SO MANY WAYS TO BUY (PART 3) BRUCE KELLOGG
#22 – Adverse Possession
An interesting way to acquire a property is through what is called, legally, “Adverse Possession”. It involves
taking possession of a property and continuously possessing it for a number of years specified by state law.
The years vary by state from six to thirty, with California being just seven. Possession has to be “open”, which
means coming and going at will. It has to be “notorious”, which means it can be readily observed. It has to be
continuous, so a break disrupts the timeline. It also has to be “hostile to the interests of the owner”, which
means overstaying an invitation by the owner does not qualify. California also requires the possessor to pay
the property taxes, as well. If all conditions are met, the possessor will sue the owner in a “quiet title action” to
obtain title in their name. This situation occurs more with rural property, and is not common, but is fun to think
about! See wikipedia to learn more.
#23 – Involuntary Methods
The other acquisition methods in this series are all voluntary, except two, which are involuntary. These are: a)
Inheriting a property and, b) receiving a property as a gift. These are mentioned for completeness, but are too
simple to warrant discussion.
#24 “Leftovers”
There are three additional ways to acquire real estate which are more like techniques that can require no cash
down payment. Here they are:
“PNote” iivolves giving the seller an unsecured promissory note for the down payment. This works best if the
parties know and trust eachother. But it's a viable approach.