Adverse possession—sometimes called squatter's rights—occurs when a person or entity who does not own a certain piece of real property occupies or uses it in a way that is adverse to the owner of the property—meaning the use is in conflict or at odds with the property owner’s interests.

If this adverse possession or use of the property meets the legal standard for adverse possession—often described as use that is continuous, exclusive, hostile, open, and notorious—and continues for the prescribed period of time (usually specified in the state statute)—the person or entity adversely possessing or using the property will acquire ownership of the property (title). This ownership will result in the changing of boundary lines.

Because the required adverse possession must be open, obvious, and adverse to the owner’s interests, title may only be acquired by adverse possession to the portion of property that is used in that way.

Adverse possession laws vary from state to state and may be located in a state’s court opinions (also known as common law or case law) or, more often, in its statutes.

In North Carolina, adverse possession laws allow a person to claim ownership of a property if they have occupied it in a way that is hostile, actual, open, exclusive, and continuous for a statutory period. The standard period required for adverse possession in North Carolina is 20 years, but it can be reduced to 7 years if the adverse possessor has a 'color of title' (a claim founded on a written instrument like a deed or a will, which is defective) and pays property taxes. North Carolina General Statutes § 1-38 to § 1-54 outline the specifics of adverse possession. The claimant must use the property in a manner that is visible and obvious, so the legal owner has a chance to take action if they wish to challenge the adverse possession. If the adverse possessor successfully meets all the legal requirements for the prescribed period, they may be able to acquire legal title to the property, potentially altering the boundary lines. It is important to note that adverse possession is a complex area of law, and anyone considering or contesting a claim of adverse possession should consult with an attorney to understand the specific implications and requirements.