In relation to the law of property, explain the difference between each of the following;
(i) Ownership and possession.
(ii) Fee simple and leasehold.
i) Difference between Ownership and possession
| Ownership | Possession |
| • Is proprietary in nature as it confers basics rights over property for example right to exclusive use, misuse, possession and disposition. | • This is the act of holding or being in control of property and the intention to exert control. |
| • The owner if legally entitled to part with possession. | • It generally confers no proprietary rights. |
| • It is a question of law. | • It is a question of fact. |
| • May be acquired in different ways for example, inheritance, adverse possession, transfer etc | • It is often said that possession is “nineteenth” of the law |
| • May be converted to ownership in various ways. |
ii) Difference between Fee simple and leasehold
| Fee Simple | Leasehold |
| This is the largest estate a person can acquire from the state. | This is a secondary estate derived from a primary estate. |
| It confers unlimited right to use, abuse and to dispose. | A lease is a transaction which creates the relationship between the landlord and tenant between the grantor and the grantee |
| It is disposable deed or will. | Leasehold is the quantum of rights demised the lease. |
| It is unlimited in duration | It confers the right to possession and use. |
| It is a freehold estate | Subject to numerous conditions |
| Can be inherited anyone but escheats to the state in the event of failure of an issue. | It is for a defined premises for a specified duration but confers exclusive possession. |
| It may be created grant as well as entranchisement. | It is a contractual relationship. |
| A leasehold may be fixed term, periodic, service sufferance or at will. | |
| It is terminable in various ways, for example notice, surrender forfeiture lapse of time etc. |