Table of Contents
Adverse possession(Adverse Possession) isCommon law systemA legal principle in the law that allows a person to acquire ownership of the real property of another (such as land or a building) through the long, open, continuous, and unauthorized occupation of that property, subject to certain conditions. The purpose of this system is to promote efficient land use, resolve property rights disputes, and prevent land from being idle for a long time.
If A occupies B's abandoned farmland for a long period of time, planting crops and fencing it beyond the statutory period, and B does not take legal action, A may apply to the court for adverse possession and obtain ownership of the land.
Establishment conditions (general common law requirements):
- Actual possession(Actual Possession)
The possessor needs to actually use the land, such as building fences, cultivating it, or living on it, rather than just claiming it verbally. - Open and non-hidden(Open and Notorious)
The occupation must be visible and reasonably detectable to the previous owner (such as openly making improvements to the property). - Continuity（Continuous）
Occupancy must be uninterrupted, and the length of this period varies from region to region (10-20 years is common). If the right is abandoned midway or the original owner raises an objection, the statute of limitations will be interrupted. - Hostile Possession（Hostile/Adverse）
Occupancy without the permission of the original owner (such as no lease or authorization) and excluding others from use. - Exclusivity（Exclusive）
The occupant must use it alone and cannot share it with the original owner or others.
Examples of regional differences:
- Hongkong：Occupancy must continue 12 years(Section 7 of the Limitation Ordinance), and does not apply to occupation of government land.
- Taiwan: A similar system is "prescription acquisition", which requires peaceful, open, and continuous occupation of other people's unregistered land. 10 years(Goodwill) or 20 years(not in good faith) and apply to the land administration authorities for ownership (Articles 769-770 of the Civil Code).
- USA：The regulations vary from state to state, the most common ones are 5-20 years, and some states require occupants to pay property taxes.
Disputes and limitations:
- Government land: Adverse possession is usually not applicable.
- Original owner rights: If the owner is a minor or an incompetent person, the statute of limitations may be extended.
- Good intentions or not: Some jurisdictions require the possessor to be in "good faith" (mistakenly believing that he or she has ownership), but many common law jurisdictions do not have this requirement.
The relationship between adverse possession and “development”
- Low-cost asset acquisition
Successfully obtaining property ownership through adverse possession can theoretically result in the acquisition of a high-value asset at a very low cost (only requiring a few years of occupation), which can bring huge economic benefits, especially in areas with high housing prices such as Hong Kong. - Legal risks and challenges
- Difficulty in proving: Evidence of continuous occupation for 12 years (such as water and electricity bills, neighbor testimony, etc.) is required. In practice, this is prone to failure due to insufficient evidence.
- Owners fight back: If the original owner takes legal action within the limitation period (such as issuing a warning letter), the limitation period is interrupted and the occupant needs to recalculate the number of years.
- Moral controversy: Intentionally misappropriating other people’s property may lead to social condemnation and even violate the Theft Ordinance.
- Limited actual cases
Most of Hong Kong’s past successful cases involved rural land or properties where the owners had been missing for a long time. The success rate in urban areas is extremely low due to strict supervision by owners. For example:- 2017 Cases: A man claimed to have occupied a village house in Yuen Long for more than 20 years but lost the case as he could not prove "exclusive use".
- 2020 Case Studies：A family successfully took adverse possession of agricultural land in the New Territories because the original owner emigrated and did not assert his rights for many years.
Risks and recommendations
- Legal advice first: The adverse possession procedure is complicated and requires the assistance of a lawyer to evaluate the evidence and legal feasibility.
- Ethical considerations: Deliberately exploiting this system for profit may involve legal gray areas and the risks need to be weighed.
- Alternative Pathways: Rather than taking risks to seize wealth, it is better to accumulate wealth steadily through legal investments (such as real estate and financial markets).
Precautions:
The specific requirements and procedures for adverse possession vary from jurisdiction to jurisdiction, and rights must be asserted based on local laws and evidence (such as cadastral information and neighbor testimony). Legal consultation is recommended to assess the feasibility of the individual case.
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