How To Deal With Squatters When Selling a Property

Finding squatters on a property you plan to sell can delay the sale, scare away buyers, and create unexpected legal problems. If someone is living in your property without permission, you generally cannot remove them by changing the locks or forcing them out yourself. In many situations, property owners must follow state eviction procedures, even when the occupant has no right to remain there. Taking shortcuts can delay your sale and expose you to legal claims of your own.

A vacant home can attract more than just prospective buyers. It can also become an easy target for people looking for a place to stay. By the time you realize someone has moved in, you may already have a closing date on the calendar. Understanding your legal options early can help keep your sale on track and reduce costly delays.

For legal help with squatters, eviction procedures, or property disputes, consult an attorney who can explain the laws that apply in your state.

What Is a Squatter?

A squatter is someone who occupies a property without the property owner’s permission. They are different from a trespasser, who makes unauthorized entry but doesn’t attempt to live there.

A squatter is also different from a holdover tenant, who originally had permission from the property owner. They were a tenant with a lease; however, the lease ended, and the tenant refused to vacate the property.

A squatter is also not a former owner who remains in a property after a lender has foreclosed on the property. Additionally, a squatter is not a guest who refuses to leave.

Properly identifying a squatter’s status is crucial because it changes their legal rights and the property owner’s options. Different laws and procedures apply for removing an unwanted individual depending on their status.

Have Real Estate Questions?

Whether you are looking to buy or sell or you're in a dispute, top real estate lawyers in the Super Lawyers directory can protect your rights and interests.

Find a lawyer today

Why Squatters Can Complicate a Property Sale

Discovering that there are squatters living in a property that is for sale can significantly delay the sale process for several reasons.

Upon disclosure of the squatters, the buyers may refuse to follow through on closing. People generally don’t want to buy a property that comes with legal issues and that they cannot use. This can be especially troublesome if there is a cash buyer. Receiving a cash offer usually means a quick sale. Losing that cash buyer can be a significant financial blow for a seller who needs the sale proceeds.

Unfortunately, squatters on a property commonly cause property damage. The current owner may face ever-increasing repair costs to address the damage. The alternative is a reduction in property value.

Even when moving forward with squatters present, their presence can make it difficult to do showings or inspections. Squatters may blockade the property to prevent people from entering. They may become aggressive or hostile, creating an unsafe situation.

Many lenders may hesitate to approve a loan for a property that has squatters. The property secures the loan. The lender could be concerned about recouping their money if the property is damaged by squatters. They may also be concerned about the buyer abandoning the property and the loan when removing the squatters proves challenging and time-consuming.

If the owner decides to remove the squatters before selling, then the sale process is delayed until the eviction process is complete. This can take months as the case moves through the court system.

Can You Remove a Squatter Yourself?

Do not take self-help eviction action against squatters. Doing so can create legal liability and make problems worse. Property owners should avoid changing locks, shutting off utilities, removing the squatter’s personal belongings, harassing the occupants, or using physical force.

Additionally, calling local law enforcement to remove the squatters isn’t an option in most jurisdictions. Removing squatters is a civil matter, not a criminal one, though this is changing in some states.

Removing a squatter is different from removing a trespasser. A police officer can remove and arrest a trespasser who refuses to leave the property. The officer will listen to all parties and evaluate the situation before taking any action. Claiming a squatter is a trespasser isn’t enough to have them removed.

State Squatter Removal Laws

In recent years, many states have recognized that the traditional eviction process is overly harmful to property owners. It can let squatters benefit unfairly.

To rectify this, these states have passed specific laws to address squatters. Alabama, Florida, Georgia, Nevada, Tennessee, Washington, and West Virginia have all passed laws criminalizing squatting. Many other states currently have proposed laws.

These laws expedite the removal process by allowing property owners to submit removal requests directly to law enforcement. If the required conditions are met, a police officer will assist with removal.

How To Remove a Squatter Legally

To legally remove squatters, the property owner would need to pursue an eviction. Speaking with an attorney who is familiar with real estate law can be beneficial. The attorney will begin by determining the squatter’s legal status. Then, they will recommend the proper procedure for removal.

The first step in removing a squatter through eviction is to send them a notice to vacate. States have varying requirements for how this notice is communicated and how much time the property owner must give the squatter to leave. If the squatter hasn’t left, the typical next step is to file an eviction case in the jurisdiction where the property is located. The squatter will then receive an eviction notice.

The squatter and property owner will need to attend a court hearing. There, each party will present their evidence. If either party doesn’t attend, the court may issue a default judgment in favor of the attending party. If both parties attend, the court will make a ruling based on the evidence presented.

For a ruling in favor of the property owner, the court issues a writ of possession. The property owner needs this judgment to take the next step in eviction. In most jurisdictions, this means contacting the local law enforcement to assist with physical removal.

Can a Squatter Gain Legal Rights?

In some situations, an unauthorized occupant may have legal protections that require a formal court process to remove them, such as an eviction or unlawful detainer case, even if the person never had permission to live there or a written lease.

Adverse Possession

While less common, a squatter can eventually gain legal ownership of the property. Adverse possession laws apply when someone openly lives on another’s property for a specified amount of time. They can eventually claim legal title to the property.

States have specific requirements that must be met to make an adverse possession claim. Many squatters do not meet all of the requirements. The first is openly living on the property for a certain amount of time.

The required time period varies widely by state, and it can be as short as a few years in some situations, or as long as a few decades in others. The person can’t hide or sneak in and out of the property. They must openly live on the property as if they were the rightful owner.

Additional requirements vary by state, but they often focus on whether the possession was actual, open and notorious, exclusive, hostile, and continuous for the required time, and some states also require things like paying property taxes or claiming under color of title.

The occupancy must be continuous for the entire time. If the owner takes steps that interrupt the required continuous, hostile possession, such as successfully removing the occupant, that can defeat an adverse possession claim.

How To Protect Vacant Property from Squatters

Being proactive is the best approach for protecting a property from squatters. Regularly visit the property or hire a property management company to monitor it. Secure the doors and windows with locks to make it harder for someone to enter. Install a security or alarm system to alert you to unauthorized entry. Cameras are also useful for creating a documented record of unauthorized entry.

Maintain the landscaping and other maintenance needs. Neglected and distressed properties are more likely to attract squatters. These properties look easier to live in because someone isn’t actively monitoring them. Remove any signs that the property is vacant.

What To Do if You’re Preparing To Sell a House with Squatters

If you own a property that currently has squatters, immediately inform your real estate agent. Don’t promise a vacant property to potential buyers; make sure all issues are resolved before you do. It can be smart to wait to list the property until the squatter issue is resolved. That way, the house is ready for sale unencumbered upon market entry.

Gather all documentation that proves ownership. Document the unauthorized occupancy. However, avoid directly confronting the squatters. Do not make threats or harass them. Begin eviction proceedings as early as possible.

Speak with a Real Estate Attorney

Unauthorized occupants can delay a sale, reduce a property’s value, and create legal challenges that are difficult to resolve without understanding the law. An attorney can help you understand your options, protect your rights, and minimize disruptions to your sale.

Start your search with the Super Lawyers directory to find an experienced lawyer who handles landlord-tenant and real estate matters.