Acquiring Property Through Accession - Explained
Methods of Acquiring Ownership of Property
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How do individuals acquire an ownership interest in property?
Accession - Accession refers to additions to existing property to modify it in a way that results in new property. Accession is very similar to creation of something new. That is, if you add something to raw materials, you own the product that you make from the raw material.
- Example: I build a tree house with lumber that is not mine. I used property that was not mine, so I am liable for the value of the lumber. But, I own the product of my labor (the tree house). Of course, in my situation, the person may be able to file a legal claim against you if you do not pay for the lumber.
Next Article: Acquiring Property - Rule of First Possession Back to: PROPERTY LAW
Do you believe that something created from raw materials should be considered new property? In the business context, should ownership rights in newly created property vest in the owner of the raw materials?
Tom needs a place to live. He owns land, but he does not have the money to build a house. One day, he is riding by a construction site. Out front is a large stack of lumber that belongs to Angie, the general contractor. Tom comes back that evening and steals all of the lumber to build himself a house. Tom is a skilled carpenter and using the lumber it only takes him a week to frame in his house. If Angie learns that Tom stole his lumber, does she effectively own Toms house? Why or why not?
- Accession refers to the act of acquiring a property or goods of one party by another, and improving the worth of those goods, or turning that property into something better. When a person uses additional materials or contributes their own labor in order to improve or increase the value of someone elses property, it may be possible for that person to acquire title to the finished product be accession. Accession is done in good faith, if the property was acquired through a bad faith dealing, the property remains the owners and the trespasser cannot recover labor or material. Accession may also occur when someone changes another persons property entirely. In the example, Tom owns the house he built using the lumber he stole from Angie by virtue of accession and occasioned by his own labor in making the house. However, Angie can still exercise the right to sue Tom to recover the value of the lumber Tom took.
- Property Law (Intro)
- Tangible and Intangible property?
- Knowledge Capital
- Calculated Intangible Value
- Real and Personal Property?
- Littoral Land
- Readily Removable Fixtures
- What is ownership?
- Role of Government in ownership of property?
- Allodial System
- Role of property rights in economic activity?
- What are the limitations on property ownership rights?
- What is nuisance?
- What is Zoning?
- What is Eminent Domain?
- Just Compensation
- What is Property Taxation?
- Assessment Ratio
- Millage Rate
- Homeowners Association (HOA)
- Rule of First Possession?
- Lost or Mislaid Items?
- Adverse Possession?
- Establishing and transferring ownership in real property?
- Absolute Title
- Warranty Deed
- Register of Deeds
- What is a fee simple interest in real property?
- Absolute Interest
- Restrictive Covenant
- What is a life estate in real property?
- What is a leasehold estate in real property?
- What are common types of co-ownership relationships in real property?
- Owning Real Estate Personally vs as LLC
- What if Co-Owners of Real Estate Want Out
- Community Property and Separate Marital Property?
- What is an easement interest in real property?
- What is a license of real or personal property?
- Bundle of Rights
- Absorption Rate
- Fair Housing Act
- Federal Housing Administration (FHA)
- Housing and Urban Development (HUD)
- National Housing Act
- Design Build Contract
- Building Permits
- Certificate of Acceptance
- Construction Surety Bond
- Acquisition, Development, and Construction Loan (ADC)
- Flipping (Real Property)
- Buy, Strip, and Flip
- Homeowner Affordability and Stability Plan
- Building Residual Method
- Accessory Dwelling Unit
- Property Management
- Cost-Plus Contract
- Real Estate Investment Fund
- Listing Agreement
- Property Lawyers
- Multiple Listing Service
- Home Equity
- Register of Deeds
- Title Search
- Opinion of Title
- Certificate of Title
- Abstract of Title
- Chain of Title
- Clear Title
- Cloud on Title
- Defective Title
- Defect of Record
- Action to Quiet Title
- Affidavit of Title
- Warranty of Title
- Title Insurance
- American Land Title Association (ALTA)
- Earnest Money
- Private Mortgage Insurance
- Closing (Property)
- Settlement Statement
- Real Estate Settlement Procedure Act (RESPA)
- HUD-1 Form
- Closing Statement
- Closing Costs
- Buying Real Estate as an LLC
- What is a mortgage?
- What are the Rights of a Mortgage Holder?
- Deed of Trust or Security Deed?
- Trust Deed
- Certificate of Release
- Judicial Foreclosure
- Lis Pendens
- Short Sale
- Homeowners Protection Act
- Deed in Lieu of Foreclosure
- Tax Deed
- Tenancy at Will
- Closed End Lease Definition
One Percent Rule
- Net Lease
- Triple Net Lease (NNN)
- True Lease Definition
- Land Lease Option
- Hell or High Water Contract
- Habendum Clause
- Implied Warranty of Habitability
- Emblements Definition
- What is a bailment?
- Unilateral-benefit and mutual benefit bailments?