Legal Definitions - terre-tenant

A terre-tenant is an individual who has actual possession or occupancy of land. The term can also refer to someone who acquires an interest in land that is already subject to a judgment lien, such as a subsequent purchaser of the property.

A terre-tenant refers to an individual or entity that holds actual physical possession of land. More specifically, in legal contexts involving judgments, it can also describe someone who acquires an interest in land that is already subject to a judgment lien, meaning a debt officially recorded against the property.

Here are some examples to illustrate this term:

• Example 1 (Actual Possession): Imagine a local bakery, "The Daily Loaf," that leases a storefront in a bustling downtown area. The bakery staff regularly occupy the space, operate their ovens, and serve customers within those premises. In this scenario, "The Daily Loaf" is the terre-tenant because it has actual, physical possession and use of the land (the storefront property) through its lease agreement.

• Example 2 (Interest in Encumbered Land - Subsequent Purchaser): Sarah owned a piece of undeveloped land. A court issued a judgment against her for an unpaid business loan, and this judgment was officially recorded, creating a lien on her land. A few months later, before the lien was satisfied, Sarah sold the land to a developer, Mr. Henderson, who planned to build houses. Mr. Henderson became a terre-tenant because he acquired an ownership interest in the land *after* the judgment lien was already attached to it. He now owns the property, but it remains subject to that pre-existing lien.

• Example 3 (Interest in Encumbered Land - Mortgagee): A property owner, Ms. Chen, had a judgment lien placed on her rental apartment building due to a personal debt. After this lien was officially recorded, Ms. Chen decided to refinance her existing mortgage with a new bank to get a lower interest rate. The new bank, by providing the refinancing and securing it with a mortgage on the property, became a terre-tenant. This is because the bank acquired a new security interest in the land *after* the judgment lien was already in place, meaning its interest is subject to the prior lien.