Hypotheticals by Manny Wood Published in the Coffs Coast Advocate on 17 November 2018.
Barry, Accountant, is visiting his clients when he notices that a property on the street is unoccupied and falling into disrepair. A year passes and Barry observes that nothing has changed. Barry speaks to his clients who inform him that an elderly lady had died and since then the property has been vacant.
Barry is aware that it may be possible to obtain title to the property by taking possession of it over a sufficiently long period of time.
Barry obtains legal advice to the effect that if he occupies the property for at least 12 years, he can apply to the Registrar-General to register him as the owner of the property.
Barry visits the property. There is no rear door and Barry goes inside. The property looks as though it had been occupied by squatters but that it was not presently occupied and due to its state of repair, is uninhabitable.
Barry engages a local builder, firstly to secure the property and then make the property fit for occupation. The repairs cost $35,000.
When the repairs are complete, Barry retains a managing agent. The property is soon tenanted and Barry begins to receive rent. Barry pays the council rates and insurance on the property.
20 years pass and Barry expends a further $100,000 on repairs to the property and the payment of outgoings.
Barry then makes an application to be registered as proprietor.
Members of the deceased proprietor’s family, as beneficiaries of the estate are informed and oppose Barry’s application.
The court ultimately finds that the 12 year limitation period had expired for deceased estate to take possession of the property and grants Barry’s application to become the legal owner of the now $1 million property.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
