A more thorough explanation:

Vitium reale is a Latin term that means "true error." In historical and Scottish law, it refers to a defect in a title that makes movable property nontransferable. Specifically, it is an inherent flaw in the title of anyone who possesses stolen property, even if they acquired it honestly. This flaw prevents the possessor from conferring a good title on anyone else, even if they took the property in good faith and without knowledge of the theft. The true owner can reclaim the property or receive compensation for it.

If someone steals a car and sells it to an unsuspecting buyer, the buyer may have acquired the car in good faith, but the inherent vitium reale in the title means that they do not have a good title to the car. The true owner can reclaim the car or receive compensation for it.

However, there are exceptions to the rule of vitium reale. Money, banknotes, and negotiable instruments are not affected by this flaw, so if someone steals money and uses it to buy something, the buyer who receives the stolen money as payment can keep the item they bought.

These examples illustrate how vitium reale works in practice. It ensures that stolen property can be returned to its rightful owner, even if it has passed through several hands. However, it also recognizes that certain types of property, such as money, have a different status and can be transferred even if they were obtained through theft.