North Carolina Squatters’ Rights & Adverse Possession Laws - 2025

By the Hemlane Team

Last spring, a landlord I work with, let's call her Maria, inherited her grandmother's house outside Raleigh. The property had been empty for about three years while the estate went through probate. When Maria finally drove out there to assess the condition she found someone had been living in it. Garden planted. Mail in the box. The whole nine yards.

Her first question: "Can I just change the locks?"

My answer surprised her: "Absolutely not."

Here's why that matters, and what every North Carolina property owner needs to understand about adverse possession.

The Legal Reality of Adverse Possession

"Squatters' rights" isn't just internet folklore. North Carolina recognizes a real legal mechanism called adverse possession, codified in N.C. Gen. Stat. § 1-40. Under this statute, someone who occupies your property continuously for 20 years—meeting very specific legal tests—can actually claim ownership. They don't pay you. They don't inherit it. They just... take it, legally.

I know that sounds wild. The rationale goes back centuries: if you neglect property for decades while someone else maintains and improves it, courts decided that person has earned ownership rights. Whether you agree with that philosophy or not, it's the law in North Carolina and most other states.

The American Land Title Association studied adverse possession across the country and found huge variations—some states require only 7 years, while others demand 30 or more. North Carolina sits in the middle at 20 years for standard claims.

Breaking Down the Five Requirements

Courts won't just hand over your property because someone's been camping on it. The occupant must prove all five elements. Miss one, and the claim collapses.

Hostile Possession (Not What You Think)

When lawyers say "hostile," they do not mean violent or antagonistic. They mean unauthorized. The person must occupy your property without your permission, treating it as their own.

Example: Your neighbor asks if he can store some equipment on your back acre and you say yes. That's not hostile, you gave permission. But if he starts storing equipment without asking, builds a shed and treats that acre like it's his? Now we're in hostile territory.

The North Carolina School of Government teaches that NC uses an "objective standard" here. The occupant's intentions or beliefs don't really matter. What matters is whether they're acting like an owner without your consent.

Actual Possession Means Real Use

Walking through someone's woods once a month doesn't cut it. Actual possession requires the kind of physical use and presence that a real owner would demonstrate. According to FindLaw's analysis, this includes:

• Building things like sheds, decks and fences
• Gardening or farming
• Living in a structure on the property
• Making repairs and improvements
• Keeping vehicles or belongings there
• Regular maintenance like mowing

The distinction matters. Someone occasionally hiking across your vacant land? Not actual possession. Someone who's built a cabin, cleared trails, and spends weekends there year-round? That's getting into actual possession territory.

Open and Notorious Occupation

This requirement protects property owners by ensuring the occupation is not hidden or sneaky. If you checked on your property with any regularity, you would notice someone was using it.

Visible signs typically include fences and posted signs. Sometimes the squatters post "No Trespassing" signs, park vehicles, cultivate gardens, and erect obvious structures, indicating regular activity. Nolo's guide emphasizes this element exists so owners get a fair chance to discover the problem and address it.

Someone sneaking onto your property at night to secretly use it? Doesn't meet this standard. Someone who's there in broad daylight with visible improvements? That's open and notorious.

Exclusive Possession Means No Sharing

The occupant can't share the property with you, other people, or the general public. They must possess it exclusively, acting as the sole owner.

Here's where it gets interesting with co-owners. Say two siblings inherit property together. If one sibling moves onto the property, changes the locks, and acts as the sole owner for 20 years or more, while the other sibling never uses it, that could potentially constitute adverse possession between co-owners. Courts call this "constructive ouster," and it's surprisingly common in family property disputes.

The Big One: 20 Continuous Years

This is the killer requirement that stops most adverse possession claims. Twenty years is a long time. People move. They lose interest. They get busy with life. Maintaining continuous possession for two full decades takes serious commitment.

Short vacations and reasonable absences don't break continuity. But if someone occupies your hunting cabin for summers only, that's not continuous. Or if they use your vacant lot for five years, abandon it for two, then come back? The clock resets.

The 20-year period only starts counting once ALL the other elements are satisfied. If someone lives on your property with permission for 10 years, then you revoke permission, they can't claim those first 10 years. The clock starts when the possession becomes hostile.

The Color of Title Shortcut

North Carolina law includes a significant exception. N.C. Gen. Stat. § 1-38 says if someone has "color of title," they only need seven years instead of twenty.

What is the color of title? It's a document like a deed, will, court order or whatever that looks legitimate and appears to give the person ownership rights, even though the document is somehow defective. Maybe the deed was not properly notarized. Maybe it describes the wrong parcel. Maybe the person who signed it did not actually own the property.

Real scenario: A buyer purchases property based on a deed that later turns out to have incorrect boundary descriptions. They've been maintaining what they thought was their land for seven years. They could potentially claim ownership of that additional land under color of title, even though their deed was technically wrong.

