Statute of limitations

If you have been using something that belongs to someone else for a long time, and in doing so you behave as if you were the owner, you may have become the owner by prescription. In the Netherlands, we know two types of prescription:

• in good faith, then you did not know and did not need to know that you are not an owner;
• in bad faith, in which case you knew you were not the owner, but you always behaved as such.

With immovable property and other registered property as well as stuff, it is possible to become an owner by prescription. In the case of immovable property and other registered property, a ten-year period applies to a good faith prescription (acquisitive prescription). In the case of a bad faith prescription (liberatory prescription), a twenty-year period applies. This period can be interrupted, and then actually starts running again, if the true owner indicates that you are wrongfully using something belonging to him.

With immovable property and other registered property, it is rare that someone is acting in good faith. This is because you are supposed to know what is in the public registers. If an investigation in the land registry would reveal that you are not the owner, you are presumed to be in bad faith.

Apart from the time limits, it is so that you must have really behaved as an owner and this must also have been known to third parties. This is the case, for example, if you move your fence up to a piece in the neighbour's garden and thereby start using part of the neighbour's garden, without the neighbours' approval.

The limitation period starts to run on the day after the day it was (or could have been) known to the original owner that he lost possession of the land to another person. The limitation periods continue to run for the benefit of the person who continues the unlawful possession and for the benefit of the true owner's successors in title, respectively. Suppose the buyer of an immovable property buys a garden including a strip of land that the previous owner took possession of from his neighbour 16 years ago. For the buyer in this example, it takes only four years before he can invoke acquisition of ownership by prescription.

Even in old beneficial ownership transfers, the beneficial owner may have also become the legal owner by prescription. Since the transfer of ownership by prescription is not subject to transfer tax, it is a good idea to have our firm assess the prescription. This is because whether there is a statute of limitations depends on facts and circumstances.

If there is indeed a prescription, we can draw up a statement of prescription and register it in the land register. Then the registered property of which you have become the owner by prescription will also be registered in your name in the land register.

For more information on prescription, please contact us. We will be happy to help you.