Information

 

Restricted ownership

The fundamental concept of ownership is separate from the various particular rights that an owner of property normally enjoys. This means that specific rights such as possession, or use and enjoyment, can be transferred by an owner of property to another person, normally for a stated time, without giving up their rights of ownership. A common example of this is when an owner of property gives another person the right to possess and use their property. During the agreed period, the rights of the owner are restricted to the extent that they have been granted to the other person.

Example: A owns a number of valuable paintings which are normally kept in his house. He agrees to lend them to the national art gallery for a year, so that they can be displayed as part of an exhibition. At the end of the year, the paintings will be returned to A.

In Thomas v Thomas (1842) 114 ER 330 the executors of Mr Thomas' estate were left with restricted ownership of his house after they agreed to give the possession and use of Mr Thomas' house to his widow for her lifetime.