Property, Ownership, and Possession
In a general sense, we talk about “property” quite often. Everything tangible & intangible (virtual assets) that surrounds us can be referred to as property to an extent.
What turns ordinary things into properties is their value which may be intrinsic or generated. More specifically, property usually means land, buildings, estate, shares, etc. In each way, property is a source of wealth. The concept seems easy to grasp; however, the legal concept surrounding property is quite complex, containing jural relationships that a person shares with their holdings.
What is a Property?
In a broader sense, property covers anything that a person can possess. In other words, the property is an object that a person can have ownership over. Anything around us can be considered a property.
Furniture appliances, vehicles, and real estate are all examples of property. Other than these, non-materialistic items such as discoveries, ideas, designs, etc., are also properties. Property is basically anything that has some monetary or personal value.
Types of Properties
Property can be classified using many different criteria. Based on these criteria and division, essential characteristics and data of the property can be derivated.
Movable and immovable property
As the name suggests, the movable property includes those items which can be moved from place to place, like vehicles and furniture. Immovable property usually consists of real estate. This kind of division is clearly defined under the transfer of property act of 1882. Rules like taxation registration and transfer are usually decided based on whether a property is movable or immovable.
Tangible and intangible property
Tangible property refers to those items which can be physically perceived. Contrary to this, things that we cannot feel physically come under the category of intangible property. This includes patents, franchises, logos, designs, etc. Intellectual property is an instance of intangible property.
Public and private property
Perhaps the most widely understood and used term, public property refers to the property owned by the government and available for public use. Bus stands, railways, and hospitals are a few good examples. Personal property refers to the property owned by individuals or organizations. The owners of personal properties exercise total control over their holdings. Homes, buildings, and land are a few examples of personal property.
Intellectual property
As mentioned above, intellectual property is a type of intangible property. It includes items born from intellect and creativity that usually have a high value. Some common examples include lyrics of songs, quotes, logos, etc.
The chemical formula and logo of the world-famous chips brand Pringles comes under intellectual property.
The Concept of Ownership
Ownership is an element closely intertwined with the concept of property. Hebert defined ownership as a bundle of four rights. The owner of a property has the right to prevent others from using, disposing, and destroying the properties under his name. In simpler words, a property registered under the name of a person comes under their ownership. Ownership is permanent and usually gets transferred in the cases of death or sale.
Types of Ownership
There are several types of ownerships, similar to the types of properties discussed above:
- Individual ownership : When there is a single owner of a property, they are said to have individual ownership over their asset. It is to be noted that even if other people contributed to the funds that were used to buy the property, only the person against whom the property is registered would be considered its owner.
- Joint ownership : Joint ownership, also known as co-ownership, is when more than one people owns a property. In this case, the property in question is registered under the name of all the proprietors. Based on the specifications of the deal, joint ownership is broadly divided into three more categories.
- Joint tenancy is when each owner of the property enjoys equal rights and control over the property. This deal works in the spirit of unity.
- Tenancy in its entirety is a way of implying joint tenancy. The difference is that the owners of such properties are usually married couples. They both are equal owners of the property, and no action on the property can be taken without the consent of both owners. In the event of the demise of one partner, the surviving partner will be considered the sole owner of the property.
- Tenancy in common refers to two people holding property together but not having equal rights and control over it. This type of arrangement usually arises when the funds contributed to buying a property are not equally divided among the partners.
- Property ownership by nomination : Nomination is a procedure under which the owner of a property nominates a second person for ownership. In this case, the nominated person becomes a trustee of the property and is only a representative of the owner. This type of arrangement is generally used for the trustee to transfer the ownership of the asset to the heir of the property in question impartially in case the original owner dies.
The reason that landlords go for property ownership by nomination is that in case of sudden demise, the property will not remain unclaimed and therefore be saved from litigation charges. It is critical to note that since the nominated owner is not with the real owner of the property, they will not have any right over the transaction or sale of the property.
What is Possession?
Possession of a property is the final stage in its ownership. When someone purchases or acquires a property, several stages guide the transfer procedure, ending with possession. The literal meaning of the term is gaining physical control and access over a property.
Types of Possession
Possession, again, is divided into several kinds:
- Corporeal possession: Possession of corporeal property (land, homes)
- Incorporeal possession: Possession of incorporeal property (logos, designs, patents)
- Mediate possession: Possession over an entity via a mediator. The said entity remains in the buyer’s possession as long as the mediator owns the property. Example: A tenant living in a landlord’s apartment.
Other types of possession include adversary possession, constructive possession, and immediate possession.
Bottom Line
The property includes a wide array of entities that can be owned by a person or a group of people. There are numerous ways to classify and divide the property. It is, in fact, the classification of property into its different types that decides the laws and registration details made about them. Ownership and position are closely linked with the concept of property and must be studied extensively when transactions or distributions are involved.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
