Sydney squatter may get a $1 million terrace for free

Oh, and the squatter is apparently a banker.

Terrace houses on Caroline Street in Redfern. Source: Bloomberg, Getty Images

A squatter is living in an abandoned terrace in Sydney’s inner city suburb of Redfern. The squatter – who is a banker – wants to take ownership of the million-dollar property without paying for it.

Thanks to an archaic law, another wealthy person may be able to exploit the property system. If so, it could be the beginning of people taking over unoccupied houses and million dollar properties for free.

Neighbours on either side of the Elizabeth Street property have spoken to the banker who says his name is both Andrew James and Andy Robert. His neighbours reported him to police for trespassing, but only the owner can make that complaint so nothing has been done about his inhabitance.

The terrace has an overseas-based owner who can’t be traced; he is a Chinese-born man called Paul Fuh. The house was purchased in 1991 but there’s been no sign of Fuh since 2007 so James/Robert is planning to make a claim of “adverse possession” and take ownership of the house.

"The Limitations Act 1969 provides that a claim of adverse possession may be made against a Common Law owner after a period of 12 years. This however relates to adverse possession commencing after 1 January 1970 and does not apply to any applicant before 1982 where a period of 20 years is required," the NSW Government Land and Property Information website says.

"The effect of adverse possession is to destroy the title of the person who is dispossessed, however, it does not destroy the rights of other persons who have an enforceable interest in the land such as easements or restrictive covenants."

Paul Wilton, one of the neighbours, believes the banker hired a locksmith and entered through the front door of the house. Wilton’s been told by James/Robert that he’s planning to renovate the property and rent it out. The other neighbour, Gerard Knapp worries what domino effect this may cause.

“Someone described it to me as ‘legalised theft’ and, with thousands of properties in Sydney bought by overseas investors, it could lead to real lawlessness,” Knapp told Domain.

The only people who can prevent this from occurring is the City of Sydney council, but it’s a very confusing situation. Really the issue is between the owner and anyone living in the property. With the owner vanished that’s not really an option either.

Ultimately, under the Local Government Act, the council can sell the land if charges on it are unpaid for more than five years. It looks like the situation is a little more complicated than James/Robert just taking adverse possession of the house, but it doesn't sound completely impossible either.

The only certainty right now is that there is a banker squatting (or living) in a million-dollar Sydney terrace for free.

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