard shacks on vacant land, just to collect some money later by claiming Adverse Possession. Its common in development there for the developers to pay off multiple people who are all claiming Adverse Possession. Just another cost of doing business.
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David Mitchell
San Luis Obispo, CA · Member since 2012 · 94 posts · 23 votes
12y
here's a brief youtube video that lays out the basics of adverse possession: https://www.youtube.com/watch?v=I-dbLop1aag
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Darla Holtzclaw
NJ · Member since 2011 · 19 posts · 6 votes
11y
@Rick H. thanks for all the great information. I have viewed a few of your other posts, and I really appreciate your attitude about finding heirs and treating the deceased with respect. I wanted to ask if anyone has experience though with adverse possession in Texas, Austin to be exact.
I was talking with a gentleman who said he paid the back taxes (2600) on a property and was given a temporary deed, and the city let him use it to turn on utlities. He lived there until the owner showed up.
It made me think there may be a strategy there if the property isn't too derelict, to pay the tax bill, and lease the property for a period of time (with full disclosure of the situation), and hunt down heirs. Is this something people do?
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Account Closed
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
11y
I've never heard of a temporary deed and doubt there is such a thing. I'd confirm the details on that. Lots of people don't know correct terminology or understand details when it comes to RE. There may well be some kind of document regarding possession that was accepted by the utility company. Again, confirm the details.
If your strategy is to adverse possess you wouldn't hunt down the heirs. You would make sure that they aren't going to show up so that you can complete the possession period without interruption. Adversely possessing by renting the property is very risky. I've done it. You win some, you lose some.
If your strategy is to hunt down heirs of tax defaulted property in order to buy from them, you'll want to make sure there is value. It's not a good strategy for low valued property IMO. Finding heirs and working with them in order to gain title to real property is costly and time consuming. It involves supervision and involvement with probate courts. Never fun. Trust me on that.
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Darla Holtzclaw
NJ · Member since 2011 · 19 posts · 6 votes
11y
@Account Closed I agree that it would not be worth doing in many markets. However, in East Austin lots and tears downs are in the 150 to 200K range, retail at least. So tracking down heirs is interesting, but adverse possession, maybe not so much.
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Account Closed
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
11y
Originally posted by @Darla Holtzclaw:

@Account Closed I agree that it would not be worth doing in many markets. However, in East Austin lots and tears downs are in the 150 to 200K range, retail at least. So tracking down heirs is interesting, but adverse possession, maybe not so much.
In that market you have lots of competition (including me). The tear down/new construction thing in parts of Austin makes it less about the property condition and more about working with sellers. However, those neighborhoods have the same issues as my farms in Central CA.....Medicaid debt. You can hunt down the heirs but many properties have usually been abandoned or are going to tax sale for a reason. A property in the name of a decedent with past due taxes usually comes with complications. A good thing if you like complications. :)
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Darla Holtzclaw
NJ · Member since 2011 · 19 posts · 6 votes
11y
@Account Closed
Thanks for the feedback. I think the Medicaid Liens is definitely something I need to learn more about from seasoned professionals like yourself.
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Bobby Barraza
Real Estate Investor · Ridgecrest, CA · Member since 2016 · 5 posts · 0 votes
9y
What if your have the successor of the estate wanting to sell the property but the squatters cant be removed by the police because they were invited by the successor's sibling, which then turns this into a civil matter. My question is once you possess the deed can you simply have the squatters removed by the officials without this matter being tied up to long in court.
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Angela Humphrey
Member since 2018 · 1 post · 0 votes
8y
there are people living at a mans house in San Leon Tx who don't keep the property up. It looks like a junk yard what cant i do a neighbor do to stop this.
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