Squatters Rights In North Carolina: Everything You Need To Know

In North Carolina, squatters rights can open the door to legal property claims under certain conditions. Known formally as adverse possession, this legal doctrine allows someone who occupies a property without permission to potentially gain ownership over time. While this may sound surprising, adverse possession laws have long been part of real estate law across the United States.

If you’re a landlord in the Tar Heel State, it’s critical to understand how squatters rights in North Carolina work—especially if you own vacant properties or inherited homes that sit unmonitored. The risk of unauthorized occupation is real, and once someone claims squatter status, removing them becomes more complicated than simply asking them to leave.

North Carolina landlords can help protect themselves by investing in landlord insurance in North Carolina and taking preventative steps before squatters become a legal liability. This guide will walk you through the legal framework for squatters rights, what property owners can do, and how these laws compare nationally.

What Are Squatters Rights?

Squatters rights refer to the legal process through which an individual occupying someone else’s property—without permission—may eventually gain legal ownership if specific criteria are met. These laws exist in all 50 states, including North Carolina, though the timeframes and requirements vary.

Why Do Squatters Have Rights?

Squatters rights exist primarily to address situations where property owners abandon land, and another party puts it to productive use. These laws discourage neglect, resolve long-standing disputes, and promote land development. They also create a legal pathway to formal ownership after years of occupation.

North Carolina Adverse Possession Requirements

Under North Carolina law, a squatter may claim adverse possession if they meet the following conditions:

• Hostile Possession: The squatter occupies the land without the owner’s permission.
• Actual Possession: The squatter physically resides on the property.
• Open and Notorious: Their presence is obvious and visible to neighbors, passersby, and the owner.
• Exclusive: They do not share the property with others, including the legal owner.
• Continuous Possession: They occupy the property uninterrupted for a statutory period.
  

In North Carolina, the required period is 20 years. However, if the squatter has color of title (a defective deed or other documentation) and pays property taxes, the timeframe may be reduced to 7 years.

More details can be found on the North Carolina General Assembly website.

How Do Squatters Rights Work In North Carolina?

To meet the conditions for a successful adverse possession claim, a squatter must:

1. Take physical control of the property (such as fencing it, living there, or making improvements).
2. Remain on the property without interruption for the full statutory period.
3. Avoid eviction attempts or legal removal during that time.
4. Act as though they are the rightful owner—including paying taxes if pursuing a 7-year claim under color of title.

It’s important to note that simply trespassing doesn’t qualify someone for squatters rights. They must behave as a property owner would—consistently, visibly, and without interference.

Squatters Rights 30 Days: Does It Apply In North Carolina?

While some online sources reference “squatters rights after 30 days,” this timeframe doesn’t apply to North Carolina law. Thirty days of occupation does not grant any legal rights or protections to a squatter. In North Carolina, the bar is much higher—20 years of continuous, adverse possession is required for a valid claim (or 7 years with color of title and tax payments).

Legal Eviction Process For Squatters In North Carolina

If you discover a squatter on your property, you must follow North Carolina’s formal eviction procedures. These include:

1. Notice to Quit: Provide written notice that the occupant must vacate.
2. Summary Ejectment Filing: If they don’t leave, you must file for eviction in district court.
3. Court Hearing: A judge will review the case. If the squatter cannot prove legal right to stay, the judge will issue an order.
4. Writ of Possession: The local sheriff’s office can then remove the squatter by law.

Self-help measures like changing the locks or shutting off utilities are illegal and may expose landlords to civil penalties.

For more information, you can review the North Carolina Judicial Branch’s landlord-tenant eviction process.

What States Have Squatters Rights?

All U.S. states have squatters rights laws, but the timelines and conditions differ:

• North Carolina: 20 years (or 7 with color of title and taxes)
• California: 5 years
• Texas: 10 years (or as little as 3 with title and taxes)
• New York: 10 years
• Illinois: 20 years

Understanding your own state’s statutes is critical—especially if you’re a property owner managing vacant units or inherited properties from out of state.

Why Do Squatters Rights Exist?

The reasoning behind squatters rights is rooted in public policy. Lawmakers want to prevent land from lying dormant while providing legal clarity over long-occupied but poorly documented property. These laws also reduce court backlog by incentivizing resolution through long-term possession rather than repeated lawsuits.

How Can North Carolina Property Owners Protect Themselves?

To prevent squatters from gaining a foothold, property owners should:

• Inspect vacant properties regularly.
• Secure buildings with locks, fencing, and surveillance.
• Post “No Trespassing” signs prominently.
• Hire property managers for long-distance or multi-unit portfolios.
• Keep up with tax payments and title documentation.

Even if you believe a property is secure, adverse possession can occur if someone lives on it without permission and your oversight lapses for 20 years.

What Are the Risks for Landlords?

Squatters may create significant legal, financial, and liability issues. If a squatter injures themselves or causes damage, questions about liability coverage can arise. Most landlord insurance policies do not cover damage caused by unauthorized occupants or claims made during illegal occupancy—so prevention is key.

Frequently Asked Questions

How long before squatters rights apply in North Carolina?

A squatter must occupy the property continuously for 20 years, or 7 years with color of title and payment of property taxes, to qualify for adverse possession.

Do squatters have to pay property taxes in NC?

Only if they’re trying to claim adverse possession under the 7-year rule with color of title. It’s not required for the 20-year version.

Is squatting the same as trespassing in North Carolina?

Not exactly. Squatting becomes a civil matter if the squatter has long-term possession. Trespassing is a criminal offense, especially if the individual enters forcibly or refuses to leave after notice.

Can a squatter get utilities in their name in North Carolina?

It’s possible, though it may require falsifying information. Some squatters attempt to establish utility service as proof of residency.

How can landlords stop squatters before a legal claim is made?

Regular inspections, visible signage, and a prompt eviction process are the best deterrents.

Final Thoughts

Squatters rights in North Carolina are complex, but landlords who stay informed and proactive can avoid costly legal battles. Remember, the key to protecting your property lies in visibility, vigilance, and proper documentation.

If you’re a landlord managing rental properties or inherited real estate in North Carolina, be sure your property is secure—and your coverage is too. Get a quote from Steadily today to learn more about how landlord insurance can safeguard your investment.