North Carolina law allows people who trespass and encroach on another's land for a minimum 20-year time period to develop an ownership claim to the property. It is entirely legal to sell a house with tenants in North Carolina, even if still occupied at closing.Adverse possession lets someone claim title to real property held without permission for a statutory period. Learn more about the requirements in North Carolina Under North Carolina law, buyers of real property take that property subject to any existing leases. You are going to need documentation that you have satisfied all the elements of adverse possession in your jurisdiction. In North Carolina, a squatter can file for Adverse Possession of the property after living there for at least 20 continuous years. There's a lot of risk associated with post closing possession, even if you take all the precautions available to you. Delaying closing is the best option. In North Carolina, squatter's rights encompass laws that may lead to acquiring legal ownership of property through adverse possession.