The Legal Light Justin Stack Squatter's rights win slice of precious harbourside land The NSW Supreme Court has awarded a triangular sliver of precious harbourside land to the owner of a dilapidated cottage under so-called squatter's rights. The 3.35 square metre slice of land was partly under the kitchen of an old Balmain weatherboard cottage, which sold for $1.9 million in 2023 after the death of its elderly owner. It was being sold by his daughter. Both the previous owner and the new owner assumed the tiny parcel of land sandwiched between the cottage and a neighbour's back yard was part of the property. But a survey report prepared for the local council before redevelopment by the new owner discovered the sliver of land was not legally part of the property. Lesley Dingley, property expert at Stacks Law Firm, said the subsequent court case raised some interesting points in property law. "The report found the small parcel of land remained under what is known as 'Old System Title' and had not been converted to the newer, more common Torrens Title," Ms Dingley said. The matter went to court when a neighbour claimed rights to the tiny bit of land. However, the neighbour later dropped the claim. The buyer of the property applied to have the slice of land converted to Torrens Title and to be registered as its owner. The survey traced descendants of the original 1872 owner of the tiny parcel of land to today, but the land had never been brought under the provisions of Real Property Act 1900. Ms Dingley explained the elderly man lived in the cottage from when he bought it in 1965 until his death in 2020. The new owner claimed that because the previous owner had occupied the sliver of land for 55 years, it had become the "adverse possession" of the elderly man - commonly known as "squatter's rights"- and was therefore part of the whole property. "Adverse possession in section 27 of the NSW Limitation Act and Part 6A of the Real Property Act 1900 allows someone to claim ownership of land if they have openly occupied it without the owner's permission for 12 years or longer, provided they have possessed it exclusively, continuously, paid rates due on the land, planted crops or shown other use of the land," Ms Dingley said. The court found the elderly former owner of the home had obtained rights to title of the strip of land in 1985 by reason of adverse possession for more than 20 years, and therefore it was part of the property the new owner had bought. STACKS LAW FIRM Lesley Dingley Commercial Lawyer 02 6592 6592 taree.stacklaw.com.au Partners in life The Legal Light Justin Stack Squatter's rights win slice of precious harbourside land The NSW Supreme Court has awarded a triangular sliver of precious harbourside land to the owner of a dilapidated cottage under so - called squatter's rights . The 3.35 square metre slice of land was partly under the kitchen of an old Balmain weatherboard cottage , which sold for $ 1.9 million in 2023 after the death of its elderly owner . It was being sold by his daughter . Both the previous owner and the new owner assumed the tiny parcel of land sandwiched between the cottage and a neighbour's back yard was part of the property . But a survey report prepared for the local council before redevelopment by the new owner discovered the sliver of land was not legally part of the property . Lesley Dingley , property expert at Stacks Law Firm , said the subsequent court case raised some interesting points in property law . " The report found the small parcel of land remained under what is known as ' Old System Title ' and had not been converted to the newer , more common Torrens Title , " Ms Dingley said . The matter went to court when a neighbour claimed rights to the tiny bit of land . However , the neighbour later dropped the claim . The buyer of the property applied to have the slice of land converted to Torrens Title and to be registered as its owner . The survey traced descendants of the original 1872 owner of the tiny parcel of land to today , but the land had never been brought under the provisions of Real Property Act 1900 . Ms Dingley explained the elderly man lived in the cottage from when he bought it in 1965 until his death in 2020. The new owner claimed that because the previous owner had occupied the sliver of land for 55 years , it had become the " adverse possession " of the elderly man - commonly known as " squatter's rights " - and was therefore part of the whole property . " Adverse possession in section 27 of the NSW Limitation Act and Part 6A of the Real Property Act 1900 allows someone to claim ownership of land if they have openly occupied it without the owner's permission for 12 years or longer , provided they have possessed it exclusively , continuously , paid rates due on the land , planted crops or shown other use of the land , " Ms Dingley said . The court found the elderly former owner of the home had obtained rights to title of the strip of land in 1985 by reason of adverse possession for more than 20 years , and therefore it was part of the property the new owner had bought . STACKS LAW FIRM Lesley Dingley Commercial Lawyer 02 6592 6592 taree.stacklaw.com.au Partners in life