Legislative Update - Squatters Bill

Over the last couple of years you’ve likely heard a lot of talk, especially coming from the West Coast, about squatters and the idea of “squatters’ rights”. There were some horror stories out of California about people breaking into high-dollar homes and taking up occupancy and tying up the property for years because courts would not remove them.

And there’s no doubt that here in Kentucky certain people have attempted to abuse the idea of “squatters’ rights”. In most cases, they’ve moved in with the consent of a current tenant, then refused to leave later on, claiming that they have “squatters’ rights” to continue their occupancy. In rare cases, they’ve simply broken into the home and begun to live there. In all cases, they do not have the property owner’s consent to live there and the property owner wants to remove them. So how can that be done?

There are two options. The first option is always to call law enforcement because without a lease that allows them to live there or some agreement with the owner or a tenant, they are simply trespassers – people on the property who have no legal right to be there.   

But, as you might imagine, law enforcement is often hesitant to get involved because the squatter rarely admits to being a squatter – they typically claim that someone gave them permission to be there. So, to avoid their own liability, law enforcement tells the owner that this is a civil matter and that they need to evict the person.

And that leads to the second option – filing a forcible detainer action against the occupant. But that leads to questions about whether you need to give a notice to vacate and, if so, how much notice must be given.

Thankfully, the state legislature is attempting to give property owners and law enforcement legal backing to remove squatters without unnecessary delay. Republican Representatives Emily Callaway from Louisville and Steve Bratcher from Elizabethtown have sponsored House Bill 250 to address this issue. Click here to read HB 250 in its entirety.

ELIGIBILITY CRITERIA

HB 250 allows a property owner to request that law enforcement immediately remove a person who is unlawfully occupying their residential property or any other structure on the property if these seven (7) criteria are present:

1.      The property being occupied includes a residential dwelling;

2.      An unauthorized person has unlawfully entered and remains the property;

3.      The property was not open to members of the public at the time the unauthorized person entered;

4.      The owner has directed the unauthorized person to leave the property;

5.      The unauthorized person is not a current or holdover tenants pursuant to a written or oral rental agreement authorized by the owner;

6.      The unauthorized person is not an immediate family member of the owner; “Immediate family member" is defined as a spouse, parent, sibling, child, mother-in-law, father-in-law, son-in-law, daughter-in-law, grandparent, or grandchild;

7.      There is no pending litigation related to the property between the owner and any known unauthorized person.

PETITION FOR REMOVAL

If the situation meets these seven criteria, the owner may fill out and sign under penalty of perjury a new form that will be created requesting that law enforcement (police, sheriff, constable, etc.) remove the occupant. Upon receipt of the form, the law enforcement officer must verify ownership by checking property records and the ID of the person with the petition. If ownership is verified, law enforcement is to serve a notice to immediately vacate the property and return possession to the owner.

IMMUNITY

Law enforcement may arrest any occupant for trespass, outstanding warrants, or any other legal reason. The bill provides immunity for any law enforcement officer acting in good faith in accordance with the terms of the bill. The owner has immunity from any damage or loss to the occupant’s personal property unless the removal is later found to be unlawful.

CAUSE OF ACTION FOR REMOVED OCCUPANT

The bill provides a claim for any occupant who is unlawfully removed to sue the owner and recover possession of the premises, any actual losses incurred as a result of the removal, statutory damages of three times the fair market rental value of the premises, and any court costs and attorney’s fees. Such a claim must be filed within 60 days of the removal.

NEW CRIMINAL OFFENSE – FRAUDULENT LEASE

The final part of the bill creates a new criminal offense for anyone who presents a fraudulent document that purports to be a valid lease, deed, or other such document. The offense would be a Class A misdemeanor, which is punishable by up to one year in jail.         

QUESTIONS

HB 250 looks like a fantastic resource that will help property owners get their properties back from squatters in a timelier manner. However, there are several questions about how it will be applied:

1.      What does it mean to have unlawfully entered? Would this cover a guest who was given permission to stay for the weekend but refused to leave?

2.      Would the bill allow removal of a person who came during an open house, when the property was open to the public, but refused to leave?

3.      Will law enforcement officers remove occupants who claim to have an oral rental agreement with the owner – because this is exactly what many squatters claim?

4.      Who agreed to exempt “in laws” from being removed? That’s my attempt at humor.

CONCLUSION

Although the devil is always in the details, HB 250 seems to be a fantastic bill for property owners and managers. If you agree, be sure to reach out to your state legislators and let them know to support this bill and push for it to move forward.

That’s it for today. As always, if you need help on something, shoot me an email at smarshall@tripleslaw.com. If you need a lease package, I have you covered. I’ll be glad to let you look at it before you purchase.

Cheers!