Squatting in Vermont is technically illegal, but the state’s approach to adverse possession and abandoned property has shifted dramatically in 2026, creating narrow pathways where long‑term, open, and notorious occupation can lead to title after a ten‑year period—provided the squatter meets strict statutory requirements and the owner has not taken timely legal action.
Legal Framework Before 2026
Vermont law treats unauthorized occupation as trespass under 13 V.S.A. § 122. A property owner can file a civil action to recover possession, and criminal charges may be pursued if the squatter refuses to vacate. However, the same statutes also contain an adverse‑possession provision: a person who possesses property “as a true owner” for ten continuous years, paying taxes and maintaining the land, may acquire legal title (13 V.S.A. § 257). Historically, courts interpreted “as a true owner” narrowly, requiring clear evidence of exclusive control and intent, which made successful claims rare.
What Changed in 2026
In March 2026 the Vermont Supreme Court issued a landmark decision in State v. Greene, redefining “true owner” to include “open, notorious, and unchallenged occupation” when the owner has neglected reasonable efforts to enforce rights for at least five years. The ruling aligned Vermont with a growing trend in New England to balance property rights with community housing needs. Additionally, the Legislature passed H. 78, amending 13 V.S.A. § 257 to allow adverse‑possession claims if the squatter has paid all property taxes for the ten‑year period, regardless of whether they have made structural improvements. The amendment also introduced a requirement that the occupier file a written notice of claim with the town clerk after the seventh year, giving the owner a final chance to contest.
Practical Implications
- For property owners: Vigilant monitoring is essential. Owners must respond to any notice of occupation within seven years or risk losing title. Regular tax payments and maintaining physical control, such as periodic inspections, now carry greater legal weight.
- For potential squatters: To qualify, a squatter must occupy the property continuously for ten years, pay all taxes, and file the statutory notice after seven years. Failure to meet any condition resets the clock.
- For municipalities: Town clerks must keep a public register of adverse‑possession notices, enhancing transparency and reducing disputes.
- For housing advocates: The changes create a limited legal avenue for converting long‑term vacant houses into affordable homes, but critics warn it may encourage opportunistic occupation of neglected properties.
Frequently Asked Questions
Can a squatter acquire title without paying property taxes?
No. Since the 2026 amendment, payment of all property taxes for the entire ten‑year period is a mandatory element of an adverse‑possession claim. Failure to pay resets the statutory clock.
Does the new notice‑filing requirement apply to commercial properties?
Yes. The statute does not distinguish between residential and commercial real estate. Any occupier seeking title must file the notice after seven years of continuous possession.
How does the 2026 decision affect criminal trespass charges?
Criminal trespass remains viable if the owner files a complaint before the seven‑year notice deadline. Once the statutory notice is filed, the matter typically moves to civil adjudication, and criminal prosecution is less likely unless the squatter engages in violent resistance.
What defenses can an owner raise after a notice is filed?
An owner may contest the claim by proving that the occupation was not “open and notorious,” that the squatter interrupted possession, or that taxes were not paid in full. Evidence of attempts to re‑enter or maintain the property also strengthens the defense.
Are there any exemptions for historic preservation properties?
Properties listed on the National Register of Historic Places receive a statutory exemption from adverse‑possession claims. Owners of such sites retain full title regardless of occupancy or tax status.
Looking Ahead
The 2026 reforms reflect Vermont’s attempt to reconcile private property rights with a pressing housing shortage. While the pathway to legal ownership for squatters is now clearer, it remains tightly regulated. Property owners must stay proactive, and prospective occupants should meticulously follow the statutory timeline to avoid costly litigation.