S1868

An Act concerning adverse possession, amending N.J.S.2A:14-7 and N.J.S.2A:14-8 and repealing N.J.S.2A:14-30 and N.J.S.2A:14-31.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. N.J.S.2A:14-7 is amended to read as follows:

2A:14-7. Every action at law for real estate shall be commenced within 20 years next after the right or title thereto, or cause of such action shall have accrued. Twenty years' actual possession of any real estate excepting woodlands or uncultivated tracts, and 30 years' actual possession of woodlands or uncultivated tracts, uninterruptedly continued by occupancy, descent, conveyance or otherwise, shall, in whatever way or manner such possession might have commenced or have been continued, vest a full and complete right and title in every actual possessor or occupier of such real estate, woodlands or uncultivated tracts, and shall be a good and sufficient bar to all claims that may be made or actions commenced by any person whatsoever for the recovery of any such real estate, woodlands or uncultivated tracts.

(cf: N.J.S.2A:14-7)

2. N.J.S.2A:14-8 is amended to read as follows:

2A:14-8. a. No person or body politic or corporate shall be sued or impleaded by the state of New Jersey for any real estate, or for any rents, revenues, issues or profits thereof, except within 20 years next after the right or title thereto or cause of such action shall have accrued.

b. Twenty years' actual possession of any real estate uninterruptedly continued by occupancy, descent, conveyance or otherwise shall, in whatever way or manner such possession might have commenced or have been continued, vest a full and complete right and title in every actual possessor or occupier of such real estate, and shall be a good and sufficient bar to all claims that may be made or actions commenced of any nature whatsoever by the State of New Jersey for the recovery of such real estate.

(cf: N.J.S.2A:14-8)

3. N.J.S.2A:14-30 and N.J.S.2A:14-31 are hereby repealed.

4. This act shall take effect on the second anniversary following the date of enactment and shall apply to interests in land measured on and after the effective date.

STATEMENT

This bill is intended to clarify the statutes concerning adverse possession and promote the stability of land titles in light of the New Jersey Supreme Court's decision in J & M Land Co. v. First Union Bank, 166 N.J. 493 (2001).

Under the current statutes governing adverse possession, N.J.S.A.2A:14-30 and 2A:14-31, a possessor is vested with title to real estate after 30 years' actual possession of the real estate, unless the property consists of woodlands or uncultivated tracts. Title vests to the possessor of woodlands or uncultivated tracts after 60 years' possession. However, two other statutes seem to conflict with N.J.S.A.2A:14-30 and 2A:14-31. Under the provisions of N.J.S.A.2A:14-6, every person with any right or title of entry into real estate must make such entry within 20 years after the right or title accrues; under N.J.S.A.2A:14-7, every action for real estate must be commenced within 20 years after the cause of action accrues. In the J & M case, the plaintiff had had 39 years' possession of a tract of uncultivated land that actually belonged to First Union Bank, an adjoining landowner. When J & M sought a court declaration that it had acquired the land through adverse possession, the court turned it down, ruling that the 60-year period of N.J.S.A.2A:14-31, and not the 20-year time period of N.J.S.A.2A:14-7, applies.

As a result of this decision, it is unclear how title is held after an adverse possessor has occupied land more than 20 years but less than 30 years (or, where applicable, 60 years). The Supreme Court noted that the Legislature might choose to clarify the matter by enacting appropriate legislation. 166 N.J. at 521.

This bill addresses the problem by repealing N.J.S.A. 2A:14-30 and 2A:14-31 and by amending N.J.S.A. 2A:14-7 and 2A:14-8 to provide that title may be acquired by an adverse possessor after 20 years in most cases, and after 30 years in the case of woodlands or uncultivated lands. (The historical rationale for treating woodlands and uncultivated lands differently than developed lands has been that the record owner may experience difficulty in determining the precise location and boundaries of uncultivated land.)

Thus, under the bill, once the applicable time period has expired, the record owner is not merely barred from attempting to recover possession; his title is extinguished and title is vested in the adverse possessor.

Enactment of this bill would also bring New Jersey's statutory scheme in line with that of most other states, in which the relevant time period for adverse possession is 20 years or less.