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Real Estate Purchases: A word of Advice on Property Rights
BUYER BEWARE of the "adverse possessor" -Commonly known as squatters rights or "claim jumping" in the west, this is still alive and well even in today's high tech world. You may be negotiating to purchase property or may just have purchased one. If you haven't personally inspected every acre (and every building) you could be in for a surprise. Even your own real estate broker and the seller might not know the problem is there.Every state has its version, but in Montana it is Montana Code 70-19-401 through 70-19-421, if a person has paid the property taxes on the land and has occupied even a part of it for only 5 years, he might claim possession "adverse" to your ownership. You may never get him evicted and he may start a quiet title court case to take your land from you. Not just in rural abandoned properties, I watched this happen even in a well trafficked residential section of Los Angeles in a residence thought to be abandoned and purchased with relatively little inspection.
And your Title Company will not help. The Title Company will not do a physical walk through inspection of your property. They only insure your title against problems that are "of record". This means they only look at what is recorded on the county deed records. Squatters won't record anything. Some of them are professional property thieves, and will wait till they think their 5 years has run and then they'll begin legal filings. Then, you'll need a good real estate attorney.
THE SOLUTION: know your property before putting money down.
 
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