Man gets 300,000 home for 16 bucks

[Grimpala]

He's basically squatting for 16 bucks. Sooner or later he's going to have to pay up. I'd put a small wager saying he can't even afford electricity, HOA fees and so forth. Plus, he'll have to make it through the court system - so how cheap is he really getting it?

I think it's a neat fairy tale story that'll result in a trashed/defunct house, with lower surrounding property values and a "homeowner" I would not trust one single bit.

the owner of that mortgage isn't going to just let it go...even though the mortgage company is out of business, somebody owns that mortgage. it wouldv'e been sold in bankruptcy, etc.

This, he will never make it far enough to completely own the house. But, good for him for trying to get one over on the banks.

[STANGGT40]

the owner of that mortgage isn't going to just let it go...even though the mortgage company is out of business, somebody owns that mortgage. it wouldv'e been sold in bankruptcy, etc.

[ceyko]

He's basically squatting for 16 bucks. Sooner or later he's going to have to pay up. I'd put a small wager saying he can't even afford electricity, HOA fees and so forth. Plus, he'll have to make it through the court system - so how cheap is he really getting it?

I think it's a neat fairy tale story that'll result in a trashed/defunct house, with lower surrounding property values and a "homeowner" I would not trust one single bit.

[Silverback]

ummm he spent his last 16 dollars on getting the form legalized...... you seriously think this guy is going to upkeep the house???

go hang out with DTSMotorsports...

But to answer the OP's question. I guess he can try, but if there is an outstanding balance, which there probably is on the utilities from the previous resident, he'd have to clear those up.

[Randy]

What is to stop the guy from getting the power and water turned back on? I believe that it is a good thing that this man has decided to move into an abandoned property. It keeps it from getting too run down and puts it to good use.

ummm he spent his last 16 dollars on getting the form legalized...... you seriously think this guy is going to upkeep the house???

[svauto-erotic855]

What is to stop the guy from getting the power and water turned back on? I believe that it is a good thing that this man has decided to move into an abandoned property. It keeps it from getting too run down and puts it to good use.

[Grimpala]

The neighbors should just change the locks and annex it to their property. Afterall, if you can just take what's not yours, what is to stop them?

He has put up no trespassing signs per the law.

That guy needs to be removed from the property. Those of you who support him deserve something like that to happen to you.

Fuck you, you jelous you didn't think of it first? Seems like you're just pissed because a private citizen is making the law work for them instead of the state using it against them. Nothing he has done there is illegal, not very scrupulous, but not illegal.

Would you still feel the same if it was a corporation doing it? I don't know your race, but how about if it was a white guy? Or a mother of three that needed a home?

If he leaves the house (to go to the store, let's say), could someone else move in and now it's their house?

See above.

[exlude]

Seriously? Weren't you bragging in Canada about driving around with a fake dealer paper plate you made off your computer? You dumb motherfucker.

Don't forget the fake insurance cards.

[Silverback]

more

As part of this process, it is advisable to research the title to the subject property to determine if there are known owners who can be located. Title companies will issue a relatively inexpensive title report, or an online service such as TitleSearch.com can be used. If there are record owners that can be located, one might be better advised to contact them and attempt to make a deal that preserves the existing chain of title.
Adverse Possession in the Case of Fellow Heirs

It makes for an interesting case when an adverse possessor intends to stake his claim against family members in an heirship situation – for example, a son wants to claim the family farm after his parents died without wills and his siblings have long since disappeared. In such event, it is possible to use an Affidavit of Adverse Possession in conjunction with an Affidavit of Heirship pursuant to Sec. 52A of the Probate Code (see our companion article Affidavits of Heirship in Texas).

Newly added Civil Practice & Remedies Code Sec. 16.0265 addresses the situation of adverse possession against a “cotenant heir.” Special requirements must be met for “a continuous, uninterrupted 10-year period immediately preceding” filing an Affidavit of Adverse Possession. There is, in effect, a higher standard for obtaining title by adverse possession against one’s relatives than against the public at large. After the affidavit is filed, contesting heirs have five years to file a controverting affidavit or judgment; otherwise, the adverse possessor gets sole title.
Creating a New Chain of Title

As an additional “creative” step, the Affidavit of Adverse Possession can be followed by a deed to the subject property out of the adverse possessor (e.g., to a third-party trustee) and then another deed back from the trustee into the name of the adverse possessor, taking care to obtain a proper legal description and/or survey of the adversely-held tract. The objective is to give the adverse possessor an actual deed in his own name – i.e., to create a new chain of title. These deeds should also contain specific and appropriate language, with the ultimate goal being to make title in the adverse possessor pass muster with a title company.

