The person who is using an item is not necessarily the owner of the item. Occupancy is a state of de facto control over an item, while ownership is the right to use, profit from, or dispose of it. It’s important to clearly understand the difference between occupancy and possession, and to legally disclose or document it.
Is the person using the object the owner of the object? Occupancy is a state of de facto control over an object. In contrast, ownership is defined as having the right to use, benefit from, or dispose of something. Therefore, occupier and owner don’t always coincide.
Physical control of an object, including borrowing or storing it, is called direct occupancy. On the other hand, someone who borrows or stores an item and has the right to claim its return can also be said to have de facto control. This right of return is called indirect occupation. Both direct and indirect possession are forms of occupation. Possession also serves the function of disclosing the owner. A disclosure is a statement of who has what rights to an object. Most chattels, such as pianos, gold rings, and bags, are titled by occupancy.
To transfer ownership of an object, the owner must become the transferee, enter into a valid transfer agreement with the transferee, and publicize the transfer of ownership. A transfer of ownership of immovable property that is titled by occupancy is publicized by a conveyance of occupancy that passes possession. There are two cases where the transfer of ownership is publicized by indirect occupation by the transferee: ‘revision of occupation’ and ‘transfer of right of return’. For example, if A agrees to transfer ownership of a piano to B but agrees to borrow it for three days, B has a right of return to demand that A return the piano after three days. In this way, the transferor retains direct possession but is deemed to have delivered possession to the transferee, which is known as a modification of possession. On the other hand, suppose C enters into a contract with D to transfer ownership of a bag belonging to C to E. C entrusts D with the bag and has a claim for its return. If C notifies D that the bag has changed hands and that he should return the bag to E, the right of return for the bag in D’s custody is transferred from C to E. This is called an assignment of the right of return. This is called an assignment of the right of return.
Can a transferee acquire ownership by taking possession even if the transferor is not the owner? In the case of immovable property that is publicized as occupied, the transferee acquires title if the transferee, with due diligence, does not realize that the transferor is not the owner, but enters into a valid contract with the transferor and publicizes it as occupied. This is called ‘good faith acquisition’. However, good faith acquisition does not occur by revision of occupancy in the method of delivery by indirect occupancy. If the transferee acquires ownership through good faith acquisition, the original owner loses ownership even if the original owner does not want to.
This distinction between possession and ownership can lead to a variety of legal disputes. The issue becomes more complicated when the ownership of an object is not clear, especially in commercial transactions. For example, if one company lends a piece of machinery to another company, and the machinery has changed hands several times along the way, it’s important to know who the real owner is. In this case, each company can assert its rights through occupancy and ownership disclosures. Therefore, it is important to have a clear understanding of the concepts of occupancy and ownership, and to document and record them in order to prevent legal disputes.
On the other hand, objects that are required to be publicly disclosed by registration, a public record maintained by the state, are not subject to adverse possession at all. Immovable property such as automobiles and airplanes that are required by law to be registered are registered, and real property such as land and buildings are registered. Allowing good faith acquisition of such expensive property would deprive the original owner of ownership against their will. This is undesirable because it emphasizes transaction security and downplays the protection of the original owner’s rights.
In real life, the concepts of occupancy and possession are not only related to legal issues, but also to trust between individuals. For example, if you lend money to a friend and receive a watch as collateral in return, the occupant of the watch is the friend who lent you the money, but the owner is still the person who lent you the money. In this case, the borrower has the right to retrieve the watch, and this relationship of occupancy and possession is based on mutual trust.
In conclusion, occupancy and possession are important concepts when it comes to the rights to and use of objects. To avoid legal disputes, it’s important to have a clear understanding of the difference between the two, and to seek legal advice if necessary. It is also important to understand these concepts in everyday life and maintain relationships based on trust.
