Abandoned property is generally defined as a dormant or vacant item of value that has been untouched and neglected for a long time. A specifically denoted period of dormancy must pass before a state registers any given unclaimed property as abandoned. Investors always find claiming abandoned properties particularly appealing as the lack of an original owner allows the new owner to alter the property in whichever way they wish to.

What is an abandoned property?
A given property is generally considered abandoned if the original owner intends to leave it behind and does not intend on returning to it. State laws determine the consideration of a property as abandoned, and while the dormancy period varies for the state, a minimum of two years must pass after it is registered as unclaimed. Some states indefinitely hold a property for the owner, while some culminate the property as part of the state through a process known as escheatment. These properties are later auctioned or converted to cash on account of safekeeping.

Types of abandoned properties
Abandoned properties can be either tangible or intangible. A maximum number of abandoned properties can be found as land, houses, safe-deposit boxes, stocks, annuities, life insurance, unpaid wages, certificate schemes, etc. Bank accounts and statements are also termed abandoned properties. There is a separate dormancy period for different kinds of properties. For example, in one state, a bank account can be dormant for three years before getting handed over to the state, while in another, the dormancy period for deposit accounts can be five years.

Pros and cons of buying abandoned property
The major benefit of eyeing an abandoned property is that there’s less competition. As the property is abandoned and most people are aware of it, the number of attracted customers will be less. If there has been a lack of activity over a stipulated period, the property’s cost may be quoted at a lower price than that of the original. But this drop in price will lead to high costs for repairs and renovations. Another con is that there will be a particular state of ambiguity surrounding the property due to its abandonment.

Laws surrounding abandoned property
Initially, there was a certain amount of skepticism about abandoned property rights. But people later understood that these laws had been implemented to protect and safeguard the consumer and to hand over possessions to their rightful owners. Previously, these properties would have been turned over to financial institutions. In such cases, there would be a vacant spot for a central authority to recover unclaimed or abandoned property. Now, it is widely accepted that property will be utilized for the public good rather than serving the private sector.

Reviving abandoned property
Along with state governments, the National Association of Unclaimed Property Administrators (NAUPA) has created a range of databases to help consumers find abandoned properties from wherever they have lived over the years. The rightful owners can file a claim on the allotted websites for any abandoned property. Processes have been devised to locate the ownership, and it is ensured that injustice is not served to the rightful owners and tenants of the property. However, these processes have to abide by state law, so little can be done when the time between recovery and abandonment is more than the stipulated time.

Finding abandoned property
There are many methods for finding an abandoned property, out of which scrolling around town and observing is the easiest and most viable one. Getting in touch with a real estate agent will help as they know the market. Apart from this step, you can keep checking the local directories and look for any abandoned properties in reports. All of these methods are convenient and suitable for customers, but you can even resort to having a look at records in the local government office to determine whether unpaid taxes are attached to the property. One catch to keep in mind is that your deed can be considered void if the previous owner repays the taxes within the period.

Ways to buy abandoned property
The process of buying an abandoned property is like any other way of purchasing a property. After tracking the original owner, ensure that your finances are in check. Have a clear understanding of the property in question by checking with your bank to see if your financial condition is strong enough to withstand this new purchase. You can also check for secure financing through banks and capitalists. However, you need to understand that the redecoration and revival costs for that property will be more than what it generally is.