Acquire Abandoned Property

You probably are familiar with the saying "Finders, keepers; losers, weepers." Beyond a playground taunt, historically that also was a fair statement of abandoned property law: If you found abandoned property, you could claim it as your own.[1] However, the law today is a bit more complicated, as many states have enacted legislation that alters the treatment of lost or abandoned property – particularly property such as real estate or motor vehicles in which the record owner can reasonably be discovered.

Steps

Acquiring Abandoned Real Estate

  1. Make sure it's actually abandoned. Just because a house is vacant or appears run-down doesn't necessarily mean it's abandoned.
    • The problem with taking control of an abandoned piece of real estate is that somebody does technically own it, even if they don't live in it or take care of it.[2]
    • Generally speaking, real estate can never be abandoned, because there will always be the name of an owner recorded on the deed for the property.[1] But that doesn't mean that whoever owns it still wants to own it. In many cases, the owner decided selling the property was more hassle than it was worth.
  2. Find out who owns the property. The easiest way to find out who owns the property is to check your county's property tax records.
    • You can talk to neighbors or take other steps to find out who owns the property, but property tax records are the easiest way. If real estate exists, someone is paying taxes on it – or owes taxes on it – and the county tax assessor will have that person's name and contact information.
    • Keep in mind it's possible that the address the tax assessor has for the owner is the same as the address of the property you believe is abandoned.[3]
    • Another way to find the property owner is to look up the deed for the property in the county recorder's office. If any liens such as mortgages are recorded on the deed, try contacting the bank or mortgage company instead of the individual listed as property owner.
  3. Contact the record owner. Once you have a name and address of the owner of the property, attempt to get in touch with them regarding the status of the property.
    • This may require a little detective work on your part. For example, if the only address you can find for the owner is the street address for the property you believe to be abandoned, try sending a post card anyway. The property owner may be having his mail forwarded to a different address, so you can still reach him that way.
    • If the property owner is actually a bank or mortgage company, you might have better luck tracking them down – especially if you make it clear you want to pay them money.[4]
  4. Make the owner an offer. If you are able to make contact with the owner, offer to take the property off their hands.
    • If the owner owes back taxes, you may be able to acquire the property simply by offering to pay the back taxes.
    • However, this amount may be more substantial if the owner owed additional money on the house when he abandoned it. Make sure you conduct thorough research on the house's title to ensure you're taking title free and clear of any debts aside from those you're willing to pay.
    • A bank that owns property due to a foreclosure probably wants to get back as much as it can. Decide how much you can afford to spend on the property, accounting for any repairs that might need to be made, and make an offer.[4]
  5. Attempt adverse possession. If you cannot contact the owner, you can stake a claim on the property and see if you can keep it.
    • If you openly "squat" on the property for a number of years – typically anywhere from five to 25 years or more – and the owner of record never tries to stop you, the title for the property might revert to you.
    • In any case, this is a risky move considering the rightful owner could return at any moment and have you arrested for trespassing.[2][5]

Acquiring Abandoned Personal Property

  1. Make sure it's actually abandoned. Just because someone leaves something somewhere doesn't mean they've intended to rid themselves of it.
    • However, if someone intentionally abandons most kinds of personal property, they lose ownership of it. This must be a deliberate act.
    • In many states, a previous owner may come back and reclaim even intentionally abandoned property within a certain period of time.[6]
    • In the case of intangible property such as intellectual property, generally a period of time must pass during which the registered owner does nothing to control the property or limit access to it before it's considered abandoned.[7]
  2. Determine if anyone else has a better claim to the property. Typically the owner of the building or land where the property is left has a claim to the property that beats everyone but the true owner, even if you found it.
    • For example, if you find a wallet on a street, you may be entitled to keep it. If, however, you find that wallet in a coffee shop, the owner of the coffee shop may have a better claim to the wallet than you do. However, the original owner of the wallet always has the superior claim, and provided the wallet included some sort of ID, you could track down the original owner fairly easily.[8]
  3. Hold the property in trust, if necessary. In some circumstances, you may be required by law to store the property for a period of time before you can claim it as your own.
    • For example, if tenants leave personal property behind after an eviction, landlords typically are required to store the property for a period of time and notify the former tenants that the property is being kept. If the former tenants return to reclaim their property, the landlord can charge them reasonable storage fees.[6]
    • The amount of time property must be held varies among states, but typically is less than a month. After that period passes, the landlord is free to sell the property, throw it away, or keep it for himself.[9]
  4. Take the property as your own. If the true owner never reclaims the property, you are free to take it.