This matters because boundary disputes between neighbors often involve color of title claims. Both sides have deeds. Both think they're right. Someone's been maintaining the disputed strip for years based on their (incorrect) deed. Seven years later, they might own it legally.

Property Taxes: Helpful But Not Required

Here's something that surprises people: North Carolina doesn't require squatters to pay property taxes to claim adverse possession. Some states do—it's mandatory in Florida and Tennessee, for example. Not here.

That said, if someone claiming adverse possession has been paying taxes on your property, that massively strengthens their case. It's documented proof they treated the place as their own. Tax records don't lie.

But the absence of tax payments won't automatically defeat their claim. I have seen adverse possession cases succeed even though the occupant never paid a dime in taxes.

Trespassing vs. Squatting: Different Animals

People mix these up constantly. Understanding the difference matters because the legal consequences diverge sharply.

Trespassing is a crime in North Carolina under Chapter 14, Article 22B of state statutes. It happens whenever someone enters property without permission, abandoned or not. According to Kirk Kirk Law, North Carolina recognizes two degrees:

First-degree trespass (Class 2 misdemeanor) involves entering property that's clearly enclosed, fenced or posted with "No Trespassing" signs meeting legal requirements. Penalties can reach 60 days in jail and $1,000 in fines.

Second-degree trespass (Class 3 misdemeanor) covers entering property after being told to leave or where signs are posted. Lesser penalties but still a criminal matter.

Certain circumstances escalate charges. Trespassing on utility facilities, nuclear plants or certain other sensitive locations can become a felony.

Squatting, by contrast, is not inherently criminal. It refers to occupying abandoned property long-term. Yes, the initial entry might technically be trespassing. But if the squatter meets all adverse possession requirements for 20 years, they are not committing an ongoing crime. They are potentially establishing legal ownership.

The practical difference: Trespassers get arrested and prosecuted. Squatters get sued civilly through eviction proceedings.

What About Holdover Tenants?

A holdover tenant is someone whose lease expired but who refuses to leave. This happens more often than you'd think. We deal with it regularly at Hemlane.

Holdovers occupy a weird middle ground. They're not trespassers in the traditional sense because they once had permission. They're not squatters either, because that prior permission defeats the "hostile" element needed for adverse possession.

Even if a holdover tenant refuses to leave for years, they can't claim ownership through adverse possession. Their initial lawful tenancy kills the hostile requirement permanently. You remove them through formal eviction proceedings, which we will cover shortly.

How to Protect Your Property

Prevention beats litigation every time. Based on thousands of properties we monitor through Hemlane's platform, here's what actually works:

Check Your Properties Regularly

Visit vacant properties monthly at minimum. Drive by. Walk around. Look for these red flags:

• Lights on when they shouldn't be
• Vehicles you don't recognize
• New structures or improvements
• Signs of landscaping or maintenance
• Posted notices or signs
• Worn paths indicating regular foot traffic
• Curtains in windows of vacant buildings

I can't stress this enough: Most adverse possession problems grow from simple neglect. Owners don't visit. They don't check. Years pass. By the time they notice, the situation is entrenched.

Post Legal "No Trespassing" Signs

North Carolina law sets specific standards. Your signs must be:

• At least 144 square inches (12" x 12" works)
• Placed no more than 200 feet apart
• Visible and readable from normal approach routes
• Posted around the entire property perimeter

Hardware stores sell compliant signs for under $10. Posting them properly establishes legal notice that entry is forbidden, which helps if you need to pursue criminal trespassing charges.

Physical Security Measures Work

Don't overthink this. Basic security often suffices:

• Fencing clearly marks boundaries and restricts access
• Locked gates at driveways and paths
• Motion-sensor lights deter nighttime entry
• Trail cameras document trespassers (modern ones send photos to your phone)
• Secure all buildings—doors, windows, any entry points

I've seen cases where simple fencing prevented occupation attempts. People are less likely to hop a fence and settle in than to walk onto an obviously unmonitored vacant lot.

Act Fast When You Find Occupants

Speed matters. If you discover someone living on your property:

1. Document everything immediately—photos, videos, notes with dates
2. Don't confront them physically—that's asking for trouble and potential liability
3. Serve written notice to vacate within 5-7 days
4. Send notice certified mail AND post a copy visibly on the property
5. Keep copies of everything for court if needed

That paper trail becomes crucial if you end up in litigation.

The Legal Process for Removing Squatters

You cannot forcibly remove squatters yourself. Period. "Self-help" evictions are illegal in North Carolina. You will expose yourself to civil liability and potentially criminal charges. Do not do it, no matter how tempting.

Instead, follow this process:

Step One: Call Police

Contact local law enforcement first. Bring documentation proving ownership: your deed, recent tax bills, title insurance and whatever you have. Sometimes officers will escort trespassers off the property immediately, treating it as a criminal trespass situation.

Often, though, police won't get involved if the occupants claim they have "rights" to be there or if the situation seems like a civil matter rather than criminal. Don't be surprised if officers say, "This is a civil issue, you will need to go through eviction court."

