The Washington State Legislature recently passed HB 1026, which changes provisions relating to adverse possession claims. Effective July 1, 2012, the prevailing party in an adverse possession claim may be required to reimburse the holder of title on record, or a subsequent purchaser, for part or all of any real property taxes and assessments that the holder of title paid during the period of adverse possession.  However, the court may also require the prevailing party to pay to the county treasurer part or all of any real property taxes and assessments levied after the filing of the claim but remain unpaid at the time of judgment.

Further, the court may award costs and reasonable attorneys' fees to the prevailing party. Because boundary disputes between neighbors are rarely handled “neighborly,” this new legislation will hopefully serve as greater incentive for more reasonable settlements to occur when property disputes arise.