Note that this approach is designed to allow the adverse possessor to obtain credibility of title over a period of time. Using this method does not usually produce instant results and therefore is not suited for those who want to acquire property and then flip it.

Do-it-yourselfers beware. These transactions should be handled only by a capable real estate attorney in order to avoid doing more damage than benefit when it comes to the adverse possession claim.
Remedies for the Record Owner

What should an owner do who is put on notice that someone else is making a claim of adverse possession? There are a couple of options, but it is important to note that doing nothing is not one of them. Doing nothing makes it likely that the statute of limitations will eventually run and the claimant will succeed in acquiring legal title. One possibility is to file an affidavit in the real property records expressly rejecting the adverse possessor’s claim; in certain circumstances this may be enough to end the matter. Otherwise, the only safe course of action is for the owner to seek a declaratory judgment from a district court.
DISCLAIMER

Information in this article is proved for general informational and educational purposes only and is not offered as legal advice upon which anyone may rely. The law changes. Legal counsel relating to your individual needs and circumstances is advisable before taking any action that has legal consequences. Consult your tax advisor as well. This firm does not represent you unless and until it is retained and agrees in writing to do so.

David J. Willis is board certified in both residential and commercial real estate law by the Texas Board of Legal Specialization. More information is available at his web site, http://www.LoneStarLandLaw.com. Copyright ©2011 by David J. Willis. All rights reserved worldwide.

[Silverback]

By the way, according to the following, he has to stay there 10 years since he has no deed, or form of title in his name.

Adverse Possession in Texas

by David J. Willis J.D., LL.M.

Introduction

Adverse possession refers to the circumstances under which one may lawfully lay claim to ownership of property not originally one’s own. The statute governing the rules of adverse possession is Texas Civil Practices & Remedies Code Sec.16.021 et seq. The statute defines adverse possession as “an actual and visible appropriation of real property, commenced and continued under a claim of right that is inconsistent with and is hostile to the claim of another person.” Case law adds that it must be true that the possessor of the property actually does possess it (the belief of entitlement to possess is not enough), possesses it continuously (sporadic possession is not sufficient), and that he peaceably and intentionally asserts a claim of right to the exclusion of all others. It is not enough to be merely caring for the property temporarily, or even paying the taxes on it, until the owner reappears. Possession shared with the original owner is not enough. Further, the location of the tract of land must be determinable with reasonably certainty. It must have boundaries.

The rules are specific for a reason. As the Texas Supreme Court stated, the adverse possession “doctrine itself is a harsh one, taking real estate from a record owner without express consent or compensation.” Tran v. Macha, 213 W.W.3d 913,914 (Tex. 2006). The statute sets forth rules and conditions under which the doctrine applies. These must be conclusively met. Close enough is not good enough. In the event adverse possession is litigated, all of these issues become questions of fact to be decided by a court of law.

The statute is structured in such a way as to require an affirmative act by the original owner to reclaim the property within certain periods of time, referred to as statutes of limitation. If he is prevented from doing so by physically recapturing possession, then he must file a trespass to try title suit in order to reclaim possession and establish legal ownership. If the original owner does not take either action, then his claim is barred, and the adverse possessor prevails. Note that the doctrine of adverse possession does not apply to public lands or against a government entity.
The Various Statutes of Limitation

The law of adverse possession is based on notice. The legitimacy of an adverse possession claim is established when circumstances are such that it is visible to others – i.e., others are or should be on notice - that the possessor is asserting a claim of right to the property which is actual, open, notorious, exclusive, hostile, continuous, and uninterrupted for the applicable statutory period – referred to in the CPRC as statutes of limitation. Note that the burden here is on the owner. Once an owner discovers the presence of a potential adverse possessor or is otherwise put on notice of an adverse possession claim, he must act to defeat the adverse possessor’s claim within the period prescribed by one of three statutes of limitation:

Sec. 16.024 - The Three-Year Statute
A person [i.e., the original owner] must bring suit to recover real property held by another in peaceable and adverse possession under title or color title not later than three years after the day the cause of action accrues.

Under this section, the possessor must have title (i.e., a deed as part of a regular chain of title) or “color of title,” which refers to a claim of title that has some reasonable basis but for some legitimate reason does not fit within the usual chain of title. So, the possessor must be able to produce some conveyance/title paperwork to support his claim if he is to assert adverse possession.

