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Adverse Possession, Quiet Title Action, Color of Title | Real Estate Exam Prep - YouTube
Channel: The Real Estate Classroom
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hey everyone if we're meeting for the
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first time my name is paul vachesky and
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welcome to the real estate classroom
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youtube channel it's just a place that
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if you're studying for your real estate
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licensing exam i have videos
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that have all the answers to all the
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questions you could have on that exam
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in today's video i'm going to discuss
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three concepts that you have to know
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for that exam number one is adverse
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possession
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the second one is a a doctrine known as
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quiet
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title action and the third one is what
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we call color of
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title and all three uh kind of go hand
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in foot here so
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that's why i'm putting all three of
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these concepts concept into
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one video now some of you may know that
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i did a previous video on what we call
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involuntary alienation which adverse
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possession
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is a part of and if you have not watched
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that video i highly encourage you to
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take a look at it it's right up here in
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the upper right hand corner i shall
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leave
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a link for you now adverse possession
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is what we know as involuntary
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alienation it's a it's a key real estate
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term that you have to know as well but
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basically
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it means that un under certain
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circumstances
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an owner of a piece of property can lose
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their property against
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their will it's not like they're
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voluntarily
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selling the property as we would see
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with voluntary alienation this is where
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something happens an event happens
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something where that
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true owner loses their their ownership
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interest in that property
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there are four ways that uh we see
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involuntary alienation and number one is
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is cheat
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number two is eminent domain number
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three
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is foreclosure and then the fourth one
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is adverse possession now
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i have talked about each and every one
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of these in previous videos but in
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today's video
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i'm going to focus and go really deep
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into the concept of adverse possession
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now adverse possession starts out
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as an illegal and illegal act right so
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when we think of
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trespassing the first thing we think of
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is somebody
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goes on to someone else's piece of
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property
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without their permission and they are
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trespassing it is breaking the law
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trespassing is a crime
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but there is a point at which a
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trespasser
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becomes what we call an adverse
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possessor
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all right so they start out trespassing
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they're breaking the law they're known
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as a trespasser
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but because they have met certain legal
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elements they have
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gained certain rights to that property
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as an adverse possessor and that's what
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i want to discuss
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how does that adverse possessor make
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claim to title and there are five
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essential elements
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that that adverse possessor must
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establish for that for them to make
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that claim okay on the slide that you
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see on your screen i have outlined the
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five essential elements
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that an adverse possessor is going to
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have to establish and demonstrate in
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front of a court
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if they want to obtain title to the
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property under the doctrine of adverse
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possession number one
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there must be continuous possession
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for a specific statutory period of time
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and what i mean when i what i mean by
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continuous possession is i don't mean
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that they have to stay on that piece of
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property 24 hours a day seven days a
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week 365 days a year
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i mean they can go to the grocery store
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they can go on vacation and whatnot what
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i'm talking about here
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is they have continuously possessed the
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property
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for that state stipulated statutory
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period of time meaning they didn't
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uh stay on the property for a year then
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go to another state and live for a year
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and then come back that would be a break
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in that continuous possession
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now the statutory period of time that's
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required depends on the state and you
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don't have to know the specific
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period of time for your licensing and
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examine less
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it's going to be asked on your state
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portion of your exam but on the national
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side
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they will not ask you this you only have
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to know that it has to be continuous
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possession for a statutory period of
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time now interestingly enough in most
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states
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that statutory period of time is
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actually the statute of limitations to
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bring
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criminal charges against someone who is
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trespassing
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and that can be anywhere between 5 and
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25 years
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so not in every state but in most states
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so element number one is
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the adverse possessor must possess the
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property continuously for a statutory
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period of time
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central element number two it must be
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distinct
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sometimes referred to as the entry in
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the use of the property meaning
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the adverse possessor must physically
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enter the property physically enter the
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property and use it
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like the true owner would use
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and also use it in the way that the
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property was intended to be
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used and that's a very important
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distinction so
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for example if there is a absentee owner
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on a on a house on an acre of land that
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adverse possessor may move into the
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property
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and possess it and use it like the owned
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a true owner would if they lived in that
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house
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but let's say it's a unique property
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let's say that it's a hunting lodge
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above the arctic circle and you're only
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allowed to hunt above the arctic circle
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let's say in the month of july
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and so the adverse possessor goes up to
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that lodge
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above the arctic arctic circle and
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possesses it
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as it was intended to be used for the
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month of july
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that person may be able to make a
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legitimate claim saying that they have
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fulfilled
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the terms or the requirements under that
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second essential
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element number three actual use or what
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we call
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exclusive use that means that the
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adverse possessor
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is uh exclusively possessing and using
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that parcel of land they are not
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sharing the use or the possession with
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the true owner
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it's exclusive to the adverse possessor
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number four it has to be
