Difference between possession and Ownership

 Ownership and possession of the property are commonly deemed the same terms, but there is a difference between possession and ownership. These terms are different and have different meanings.

The term ownership gets derived from the Latin word ‘own’, which means “to have or to hold a thing.

Ownership gets defined as a legal right of possession and use of a property. This legal right is enshrined with an individual, group, state, etc., and is available against a movable or immovable property.

Possession is physical custody of a property with the intention of ownership. Possession is a provisional title against the owner. In reality, it is not owned; it’s just a mere occupying of that property.

Definitions

According to Austin, Ownership gets defined as “a right over a determinate thing, indefinite in the point of the user, unrestricted in the point of the disposition, and unlimited in point of duration.”

In simple terms, In ownership, 

  • The person has a right over a specified or specific property, 

  • The number of users can be indefinite for a concerned property, 

  • That property can be disposed of by the owner without any restriction and,

  • It can have the owner for an unlimited duration of time without any question.

Salmond defines ownership as “a relation between a person and an object which forms the subject matter of his ownership.”

However, Holland defines ownership as “a plenary control over an object.”

According to Henry Maine, the “possession is physical detention of property in combination with the intention to hold the detained property as one’s own.”

According to Salmond, “possession is defined as a continuing exercise of a claim, to the continuing use of an object”. 


In simple terms, It is 

  • The claim of an exclusive user

  • Actual use in a continuous manner

just physical custody of the property foto use and exclude others from doing so.

Difference between possession and ownership

  1. Ownership gets considered as an absolute legal right over the property.

Possession is a mere physical control over the property. The possessor has the better title of the property against the whole world, except the true owner.

  1. In ownership, there are unlimited and uncontrolled rights over the property, whereas; possession is a limited concept of right.

  2. Transfer of ownership requires legal procedures, pre-requisites of registration.

Transfer of possession is a more feasible process than ownership and registration, and other legal formalities like ownership are not requisite.

  1. Ownership is a union of ownership and possession, whereas possession is a concept giving no right of ownership.

  2. Ownership is a de jure concept, while possession is a de-facto concept for claiming the property.

  3. Ownership right is a broader concept. It is a legal right. 

  4. Possession depicts a legal situation. Possession is a possessory right only. 

  5. Ownership is an absolute right over a property. The owner even has the right to dispose of the property.

Possession is a right of use only. A possessor of a property doesn’t have any right to dispose of a property in any way.

  1. There are no restrictions on the transfer of property in an ownership while,

Property in possession has restrictions for transfer or in its disposition.

  1. Ownership cannot get carried out with practical use in the absence of possession. 

Possession may be a ground for using the property similarly to an owner and a possessor.

  1. It consists of the bundle of rights, and all the rights are right in rem, whereas ownership is prima facie a proof or evidence of ownership.

  2. Ownership is a guarantee by the law, while the owner of the property guarantees possession.


Visit getlegalindia.com to read more differences between possession and ownership in detail.

Conclusion

The concept of ownership and possession differs, as we discussed in all the points mentioned above. In the current transition scenario in the real estate sector, it is necessary to be aware of these two terms and the difference between possession and ownership.

The people at large should be aware of the difference between possession and ownership.

Ownership is a matter of multiple rights and entitles a party to use it for an indefinite period as per his wish and can transfer his rights. At the same time, a possessor doesn’t have any ownership over the property and possesses it as per the owner’s wish. The possessor is not entitled to transfer his possessory rights on his own without the owner’s permission.

Moreover, These two terms are jurisprudential and get recognised under the Transfer Of Property Act 1882.

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