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Legal Definitions - term in gross

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Definition of term in gross

A term in gross refers to a right or interest that is personal to the holder and exists for a specific period of time, but is not tied to a particular, identifiable piece of land or property. Unlike a traditional lease, which grants possession of a specific property for a set duration, a term in gross grants a right that can be exercised more broadly, without being permanently attached to a single, defined parcel of real estate. It's a personal right for a specific duration, rather than a property right that "runs with the land" or is fixed to one location.

Here are some examples to illustrate this concept:

  • Mobile Food Vendor Permit: Imagine a city issues a special permit to a food truck operator for one year. This permit allows the operator to set up their food truck and sell food at any of the city's designated public event spaces or parks, rather than assigning them a single, fixed spot for the entire year. The right to operate is personal to the food truck owner, valid for a specific term (one year), and not tied to a particular street corner or park plot. It's a flexible right to operate within a broader area.

  • Seasonal Vending Rights at an Amusement Park: An amusement park grants a vendor the exclusive right to sell a specific type of merchandise, like novelty hats, anywhere within the park's common areas during its operating season. This right is personal to that vendor, lasts for the duration of the season (the "term"), and allows them to move their cart or kiosk to different high-traffic spots within the park as needed, rather than being confined to one permanent location. The right is not fixed to a single physical space but applies broadly across the park's public zones.

  • Right to Harvest Resources (Non-Specific): A large landowner might grant a logging company a two-year "term in gross" right to harvest a certain volume of timber from any of the landowner's non-conservation forest plots, rather than specifying a single, pre-identified 50-acre parcel. This right is personal to the logging company, valid for a two-year term, and provides flexibility to select suitable areas across the landowner's broader holdings, without being tied to a specific, pre-defined tract of land.

Simple Definition

A "term in gross" refers to a right or interest in land that is granted for a specific, defined period. This right benefits an individual or entity personally, rather than being tied to the ownership or use of another specific piece of land.

You win some, you lose some, and some you just bill by the hour.

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