Difference Between Ownership and Possession?

Hi Noor,

Languages can be very confusing sometimes. But personally for me, English becomes the most confusing language at times. And I’m sure it confuses you too when it comes to similar-sounding terms like ‘ownership’ and ‘possession’. Many of us confuse them as synonyms for each other but there is a huge difference between ownership and possession from the perspective of law. So, do not worry, I will help you understand the difference between the two with all the knowledge I have about them.

Ownership can be defined as the relationship between a property and a person. It includes the rights of possession, disposition, and destruction.

While possession can be defined as the power a person has over a property that excludes other people from using or controlling the property.

I will help you distinguish between possession and ownership with the following table:

I hope now you clearly understand the difference between ownership and possession.

Let’s explore the ownership vs possession difference:

• Definition: Ownership refers to the legal right to possess, control, and dispose of a property.

• Characteristics:

  • The owner has the absolute right to possession. It doesn’t matter if the owner is in actual physical possession of the object; as long as they have the right to possess it, they are considered the owner.

  • The owner has the liberty to use and enjoy the benefits of the property. No one can interfere with their right to use what they own.

  • Ownership includes the right to exhaust the object while using it (e.g., consuming it) and the right to destroy or alienate the object (e.g., selling it).

  • Ownership is for an indeterminate duration; it doesn’t have a fixed time limit.

  • Ownership is residuary in character, meaning that even if the owner leases or lends the object, they still remain the owner.

• Definition: Possession is the physical control or occupation of an object.

• Characteristics:

  • Possession is a the facto relation between a person and an object. It doesn’t necessarily imply ownership.

  • A person can possess something they don’t own (e.g., leasing a property).

  • Conversely, a person can own an object without physically possessing it (e.g., owning shares in a company but not physically holding them).

  • Possession involves apparent control and the power to exclude others from using the object.

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Until I invested in a property and got a first-hand experience with legal real estate terms, I used to think that ownership and possession were one and the same thing. But it was a good friend of mine who helped me distinguish between ownership and possession.

I must tell you that in legal terms, ownership and possession are quite distinguished. If you ask me the difference between ownership and possession example, I would tell you that ownership means having an absolute right over an asset. For example, patent, copyright, and trademark ownership. While possession means legal or physical control or right over an asset. For example, have possession of an object like a mobile phone or a car.

This is how you can distinguish between ownership and possession.

My cousin had started her own business a few years back and leased a commercial space. As she navigated the world of business, Sarah learned about the difference between ownership and possession. She realized that while she possessed the physical control and use of the leased space, the ownership rights belonged to the landlord. Through her experience she told me how important it was for young entrepreneurs to understand the ownership and possession difference. I will tell you everything she told me about it.

Distinction between ownership and possession

Similarities between ownership and possession

• Both ownership and possession involve having control or rights over a property. Ownership refers to having legal title or the right to claim ownership of the property, while possession refers to physically occupying or having control over the property.

• In both cases, the person or entity has some level of control or authority over the property. They can make decisions regarding its use, maintenance, and transfer.

• Furthermore, ownership and possession often go hand in hand, as the owner of a property typically possesses it.

• Additionally, both ownership and possession come with certain rights and responsibilities. The owner or possessor has the right to enjoy and use the property, as well as the responsibility to take care of it and comply with legal obligations.

Now you know ownership and possession difference and similarities as well.

As Sobha rightly said, people often get confused with the terms “ownership” and “possession”. But I want you to know that they’re different concepts and have different meanings. The concept of property has existed for centuries. It has undergone a significant transformation over the years, and possession and ownership combine to complete the “property” definition. That’s why you should understand the meaning and difference between possession and ownership if you want to understand the term “property”.

The main difference between possession and ownership is that ownership is a right by which something belongs to somebody whereas possession is having physical control or custody of an object.

When somebody has legal rights over a property, we can say that they own it. Ownership is the right that grants an object to a person in a manner that the thing belongs to that individual. Ownership can be considered as a fact that one can prove through the property title.

Possession can be defined as physical control or custody of any object. Possession isn’t the same as ownership. A criminal might be in ownership of the stolen money or property that belongs to someone else.

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I hope you unde difference between possession and ownership.