We were looking at a cottage property... the seller had given the neighbor rights to use the driveway because the neighbor had to put in a new septic bed which used up the neighbors driveway. No legal right of way was ever drawn up. While looking at the seller's survey we also noted not only was the neighbor using the driveway, but was also using the driveway as a right of way, he also technically only had 5 ft in front of his garage to use but was also using approx 10 ft of the seller's property because there was a tree somewhat situated in the fork in the driveway where the 2 properties parking area's divided.

The neighbor is claiming some sort of squatter's rights, and apparently gets use forever (I'm assuming it wouldn't carry over to any new owner's of neighbors property) We pulled out of this for the above reason but really feel ripped off.

Can you tell us if what we were told was true
Thanks
Cathy

There is no "squatters right" he could, if he meet eminent domain laws of your state, have a right to go to court and claim this.

If you want to buy it, make a requirement that this land issue is settled prior to buying.

Since no location is given, just as in general, it can only be claimed if the person is doing it without the knowledge or permission of the land owner, In this case permission was given. Depending on the available area for a drive way, they may get allowed to keep using the drive way

And I would not do it without a new survey and an agreement that the seller will be responsible for any legal costs if there is claim against the property.

Also you should buy title insurance if you buy.

He may have a case depending on what state you live in, how long it has been used by him and if anyone else heard the verbal permit. Get in writing what you were told and have an attorney look into it.

"Squatters rights" is more properly know as "adverse possession". Adverse possession laws vary from state to state but all encompass the concept of taking property adversely to the interest of the owner and without permission of the owner.
What constitutes adversely taking property of another and the length of time such adverse possession must exist varies.
If permission is given by the owner adverse possession cannot exist.

The term here is adverse possession. If the neighbor was using the driveway for a long enough period (dictated by local laws), then they could continue to claim the right to use even after a sale.

... The neighbor is claiming some sort of squatter's rights, and apparently gets use forever ...

Has the issue been litigated or is the neighbor merely claiming?



... ... I'm assuming it wouldn't carry over to any new owner's of neighbors property...
...

You are assuming wrong. If the neighbor has established a claim by adverse possession, it carries over to benefit whoever buys the neighbor's property.