Adverse Possession When Selling Property

Adverse possession — sometimes called squatter's rights — is one of the more unsettling property law concepts for homeowners. The idea that someone could claim ownership of your land simply by occupying it feels deeply unfair. But the law exists, and it can and does affect property sales in England and Wales.

For sellers, adverse possession matters because it can create title defects, boundary uncertainties, and disclosure obligations that the buyer's solicitor will scrutinise during conveyancing. If a potential adverse possession issue is discovered after you have accepted an offer, it can cause significant delays or even cause the sale to fall through entirely.

This guide explains what adverse possession means for sellers, how to check your title for potential claims, what you are legally required to disclose, and how to resolve issues before they become deal-breakers. It covers the current legal framework in England and Wales, including the Land Registration Act 2002 and the Limitation Act 1980.

What is adverse possession?

Adverse possession is a legal mechanism that allows a person who has been in continuous, unauthorised possession of land to apply for legal ownership of that land. The principle dates back centuries and exists to ensure that land is not left idle indefinitely when the true owner has abandoned it or failed to assert their rights.

In practice, adverse possession claims most commonly arise in the following situations:

• A neighbour who has maintained and used a strip of your garden as their own for many years, often following a fence or hedge being placed in the wrong position
• A farmer or landowner who has enclosed and cultivated a piece of adjoining land that belongs to someone else
• A person who has occupied a vacant or abandoned building without permission
• A boundary encroachment where a structure such as a shed, driveway, or wall extends onto a neighbour's land

The legal requirements for a successful adverse possession claim differ depending on whether the land is registered or unregistered at HM Land Registry. Understanding this distinction is essential for sellers.

Adverse possession of registered land

The Land Registration Act 2002, which came into force on 13 October 2003, introduced a much stricter regime for adverse possession of registered land. Under Schedule 6 of the Act, a squatter must satisfy three conditions:

1. Factual possession for at least 10 years. The squatter must have been in actual physical possession of the land for a continuous period of 10 years ending on the date of the application. This means using and controlling the land as an owner would — not just occasionally walking across it.
2. Application to the Land Registry. The squatter must make a formal application to be registered as the owner. HM Land Registry then notifies the registered owner (and any mortgagee) of the application.
3. The registered owner has a right to object. If the registered owner objects within the prescribed period (65 business days), the application is rejected unless one of three narrow exceptions applies. The owner then has two years to take steps to recover the land. If the owner fails to recover the land within two years, the squatter can make a second application, which will succeed.

This means that for registered land, adverse possession is very difficult to achieve if the owner is vigilant. The system is designed to protect registered owners, provided they respond to notifications from the Land Registry and take action within the two-year window.

Adverse possession of unregistered land

For unregistered land, the older and more straightforward rules under the Limitation Act 1980 still apply. After 12 years of continuous adverse possession, the original owner's right to bring an action to recover the land is extinguished. The squatter's title becomes effective automatically, and they can then apply to HM Land Registry for first registration.

Although the proportion of unregistered land in England and Wales is shrinking (approximately 12% of land remains unregistered according to HM Land Registry estimates), it is still relevant for older properties that have not changed hands since compulsory registration was introduced in their area. If you are selling an unregistered property, adverse possession risks are higher because the 12-year limitation period operates automatically without any notification to the owner. For more on unregistered title issues, see our guide to selling a property with missing title deeds.

How adverse possession affects your sale

An adverse possession issue — whether active, resolved, or merely potential — can affect your sale in several ways. The buyer's solicitor will examine your title as part of the standard conveyancing process, and any irregularities will trigger additional enquiries. Here is how different scenarios typically play out:

The common thread is that unresolved or undisclosed adverse possession issues create uncertainty, and uncertainty deters buyers and lenders. This is one of many issues that can cause a house sale to fall through if not dealt with proactively.

