Legal Definitions - cum onere

Cum onere is a Latin phrase that translates to "with the burden." It describes a situation where an asset, property, or right is acquired by someone, but that acquisition comes with existing obligations, responsibilities, or charges attached to it. The new owner takes on these pre-existing burdens along with the asset itself.

Here are some examples to illustrate this concept:

• Real Estate Purchase: Imagine a developer purchases a plot of land that has an existing legal easement allowing a utility company to run power lines across a specific section of it. The developer acquires the land cum onere. This means they must respect the utility company's right to access and maintain those power lines, even if it restricts their building plans for that particular area. The easement is the "burden" that came with the land.

• Business Acquisition: A large manufacturing company decides to buy a smaller competitor. The competitor has several long-term supply contracts with its own customers, which extend for another two years. When the larger company acquires the smaller one, it does so cum onere. The acquiring company is now legally obligated to fulfill those existing supply contracts at the agreed-upon terms, even if they would prefer to renegotiate or discontinue those relationships.

• Inheritance of Property: A person inherits a house from a deceased relative. However, the house has an outstanding mortgage and a property tax lien from unpaid taxes. The inheritor receives the house cum onere. They are now responsible for making the remaining mortgage payments and settling the property tax lien, as these financial obligations are attached to the property itself and transfer with its ownership.