Under the new procedures, a squatter who has been in exclusive possession for ten years can apply for registration, but the registered proprietor’s objection will override that application (provided the proprietor begins proceedings or physically ejects, the squatter within two years of being notified of the squatter’s claim). In principle, therefore, adverse possession of registered land will now become extremely rare (although remember that the old regime remains intact for unregistered land).

There are exceptions to this, and one of these is likely to be relevant when a neighbour encroaches over a boundary. In that situation, a squatter may claim the freehold title and defeat the paper title of the registered proprietor if the squatter (ie the neighbour) reasonably believes that the land belongs to him. There are four requirements: the land must be adjacent to the applicant’s own land; the boundary between the applicant’s land and the claimed land must not have been determined under s60 LRA 2002; the applicant must reasonably believe that the land belonged to him; and the neighbouring (claimed) plot must have been registered for at least one year before the application is made.

Note that this exception does not come into force until 13 October 2004. Accordingly, there is a grace period until October. So, if you are involved in any situations in which there is a suggestion that a neighbour is encroaching over the boundary of registered land, then advise your client to take preemptive steps before October. In practical terms this would probably be an action for ejectment. See note in [2004] SJ 141. © Practical Lawyer