What to check on your title before selling

Before you list your property, it is worth carrying out a thorough review of your title documents to identify any adverse possession risks. You can download your title register and title plan from the HM Land Registry online portal for three pounds each. Here is what to look for:

• Entries in the charges register. Check for any entries that reference adverse possession, boundary agreements, cautions, or notices lodged by third parties. A unilateral notice, for example, might indicate that someone has asserted a claim against your title.
• Discrepancies between the title plan and physical boundaries. Walk the boundaries of your property and compare what you see on the ground with the title plan. Look for fences, walls, or hedges that do not align with the red edging on the plan. Bear in mind that title plans show general boundaries only (under the Land Registration Act 2002, section 60), so minor discrepancies are normal, but significant differences warrant investigation.
• Neighbour occupation of your land. Consider whether any neighbour is using, maintaining, or has enclosed part of your land. Even if there has been no formal claim, a long period of occupation could give rise to a future claim and must be disclosed on the TA6.
• Your own occupation of neighbouring land. Conversely, check whether you have been using or encroaching onto a neighbour's land. This is relevant because the buyer's solicitor may identify the issue and raise enquiries about it.
• Restrictions on the title. Some restrictions may relate to boundary or ownership matters that have a bearing on adverse possession risk. Your solicitor can explain the significance of any entries you do not understand.

For a detailed explanation of what your title documents contain and what each section means, see our guide to Land Registry searches explained.

Your disclosure obligations

When you sell a property in England and Wales, you must complete the TA6 Property Information Form honestly. Several sections of the TA6 are relevant to adverse possession:

• Section 3 (Boundaries) — asks whether there have been any boundary disputes, whether the boundaries have been moved, and whether any boundary agreements are in place. Any encroachment or adverse use of land relating to boundaries should be disclosed here.
• Section 7 (Rights and informal arrangements) — asks about any informal arrangements that affect the property, including any permission (or lack of permission) given to third parties to use part of your land.
• Section 10 (Disputes and complaints) — asks about disputes, complaints, or claims involving the property or its neighbours, including past disputes that have been resolved.

You must answer these questions truthfully. If you are aware that a neighbour has been occupying part of your land, that a boundary is in the wrong position, or that an adverse possession claim has been made or threatened, you must disclose it. The consequences of non-disclosure are serious: the buyer can bring a claim for misrepresentation under the Misrepresentation Act 1967 or under the Consumer Protection from Unfair Trading Regulations 2008. For more on your disclosure duties, see our guide on what to disclose when selling your property.

Resolving adverse possession issues before selling

If you have identified an adverse possession issue — or a potential one — there are several approaches to resolving it before it affects your sale. The right approach depends on the nature and severity of the issue.

1. Boundary agreement with your neighbour

If the issue involves a minor boundary discrepancy or encroachment, the simplest solution is to agree the boundary position with your neighbour and put the agreement in writing. For maximum protection, your solicitor can draft a formal boundary agreement as a deed, which can then be registered against both titles at HM Land Registry. A registered boundary agreement provides certainty for the buyer and their lender, and effectively removes the adverse possession risk. For more on boundary issues, see our detailed guide on boundary disputes when selling.

2. Determined boundary application

Under section 60(3) of the Land Registration Act 2002, you can apply to HM Land Registry to have the exact boundary determined. This requires a surveyor's plan prepared to Land Registry specifications and costs 90 pounds in application fees. The process can take several months, particularly if the neighbour objects, but it provides a definitive legal answer to the boundary position. If the determined boundary confirms that no encroachment has occurred, it eliminates the adverse possession risk entirely.

3. Asserting your ownership rights

If someone is occupying part of your registered land without permission, you have the right to take steps to recover it. This might involve asking them to leave (preferably in writing), fencing off the land, or, if necessary, seeking a court order for possession. For registered land under the 2002 Act, taking prompt action is particularly important: if a squatter has applied to the Land Registry and you object within the prescribed period, you have two years to recover the land before they can reapply. Acting quickly protects your title and demonstrates to a buyer that the issue has been dealt with.

4. Indemnity insurance

Where the adverse possession risk is low but cannot be entirely eliminated — for example, where a minor boundary encroachment has existed for many years but no claim has been made — indemnity insurance may be an appropriate solution. The policy protects the buyer and their lender against financial loss if a claim arises in the future. Premiums typically range from 100 to 500 pounds as a one-off payment. However, insurers will generally not cover situations where an active claim is in progress or where the parties are already in dispute. Your solicitor can advise on whether indemnity insurance is suitable for your circumstances and arrange the policy.

