Adverse possession – at the end of the day … who owns the property?
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By Gillian Kirwan & Paul Carroll
Carroll & O'Dea Lawyers
Sydney, Australia
Background
Braye v Tarnawksyj [2019] NSWCC 277
The claimed land was situated between Dr Braye’s property at number 7 and Mr Ward’s (Second Defendant) property at number 5 (which was acquired in 2015). The claimed land was owned by a registered proprietor who died in 1906. Ms Tarnawskyj (First Defendant) is the administrator of the estate.
Dr Braye acquired number 7 in 1986. However, Dr Braye passed away in 2018 and his wife is the representative of his estate in these proceedings (“Plaintiff”).
An issue arose, when Mr Ward in May 2017, approached Ms Tarnawskyj to purchase the claimed land for $50,000. The Plaintiff brought these proceedings claiming possessory title over the claimed land. If they have possessory title, the land belongs to them and Mr Ward will not be able to buy it.
The following was the Plaintiff’s claimed use of the claimed land:
It should be noted that Council rates were not being charged over the claimed land until August 2016.
Mr Ward’s and Ms Tarnawksyj’s claim was that the Plaintiff’s use of the claimed land was covered under the right of way granted to the owner of number 7.
Principles
The Plaintiff contends that the claimed land, or at least a substantial portion of it, has been possessed adversely to the registered proprietor, for many years, such that the limitation period of 12 years for an action to recover the land has expired, in other words, title held by the registered proprietor has been extinguished. The various facts stated above by the Plaintiff are relied upon in support of the adverse possession claim.
In Powell v McFarlane (1979) 38 P&CR 452 [at 470 to 472], it was noted:
In Mulcahy v Curramore Pty Ltd [1974] 2 NSWLR 454 [at 475], Bowen CJ in Eq stated “possession which will cause time to run under the Act is possession which is open, not secret, peaceful, not by force and adverse, not by consent of the true owner”.
Based on the above, Darke J stated that it should be noted that number 7 had a right of way over the claimed land. The exercise of this right would not support an adverse possession claim. The Plaintiff contends however, that the acts it relied upon were not authorised by the right of way i.e. only the right to pass and repass.
In Laris v Lin (No2) (2016) 18 BPR 35; 917 [2016] NSWSC 560 [at 118], Slattery J stated “a right of carriageway which authorises passing and re-passing to and from the dominant property does not authorise parking on the site of the easement …”.
Finding
The title owner of the claimed land had not had any relevant dealings or contact with the claimed land until recently.
The Plaintiff has established a possessory title in respect of part of the claimed land. The Plaintiff has established the existence of factual possession and an intention to possess for a period of at least 12 years over all of the claimed land save for the part that falls within what may be described as the concrete pathway used by Mr Ward in Number 5. The activities of the owners and tenants of number 7 were not authorised by the terms of the right of way and could not be said to fall within the scope of any ancillary rights conferred by the easement.
The acts of possession described above showed a sufficient degree of exclusive physical control over those parts of the claimed land to warrant the conclusion that the Plaintiff was in factual possession of those parts.
What to take away from this case?
It’s clear from the above that when you are an owner of property you must ensure you have regular contact with the property even just for maintenance purposes and where easements are concerned ensure those easements are being used for the stated purposes.
Gillian Kirwan
Lawyer
Paul Carroll
Partner