SB 344

Under this bill, a person may only obtain title to real property by adverse

possession if: 1) a court is unable to identify or locate the record title owner or the

record title owner's successor in interest; or 2) a principal building has been located

on the real property for at least the required number of years of uninterrupted

adverse possession.

Under current law, adverse possession is a method by which a person may

obtain title to real property by possessing property that belongs to another. Under

current law, to adversely possess land, a person must take actual, physical

possession of real property in a manner that is hostile, open and notorious, and

exclusive to the record title holder. To obtain title by adverse possession, a person

must continuously adversely possess property for at least 20 years. However, shorter

periods of ten years and seven years apply in certain circumstances, such as

possession based on a recorded document and the payment of real estate taxes. There

is also an additional requirement if the real property being adversely possessed

belongs to the state or a political subdivision, in which case the adverse possession

must also be based upon a continuously maintained fence line that has been

mutually agreed upon by the current landowners.

Under the bill, a person may only obtain title to real property by adverse

possession if the required period of continuous adverse possession, whether 20, 10,

or 7 years, occurred before the effective date of the bill. However, the bill provides

two exceptions to this limitation of adverse possession. The first exception applies

if a court is unable to identify or locate the record title owner or the record title

owner's successor in interest to real estate that has been adversely possessed. The

second exception applies if a principal building, or any part of a principal building,

has been located on the real estate for the required period of adverse possession (20,

10, or 7 years). If a person establishes title under this second exception, the bill

requires the person to pay to the previous title holder the fair market value of the real

estate that is adversely possessed, the fair market value of any diminution in value

to the title holder's remaining real estate that is attributable to the adverse

possession, and reimbursement for real estate taxes paid by the previous title holder

during the required period of adverse possession.