5. Regularising your own title

If you acquired your property (or part of it) through adverse possession, make sure the registration at HM Land Registry is complete and correct. Check your title register to confirm that you are recorded as the registered owner of all the land you claim to own. If the registration is incomplete — for example, if you have been occupying an additional strip of land that was never formally added to your title — you will need to resolve this before selling. This might involve a fresh adverse possession application, a transfer from the neighbouring owner, or a conveyance of the unregistered land followed by first registration.

The role of the buyer's solicitor

During the pre-contract enquiries stage, the buyer's solicitor will review your title register, title plan, and TA6 answers for any indication of adverse possession risk. They will also review any property searches for boundary discrepancies or third-party claims. Specific concerns they may raise include:

• Whether any notices or cautions on the title register suggest a third-party claim to the land
• Whether the physical boundaries match the title plan, based on satellite imagery, survey reports, or site inspection
• Whether your TA6 answers disclose any occupation by third parties, boundary disputes, or informal arrangements
• Whether the property includes any land that was acquired through adverse possession, and if so, whether the title is properly registered
• Whether indemnity insurance is available and appropriate to cover any residual risk

Each of these enquiries requires a response from your solicitor, and incomplete or evasive answers will generate further rounds of questions. Being honest and thorough in your TA6 from the outset, and having supporting documentation ready (such as boundary agreements, survey reports, or indemnity insurance policies), reduces delays and keeps the sale on track.

Adverse possession and mortgage lenders

Mortgage lenders are particularly sensitive to title defects that could affect the value or extent of the property. An active adverse possession claim is likely to cause a lender to decline the mortgage application or to impose conditions that must be met before they will lend. Even a potential claim — such as evidence of long-term encroachment — may prompt the lender's solicitor to require further investigation or indemnity insurance.

The UK Finance Mortgage Lenders' Handbook (administered by the Council of Mortgage Lenders) sets out the requirements that solicitors must satisfy before a lender will release mortgage funds. If the solicitor cannot certify that the title is good and marketable, the lender will not lend. This means that adverse possession issues do not just affect the buyer — they directly limit your pool of potential buyers to those who can purchase without a mortgage, which in most markets significantly reduces demand and the price you can achieve.

Preparing early with Pine

Adverse possession issues are almost always discoverable before a buyer enters the picture. The problem with the traditional conveyancing process is that title review, boundary checks, and TA6 completion typically happen only after an offer has been accepted — creating pressure and delays at the worst possible time.

Pine helps sellers get ahead by completing the TA6 Property Information Form — including the boundaries, rights, and disputes sections — before listing. By reviewing your title documents, walking your boundaries, and identifying potential adverse possession risks on your own timeline, you can arrange boundary agreements, obtain indemnity insurance, or take legal advice calmly rather than under deadline pressure from a buyer's solicitor.

A well-prepared legal pack means your solicitor can issue the draft contract to the buyer's side almost immediately after an offer is accepted — cutting weeks off the conveyancing timeline and significantly reducing the risk of your sale falling through.

Sources

• Land Registration Act 2002, Schedule 6 (Registration of adverse possessor) — legislation.gov.uk
• Land Registration Act 2002, Section 60 (Boundaries) — legislation.gov.uk
• Limitation Act 1980, Section 15 (Time limit for actions to recover land) — legislation.gov.uk
• HM Land Registry — Practice Guide 4: Adverse Possession of Registered Land — gov.uk/government/publications/adverse-possession-of-registered-land
• HM Land Registry — Practice Guide 5: Adverse Possession of Unregistered Land — gov.uk/government/publications/adverse-possession-of-unregistered-land
• HM Land Registry — Practice Guide 40: HM Land Registry Plans (general boundaries) — gov.uk/government/publications/land-registry-plans-the-basis-of-land-registry-plans
• Law Society of England and Wales — Property Information Form (TA6), 4th edition, 2020
• Misrepresentation Act 1967 — legislation.gov.uk
• Consumer Protection from Unfair Trading Regulations 2008 — legislation.gov.uk
• UK Finance — Mortgage Lenders' Handbook — lenderhandbook.ukfinance.org.uk
• RICS — Boundaries: Procedures for Boundary Identification, Demarcation and Dispute Resolution, 2014 — rics.org
• HM Land Registry — Property boundaries and disputes: gov.uk/government/publications/boundary-disputes

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