Sec. 16.025 - The Five-Year Statute
(a) A person [i.e., the original owner] must bring suit not later than five years after the day the cause of action accrues to recover real property held in peaceable and adverse possession by another who:

(1) cultivates, uses, or enjoys the property;
(2) pays applicable taxes on the property; and
(3) claims the property under a duly registered deed.

(b) This section does not apply to a claim based on a forged deed or a deed executed under a forged power of attorney.

Under this five-year statute, some sort of deed of record is still required.

Sec. 16.026 - The Ten-Year Statute (Nicknamed the “Bare Possession Statute”)
(a) A person must bring suit not later than 10 years after the day the cause of action accrues to recover real property held in peaceable and adverse possession by another who cultivates, uses, or enjoys the property.

(b) Without a title instrument, peaceable and adverse possession is limited in this section to 160 acres, including improvements, unless the number of acres actually enclosed exceeds 160. If the number of enclosed acres exceeds 160 acres, peaceable and adverse possession extends to the real property actually enclosed.

(c) Peaceable possession of real property held under a duly registered deed or other memorandum of title that fixes the boundaries of the possessor’s claim extends to the boundaries specified in the instrument.

The ten-year statute is the “catch all.” A deed or other memorandum of title is not necessary so long as the elements of adverse possession are met – however, such documentation may be useful to establish the boundaries of the claimed tract. Otherwise the key to determining boundaries is what area is fenced in as a “designed enclosure” - not just a “casual fence.” Rhodes v. Cahill, 802 S.W.2d 643,646 (Tex. 1990).

Two other sections, Sec.16.027 and Sec.16.028, are less commonly used. The first provides a 25 year statute of limitation “regardless of whether the person is or has been under a legal disability.” The second allows a 25 year statute based on a title instrument, even if that instrument is void on its face or in fact.

Statutes of limitation do not include any periods of disability on the part of the original owner (e.g., he was under 18 years old, of unsound mind, or serving in the armed forces in time of war).

Statutes of limitation may be “tacked” or combined by various successive possessor of the property so long as there exists “privity of estate” (a direct legal connection) between these persons.

What sort of action should the owner take to defeat a claim of adverse possession? The most obvious course of action is to evict the interloper if that can be accomplished peaceably. If not, or if the adverse claimant asserts a title claim, then the owner’s remedy is litigation – what is called a “trespass to try title” action requesting a declaratory judgment.
Litigation by the Adverse Possessor

Alternatively, an adverse possessor may be the one to file suit to establish his claim. To do so, he must prove (a) a visible appropriation and possession of the land, sufficient to give notice to the record title holder that is (2) peaceable, (3) under a claim of right hostile to the title holder’s claim, and (4) that continues for the duration specified in the applicable statute. What is a “visible appropriation?” The possessor must “visibly appropriate the property as to give notice to any other person that they claim a right to the property.” Perkins v. McGehee, 133 S.W.3d 291, 292 (Tex.App. - Forth Worth 2004, no pet.).

Finally, Sec. 16.034 provides that the prevailing in a suit for possession of real property may receive an award of costs and reasonable attorney’s fees.
Creative Approaches: The Affidavit of Adverse Possession

What should an adverse possessor do who believes that one of the above statutes of limitation allows him to claim ownership? The first and best option is to file suit for a declaratory judgment in district court. However, if a lawsuit is not a feasible or affordable option, it may be useful to consider filing an affidavit (an “Affidavit of Adverse Possession”) in the real property records which contains specific wording that asserts and justifies a claim of adverse possession. At the very least, such an affidavit acts as a marker in time to begin putting all others on notice of an adverse possession claim, thereby providing a fixed point for commencement of the applicable statute of limitations.

[roliath]

Not sure if it is the same there, but code enforcement here can fine both the owner and the current resident.

Stevo

this

[red95gts]

If he leaves the house (to go to the store, let's say), could someone else move in and now it's their house?

[stevo]

he doesn't own it until the 3 years is up. So code enforcement can't do much to him directly at this point.

Not sure if it is the same there, but code enforcement here can fine both the owner and the current resident.

Stevo

[Silverback]

just make it hard for him the legal way, call code compliance for every fucking infraction every week.

he doesn't own it until the 3 years is up. So code enforcement can't do much to him directly at this point.

[Silverback]

That guy needs to be removed from the property. Those of you who support him deserve something like that to happen to you.

to happen to who?

The bank?

He's taking advantage of a law that's still on the books. More power to him, honestly if anything the law will get changed, someone will by the note from the bank, and then they will have him removed from the property.