What is "adverse possession" in the context of real estate?

Adverse possession is indeed a legal principle that allows a person to claim ownership of land under specific conditions. This principle applies when an individual occupies land for an extended period without the permission of the rightful owner, and they do so in a manner that is open, notorious, exclusive, continuous, and adverse to the interests of the original owner. Each of these elements is crucial; for example, the occupation must be visible and obvious, so the original owner is aware of the possession.

Through adverse possession, the occupying party may eventually gain legal title to the property, effectively transferring ownership rights from the original owner to the possessor after meeting the statutory requirements, which vary by jurisdiction. This legal doctrine is rooted in the idea that land should be put to productive use, and if an owner neglects their property, it may benefit someone who does use it.

The other choices presented do not accurately represent the concept of adverse possession. A lease agreement is a contract between a landlord and tenant, appraisal methods pertain to valuing property, and exclusive rights are typically associated with property ownership and do not encompass claims made through adverse possession. Thus, the definition relating to ownership claims under specific conditions is the only accurate description of the term.