Facts: A nonprofit, tax exempt religious organization owned a property. The neighbor fenced in and improved a portion of the organization’s property. The neighbor maintained consistent and notorious possession of the fenced in property for over five years. The neighbor did not pay property taxes on the improved portion of the property.

Claim: The neighbor sought title to the improved portion of the property, claiming they owned the property through adverse possession since they made and openly maintained improvements on the property for over five years.

Counter claim: The owner claimed the neighbor did not acquire title to the property through adverse possession since the neighbor did not pay property taxes on the improved portion of the property.

Holding: A California court of appeals held the neighbor acquired title to the improved portion of the property through adverse possession, despite the fact the neighbor did not pay property taxes, since the tax exempt, nonprofit religious organization  was not required to pay  property taxes. [Hagman v. Meher Mount Corporation (2013) 215 CA4th 82]

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Legal Aspects of Real Estate Ch. 30: Real estate can be stolen