It's easy to imagine how lots of different types of odd scenarios could arise, but if people stop feeling secure in their homes, they'll stop paying for them.
If someone steals your car and then sells it, the police still return it to you if they find it. This would be like allowing the car to stay with the person who bought it from the thief.
Even if this isn't a widespread problem (yet?), it's another straw on the camel's back. The camel being our civil society.
this territory is moderated
I agree. I remember there was an old expression that wasn't close to being accurate, but is sometimes relevant: Possession is 9/10s of the law. I have had a few instances over the years where a landlord would let a tenant rent a place in a bad neighborhood for close to nothing. The signed lease protected the landlord and the tenant ensured that squatters didn't destroy the place. Obviously this is unusual, and involves a large degree of trust.
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In situations where the owner gets arrested for "wrongful eviction", despite the squatter having no evidence of being a tenant, how are the police justifying having probable cause to make that arrest?
Do they not have to or is simply being in possession of the property enough evidence of tenancy?
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I don't know. One thing I can tell you is it matters a whole lot where you are. Staten Island outcomes will be far different than the Bronx. On Long Island landlords will be given the benefit of the doubt.
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