Step Two: Formal Written Notice

Draft a notice demanding the squatters vacate by a specific date (typically 5-7 days from service). The notice should:

• Identify you as the legal property owner
• Identify the squatters by name if known (or "John/Jane Doe" if not)
• State clearly that they have no permission to occupy the property
• Demand they leave by a specific date
• Warn that legal action will follow if they don't comply

Send this via certified mail with return receipt requested. Also post a copy prominently on the property where they'll see it. Both methods of service matter.

Step Three: File Eviction Lawsuit

If they don't leave voluntarily, you file a "summary ejectment" action (eviction lawsuit) in district court. You'll need to prove:

• You're the legal owner (bring your deed)
• The occupants are there without permission
• You've given proper notice

The court schedules a hearing. If you win, the judge issues a "writ of possession" authorizing the county sheriff to physically remove the squatters. The sheriff's office handles the actual removal—you don't.

This process takes weeks to months depending on court backlogs. Legal fees vary but expect to spend $1,000-$3,000+ if you hire an attorney. Many property owners find that investment worthwhile to avoid procedural mistakes that could delay the case further.

Through Hemlane's Eviction+ service, we help landlords access mediators and process servers who can sometimes resolve these situations faster. Our data shows 93% of cases avoid courtroom appearances entirely when handled properly from the start.

Common Questions We Hear

Can someone claim adverse possession on a foreclosed property?

Technically yes, if it meets the "abandoned" standard and they maintain possession for 20 years with all required elements. Realistically, banks and mortgage servicers monitor foreclosed properties to prevent exactly this. It's rare but not impossible.

What if I inherited property but didn't know about it for years?

North Carolina provides some protection if you were under a legal "disability" when the adverse possession began—meaning you were a minor, imprisoned, or legally incompetent. You may get up to three additional years after the disability ends to take action. But there are caps on this extension. Talk to a real estate attorney about your specific situation.

Does paying property taxes speed up adverse possession claims?

No. Unlike Tennessee or Florida where tax payments reduce the required time period, North Carolina's 20-year requirement stays the same whether the squatter pays taxes or not. Tax payments just strengthen the claim; they don't shorten the timeline.

Can you claim adverse possession against government property?

Nope. N.C. Gen. Stat. § 1-45 explicitly exempts state and local government properties from adverse possession. Public parks, government buildings, and municipal lands can't be acquired this way. Good luck trying to claim adverse possession on a fire station.

What happens with boundary disputes between neighbors?

These get messy fast. Often both neighbors have deeds they believe are accurate. Someone's been maintaining a disputed strip of land based on their deed for years. If that deed constitutes "color of title" (even though it's technically wrong), they might establish ownership in just seven years instead of twenty. This is exactly why property surveys matter when you buy land.

Comparing Requirements Across States

How Different States Handle Adverse Possession

Data compiled from American Land Title Association research

How Hemlane Helps Landlords Stay Protected

We built Hemlane specifically because property management felt broken. Traditional property managers charge 8-10% of rent monthly, offer minimal transparency, and often miss critical details like expired leases or maintenance needs.

Our platform gives landlords tools to prevent adverse possession problems before they start:

• Inspection scheduling with automated reminders—you'll never forget to check on that vacant property
• Maintenance tracking that documents your ongoing property care
• Lease management with expiration alerts so tenants don't become holdovers
• 24/7 repair coordination ensuring properties stay maintained and clearly occupied

We serve landlords managing everything from a single rental house to portfolios spanning multiple states. Our pricing is transparent (no hidden fees), and we maintain 4.8-star ratings across Capterra, GetApp, and Software Advice.

Whether you manage properties yourself or work with us, the fundamental truth remains: engaged, attentive ownership is your best defense against adverse possession.

Bottom Line

Real estate probably represents your biggest investment. Losing property through neglect—even unintentional neglect—costs people hundreds of thousands of dollars. I've watched it happen.

The good news? Prevention is straightforward. Visit your properties regularly. Post proper signage. Install basic security. Act immediately when problems surface. Follow legal procedures if you need to remove occupants.

And if you're facing an adverse possession claim—either defending against one or pursuing one—talk to an experienced North Carolina real estate attorney. These cases are intensely fact-specific. Professional guidance makes all the difference.

For property owners looking to streamline operations while reducing risks, modern platforms like Hemlane offer affordable solutions that keep you connected to your investments without the overhead of traditional management companies.

About Hemlane: We're a property management platform serving landlords across all 50 states. Our software combines tenant screening, rent collection, maintenance coordination, and financial reporting in one easy platform, giving property owners transparency and control. Learn more at hemlane.com.

Legal Disclaimer: This article provides general information about North Carolina property law and should not be considered legal advice. Adverse possession cases involve complex fact-specific analysis. For guidance on your specific situation, consult a licensed North Carolina real estate attorney.

Last updated: December 2025