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What is squatting, and why could I nab a $1.7 million house for it?

Anastasia Santoreneos
A derelict home and a man with keys. Source: Getty
A derelict home and a man with keys. Source: Getty

If you looked up the definition squatting, I’m sure you wouldn’t find what we’re about to talk about.

But squatting is a very real thing in Australia, and it’s seen those who know the law acquire homes that they never paid a cent for.

Just last night, a Sydney property developer who took a deceased estate from a family by ‘squatting’ in the $1.7 million home has won a Supreme Court appeal to keep the house.

Bill Gertos won ownership rights under “adverse possession” laws, despite a challenge from the relatives of the last listed owner.

He simply hopped in, changed the locks, repaired and renovated the home, and started renting it out.

While the family argued they had no idea they were entitled to the house, the presiding Justice on the case said he was satisfied Gertos had occupied the home since 1998, so he should keep it.

Sounds unfair?

Well it is, and it isn’t.

What exactly is squatting?

Squatting, or adverse possession, is when someone is in possession of a home for a certain period of time without the real owner’s consent, and eventually is awarded that land.

According to the Legal Beagle, the basic principle in Australia is that a person who occupies a property for long enough can claim legal title to it, as long as the rightful owner doesn’t object when the squatter goes to claim it.

In Queensland, Western Australia and New South Wales, that period is 12 years, while in Victoria and South Australia, it’s 15 years.

In South Australia it’s illegal to squat, but squatters can still apply for ownership if they prove they’ve lived there for the requisite time.

Where did this law even come from?

According to a University of NSW property law specialist, Cathy Sherry, squatting is a very old doctrine of property law.

So old in fact, that it dates back to 1900 in NSW, and was originally aimed at communities with a large illiterate population.

"Like 200 years ago in England," Sherry told the ABC. "[Back then] they were unlikely to have documents that they owned land."

But now we have documents. Why is it still a thing?

According to Sherry, you couldn’t run a property system without it, and there will always be odd circumstances that arise where squatting takes effect, and she doesn’t think we’ll see reform.

"For example, you could have 'great aunt Ida' who has lived in the same property for 50 years, but no-one really thinks about the fact that her dad technically left it in his will to her brother,” she said.

What if I have a squatter in my property?

Squatters are entitled to your home if they’ve stayed in without your consent for over 12 or 15 years, depending on the state, and are repairing it and maintaining bill payments.

While in some states it’s illegal to squat, in others it’s not a criminal offence to squat in an empty house, but it is still considered trespassing.

So, if you happen to get a call from a neighbour telling you someone’s decided to live in your home, then don’t let them stay there for 12 years – because it will become theirs.

According to Landlordology, you should immediately call the police, because the longer you wait, the more likely it will be that the courts think you gave the person permission to be there.

If that doesn’t work, you can apply to the Courts to have the squatters removed by law, which is lengthy and frustrating, but ultimately you’ll get your property back.

I’m going away soon. How do I squatter-proof my house?

Install some deadlocks on doors and windows, and fit good-quality safety screens on windows and sliding doors.

Keep the property looking neat, so it doesn’t give off an empty vibe, and install an alarm system.

Get a family friend or a property manager to check on it frequently, or if you’re not going away and it’s simply an unoccupied premises, check in on it yourself.

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