Acquiring Abandoned Vehicles

  1. Check state or local law regarding abandoned vehicles. All states have laws regarding abandoned vehicles, but your city or county may have a stricter or more specific ordinance.[10]
  2. Make sure the vehicle is actually abandoned. Just because a car is broken down doesn't necessarily mean its owner intended never to claim it again.
    • However, if a car is stripped or burned, or if it's missing significant parts, it's a pretty safe bet that it's been abandoned.[10]
  3. Contact local law enforcement. In most states, if you find an abandoned vehicle you must call local law enforcement and report it – even if you find it on your own property.
    • Make sure you call the police or sheriff's department's non-emergency number – not 911 – to report an abandoned vehicle.[10]
    • Be prepared to give the officer who handles your call the exact location of the vehicle, as well as the make, model, and any other information you can give her about the appearance or condition of the vehicle so she can find it.[10]
    • In most states an abandoned vehicle or water vessel becomes state property. For example, in Michigan, you can't claim an abandoned vehicle on your private property, but you may have the opportunity to bid on it at public auction if it remains unclaimed.[11]
    • In many states, abandoning a vehicle may constitute a civil infraction[12] or even a criminal misdemeanor, depending on where the vehicle is abandoned and in what condition.
  4. Contact the owner. If you have the owner's contact information and you want the car yourself, you may be able to work out something with the owner before his time to reclaim his vehicle runs out.
    • In some areas, police place a warning sticker on the vehicle instructing the record owner that it will be towed and auctioned if not moved within 24 hours. If the owner moves the car, the period of time starts over.[10]
    • If you find a car that already has an abandoned vehicle sticker or tag on it, you may be able to contact the owner and take the car yourself.
    • Even with the owner's consent, you typically will be on the hook for title, registration, and towing fees, as well as whatever repairs are necessary to get the vehicle back in working order.
  5. Bid on the vehicle at auction. If the county or state took ownership of the vehicle, it will either be scrapped or sold at auction.
    • If the vehicle is sold at auction, you have the ability to bid for it there.
    • Some states require a vehicle be sold for scrap if it is in significant disrepair or more than a certain number of years old. Vehicles that are sold for scrap typically can't be re-titled.[13][14]

Related Articles

Sources and Citations

  1. ↑ 1.0 1.1 https://www.law.cornell.edu/wex/abandoned_property
  2. ↑ 2.0 2.1 http://www.bankrate.com/finance/real-estate/not-easy-to-claim-abandoned-home-next-door.aspx
  3. ↑ https://www.cabarruscounty.us/government/departments/tax/land-records/Pages/Land-Records-System.aspx
  4. ↑ 4.0 4.1 http://www.realtor.com/advice/find-buy-abandoned-properties/
  5. ↑ https://www.law.cornell.edu/wex/adverse_possession
  6. ↑ 6.0 6.1 http://www.legalmatch.com/law-library/article/abandoned-personal-property.html
  7. ↑ http://www.uniformlaws.org/ActSummary.aspx?title=Unclaimed%20Property%20Act
  8. ↑ https://www.law.cornell.edu/wex/lost_property
  9. ↑ http://real-estate.lawyers.com/landlord-tenant-law/abandoned-personal-property.html
  10. ↑ 10.0 10.1 10.2 10.3 10.4 http://www.nolo.com/legal-encyclopedia/dealing-with-abandoned-vehicles-your-neighborhood.html
  11. ↑ http://www.mi.gov/sos/0,1607,7-127-48268-130794--F,00.html
  12. ↑ http://www.mi.gov/sos/0,4670,7-127-47331_71082---F,00.html
  13. ↑ http://www.cga.ct.gov/2004/rpt/2004-R-0879.htm
  14. ↑ http://law.justia.com/codes/tennessee/2010/title-55/chapter-16
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