ESTATE OWNERSHIP—MEANING, CONDITIONS, AND REASONS

Post a Comment

Estate ownership can be defined as the exclusive management, control and enjoyment of certain benefits from land or landed property.

These benefits include the right to use the land, receive income from it, exclude anyone from it, transfer the property through lease, pledge or sales.

Estate ownership can also be defined as the right to exercise control over a property. 

For estate ownership to exist, there must be at least five things, namely; owner, objects to be owned, persons with competitive rights,intention to own and law.

1. Owner: Person or group of people who will exercise control over the property. This explains why infants cannot be property y owners because they can't exercise control over the property

2. Object to be owned: These are the property or land owned by the owner (s). Such property must be exclusive to the owners and must possess some form of economic value

3. Persons with competitive rights: There must be individuals against whom ownership rights can be enforced. These ensure that the owner is able to exclude certain individuals from his property.

4. Intention to own: The possessor of an object to be owned (property) must intend to exercise physical custody control and keep custody over the property.

5. Law: The essence of ownership resides in rights, which will be upheld by law or custom. 

This necessitates the existence of a legal system, courts where rights may be challenged, and an enforcement agency to enforce legal decisions.

Reasons Or Motives For Estate Ownership

There are several reasons for owning land, but they can be divided into two categories: economic and non-economic motives.

Economic motives

These are motives that revolve around generating or increasing financial gains. 

A. Income returns: This is perhaps one of the most common reasons for owning land. People usually own land because of its ability to generate income.

For example, estate owners can receive rent if they lease their property.

B. Spreading investment: Going by the popular dictum that " one should not put all his eggs in one basket", Landed property provides an alternate form of investment.

It has been even been argued that land is the best form of investment because it appreciates in value and is less risky than other investments.

C. Capital growth:  This is also known as capital appreciation,  and refers to the increase in the value of an investment over time.

Because the value of land increased over time, it was a good source of capital growth.

D. Tax shelter: In certain countries, owning property entitles the owner to tax reductions or exemptions, resulting in a lower tax burden and higher returns.

Non-economic motives

These are non-economic reasons for owning land or landed property. They include

A. Shelter: People generally owned the property for shelter, in addition to its income-generating potential.

This explains why there is such a high likelihood of becoming a homeowner. In general, an individual owner wants the property to provide housing for his family, whereas an institutional owner wants it to provide housing for their staff.

B. Social motives:  In line with point one, the government also purchased land to meet citizens' housing requirements.

C. Legacy: The ultimate goal of many people is to leave a legacy for future generations. This can be easily achieved through property ownership

D. Prestige: As a result of the scarcity of public housing, property owners are held in high esteem in our society today.

Property ownership has evolved into a status symbol that confers prestige on the owner such that anyone claiming to be wealthy must be able to boast about property ownership.

Related posts

Conclusion

We have just looked at estate ownership. For a recap, estate ownership is the exclusive control over a property. 

Five things are necessary for estate ownership, namely: Owner. object to be owned, intention to own, persons with competitive rights and law.

There are two main motives for owning land: Economic and non-economic motives.

Have you enjoyed what you've read so far? Subscribe to eathyreading to be the first to know when we publish new content.

Help us grow our readership by sharing this post

Related Posts

Post a Comment

Subscribe Our Newsletter