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open and visible or sometimes we hear it
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as open and notorious
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the adverse possessor must be very
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open and transparent about their
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possession and use of the property
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they're not hiding anything
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in fact the neighbor should be able to
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view what's going on on that piece of
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property and
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have no reason to believe that the
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adverse possessor is not the true owner
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the adverse possessor is doing
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everything in acting like they are the
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true
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owner that's called giving constructive
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notice and they're actually giving
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constructive notice to the true owner
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that hey i'm not hiding
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anything i'm not trying to be so
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deceptive
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i'm here i've moved in i'm taking care
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of the lawn
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i'm uh planting flowers i put up a fence
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i'm doing maintenance to the uh to the
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to the house and the the buildings that
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are on it they are hiding nothing and
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they're doing it right in front
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of the true owner it's up to the true
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owner then
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to take action to remove the adverse
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possessor and if they don't
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then they can lose the property under
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adverse possession so that's the fourth
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essential element number five
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hostile their possession their
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use of the property has to be hostile or
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sometimes known as
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adverse meaning they are doing it
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without the permission
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of the true owner so they didn't ask the
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true owner if they could possess the
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property or if they could even use it
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they just did it
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and they didn't ask permission to do it
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those are the
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five essential elements that that
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adverse possessor
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must be able to prove uh that they have
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established when they go into court
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and try to get the ownership to that
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property
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okay the next phase in obtaining title
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under adverse possession
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is obtaining title itself and how do we
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do that well
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remember the first thing is the adverse
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possessor had to establish
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those five essential elements number two
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is once they've done that and
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remember including for that statutory
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period of time
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then the adverse possessor is going to
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bring what's called quiet title action
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it's a lawsuit in local court and this
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is interesting it's against
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everyone and anyone who may have a legal
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claim to the property
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including but not limited to the true
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owner
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it's called quiet title action that's a
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key real estate term that you have to
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know
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now what is the court going to look at
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in use to determine whether or not they
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should transfer title to the adverse
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possessor well they're looking for those
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five elements
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and they're looking for what's called
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title or color of title
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color of title is another key real
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estate term
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and it basically is the adverse
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possessor needs to demonstrate or give
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or did they give the appearance of
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having good invalid title when in fact
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they really
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didn't now how do you do that well the
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adverse possessor did things like maybe
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they paid the property taxes
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and they have those cancelled checks to
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prove that they paid the property tax
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because remember the county could care
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less who pays the taxes only
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that the taxes are paid and by the
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adverse possessor paying those taxes
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they
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are demonstrating color of title uh
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remember they may be mowing the lawn and
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putting up a fence and trimming the
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trees and
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and cleaning up after storms and talking
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to the neighbors and painting the
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house and the buildings that are on
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there and
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fixing the concrete in the driveway
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doing everything that a
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normal owner would do and i guess i
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always explain it to my students
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is if you have convinced your neighbor
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openly and notoriously where they had no
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idea that you were not the true owner of
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that property then you have demonstrated
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the color of title
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uh that's the best way to describe color
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of title
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now once the adverse possessor has
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demonstrated demonstrated all these
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things to a judge then the judge is
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going to decide whether or not
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they have met the standard to transfer
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title to the adverse possessor
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under the doctrine of adverse possession
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another thing i would like to discuss
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real quick because i've had several
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students
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email me as of late saying that they've
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had this concept on their test
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and i had not done a video on it so i
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thought i'd add it in here and that's
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called
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adverse possession by tacking
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several states do allow this so let's
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say that this
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for example the statutory period of time
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in this in your state is 10 years
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and your mom started out as adverse
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possessor number one
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and mom stayed on that property for
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three years and remember
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mom fulfilled all the essential elements
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did everything by the book mom wants to
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take off
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so you her son take i mean the smooth
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transition from mom to you as
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adverse possessors you finish out the
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remaining
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seven years of that 10-year statutory
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period of time so
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mom mom had the first three
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then you had the second seven which
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totals ten years which in your state
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is in our example is the statutory
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period of time
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you could then go into court file a
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quiet title action
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and use the doctrine of adverse
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possession by tacking if your state
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allows that and again you would have to
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go through the exact same process that
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we discussed here in the
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in the in the video but it's just
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another mechanism
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to obtain that statute continuous use
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for a statutory period of time we call
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it
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adverse possession by tacking and don't
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be surprised if you don't see that
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on your real estate licensing exam
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all right if you're going to continue
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studying i highly recommend that you
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check out the video on
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involuntary alienation we do we talked
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about it in this video and the link
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is right up here in the box and if you
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have not subscribed to the channel
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please do so click on the little circle
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to my left
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comments and questions love them both
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put them down in the comments section
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i would appreciate that that's all i got
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for today's video thanks for hanging
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i'll see y'all in the next video
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