Legal Definitions - possessory interest

A possessory interest describes a legal right that allows an individual or entity to use, occupy, and control a specific piece of property, even though they do not hold legal ownership of it. This right grants the holder the ability to enjoy the property and generally exclude others from it, for a defined period or under particular conditions. While the property's ultimate ownership remains with another party, the person with a possessory interest has a current, enforceable claim to its use and enjoyment.

Here are some examples illustrating a possessory interest:

• Apartment Rental: Imagine a tenant who signs a one-year lease agreement for an apartment. The tenant does not own the apartment building or the individual unit. However, their lease grants them the exclusive right to live in, use, and control that specific apartment for the duration of the lease term. They can furnish it, host guests, and prevent others (including the landlord, with some exceptions) from entering without permission. This right to occupy and control the apartment, despite not owning it, is their possessory interest.

• Festival Vendor Space: Consider a food truck owner who pays a fee to set up their truck and sell food at a weekend music festival held on public park land. The food truck owner does not own the park. However, their agreement with the festival organizers or the city grants them a temporary, exclusive right to occupy a designated space within the park for the duration of the event. This allows them to operate their business, set up their equipment, and prevent other vendors or attendees from encroaching on their specific spot, demonstrating a possessory interest in that particular piece of land for a limited time.

• Commercial Parking Permit: A commuter pays a monthly fee for a reserved parking space in a downtown commercial garage. The commuter does not own the parking garage or the individual space. Nevertheless, their monthly permit grants them a specific, ongoing right to use and occupy that particular parking spot, and to prevent others from parking there. This exclusive right to control and utilize the designated space, despite not owning it, constitutes a possessory interest.