International Review of Law and Economics 24 (2004) 1–13 Good-faith error and intentional trespassing in adverse possession Jeong-Yoo Kim ∗ Department of Economics, Kyung Hee University, 1 Hoegidong, Dongdaemonku, Seoul 130-701, South Korea Abstract In this paper, I assert that refusing to award title to an intentional encroacher gives an encroacher the incentive to remain ignorant of the true boundary, thereby possibly harming efficiency. Intuitively, if there remains much uncertainty about the title unresolved, it is very likely that a trespasser’s specific investments become futile as a result of an injunction due to the original owner’s ejectment suit, which is the main source of inefficiency. © 2004 Elsevier Inc. All rights reserved. Keywords: Intentional trespassing; Good-faith error; Adverse possession; Efficiency 1. Introduction Most countries have statutes of limitations on trespass. If the statute of limitation on trespass expires before the owner complains, the property right may be transferred from the owner to the trespasser, and we say that the trespasser has obtained title by adverse possession. That is, adverse possession is a way of acquiring title to real property by using it for a long period of time without timely objection by the original owner. For example, if someone occupies land, he can obtain title by adverse possession if the original landowner does not sue for trespass within the limitation 1 and several other requirements are met. 2 Interestingly, a person’s right to acquire real property by adverse possession begins with the wrongful occupation of another person’s property. ∗ Tel.: +82-2-961-0986; fax: +82-2-961-0986. E-mail address: jyookim@khu.ac.kr (J.-Y. Kim). 1 It is 20 years in Korea, 12 years in England. In the US it varies generally from 5 to 20 years, depending upon the state. 2 The possession must be open for all to see, notorious, exclusive, hostile to the actual owner and continuous. 0144-8188/$ – see front matter © 2004 Elsevier Inc. All rights reserved. doi:10.1016/j.irle.2004.03.001