Legal Definitions - proprietas

The term proprietas is a historical Latin term that refers to the concept of ownership.

Within this general concept, two specific forms of ownership are distinguished:

• Proprietas Nuda (Naked Ownership)

  This describes a situation where an individual holds the legal title to property, but they do not have the right to use, enjoy, or profit from it. These practical benefits, often referred to as the "usufruct," are held by another party. Essentially, the owner possesses the "bare" or "naked" title, while someone else has the right to the property's practical use and benefits.

  • Example 1 (Real Estate): A grandparent legally transfers the title of their vacation cottage to their grandchild, but they reserve a "life estate" for themselves. This means the grandparent retains the exclusive right to live in and use the cottage for the remainder of their life.

    Illustration: In this scenario, the grandchild holds the proprietas nuda. They are the legal owner of the cottage (they have the title), but they cannot occupy it, rent it out, or sell it without the grandparent's consent (or until the grandparent passes away). The grandparent holds the usufruct.

  • Example 2 (Financial Assets): A wealthy individual sets up a trust, naming their nephew as the legal owner of a bond portfolio. However, the trust specifies that all interest payments generated by these bonds must be paid to their elderly aunt for the next fifteen years.

    Illustration: The nephew possesses proprietas nuda over the bond portfolio. He holds the legal title to the bonds, but he does not receive the immediate financial benefits (the interest payments). The aunt holds the usufruct for the specified period.

• Proprietas Plena (Full Ownership)

  This signifies complete ownership, where the owner holds both the legal title to the property and the full, unrestricted right to use, enjoy, and profit from it. There are no other parties with a superior right to the property's use or benefits.

  • Example 1 (Personal Property): After purchasing a new bicycle from a sporting goods store, a person takes it home, and it is entirely theirs to ride, modify, or sell as they wish.

    Illustration: The bicycle owner has proprietas plena. They hold the title to the bicycle and also have the unrestricted right to use it, lend it, or derive any benefit from it.

  • Example 2 (Business Assets): A small business owner purchases a new commercial oven for their bakery using their own funds. They register it as a company asset and have complete control over its use, maintenance, and eventual disposal.

    Illustration: The business owner holds proprietas plena over the oven. They own the asset and have the exclusive right to use it for their business operations, generate revenue from it, and make all decisions regarding it without any limitations from another party's usufruct.