Adverse Interest

Definition - What does Adverse Interest mean?

An adverse interest is an interest that a party has that is in conflict with, or is contrary to, the interests of another party. Adverse interests are very common in real estate, when two or more parties have competing interests in a property. Often, such disputes are settled in court.

Justipedia explains Adverse Interest

A situation where there could be an adverse interest would be if someone inherited a property through a will, yet a neighbor still possessed an easement to the property. So, in this situation, the neighbor would have an adverse interest in the property, even though the property was being passed on to the original person. Often, when people are buying property, they will hire a professional to investigate the property to make sure that there are no adverse interests in it.

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