Dear Sir,

I have a question relating to a property law: Is it possible to 'rent' a property and at the same time 'own' a house (or whatever buildings on the property) in the US (or in any major developed countries)?

I got into a debate with my friend who claims that as long as you own a property, whatever on it is to be within your ownership such as a house. I on the other hand claimed that there must be a way wherein one can rent a property and still own a house by a contract.

My claim is based upon the fact that - I have heard that people in France often rent property while owing their dwellings.

How does it work in the US? Any useful comment with legitimate source(s) is appriciated.
kind regards,

I'm not sure I understand your question. But I can interpret it either of two ways, and I shall give you both answers. (This is United States law.)

1. Is it possible to own a house, rent it out to other occupants, not live in it yourself, and still be considered the legal owner?

Answer: Yes. We are currently doing just that.

2. Is it possible to live in a house that belongs to someone else and pay them rent, yet at the same time own another house that you rent out to a third party, and still be considered the legal owner of the second house?

Answer: Yes. We did that for one year.

I hope that one or both of these is the answer you're looking for.

...my friend who claims that as long as you own a property, whatever on it is to be within your ownership such as a house.Not completely true. It's possible to own the land and rent/lease it to someone else to build a house, but that won't automatically make the house your's. Large commercial enterprizes often do that, but the legalities are very complicated and generally too much for the individual.

The contract to rent/lease would have to stipulate what the limitations are on the land for the landowner and the disposition of the improvement (house) in the event the rent/lease contract terminates normally or is prematurely terminated by one or the other parties. If the rent/lease contract terminates under conditions other than friendly, expect all sorts of legal problems. You can GOOGLE up all sorts of references on real estate law.

IMHO, it's really a dumb thing to do if you're talking about a private residence if the rented land extends beyond the foundation of the residence.

Fragle Rocker:

1. Is it possible to own a house, rent it out to other occupants, not live in it yourself, and still be considered the legal owner?

Answer: Yes. We are currently doing just that.

I think you are referring to a form of apartment. This is not the situation in question.


2. Is it possible to live in a house that belongs to someone else and pay them rent, yet at the same time own another house that you rent out to a third party, and still be considered the legal owner of the second house?

Answer: Yes. We did that for one year.

This one is not the situation either.

Marv:

Not completely true. It's possible to own the land and rent/lease it to someone else to build a house, but that won't automatically make the house your's. Large commercial enterprizes often do that, but the legalities are very complicated and generally too much for the individual.

Yes, this is precesely the answer I was seeking.


You can GOOGLE up all sorts of references on real estate law.

Though my research via google has not been too successful: Hence I started the thread.

Anyway, Thanks you Fragle Rocker and Marv.

Fragle Rocker:

I'm not sure I understand your question.

Indeed, after reading my question, it didn't make sense. Anyway, my question is:

Is it possible to leagally own a house while renting the land on which a house is built?

So far, Marv has suggested that it can be done with leagal complications. Nevertheless, it is possible.

Does anyone corresponding laws?
thanks,

Is it possible to leagally own a house while renting the land on which a house is built?

In Canada it is.

We have a place outside of Calgary called 'Bragg Creek'. The land is owned by natives, but rented out to the developers. In about 40 years time, the natives will once again be in control of the land (and whatever's on it.)

Some thoughts:
Large downtown office buildings often sit on un-owned land. Sidewalks and service alleys are usually public property, but water, electric and sewer service lines up to the office building would be owned/controlled by the municipality or utility company. Operation of the office building would be a maze of permits, contracts, assignment of legal liabilities, access, etc. Xerxes describes a situation involving disposition of a structure after a lease terminates. Bragg Creek better hope to make their profit before the structure is turned over to the natives. Owning a private residence where the land extends beyond the foundation of the residence can be tricky. What happens if the land owner decides to dig a ditch on his land - right through the only access to your house? Bragg Creek probably has a well written contract and a bevy of high paid lawyers looking after their interests.

Owning the home while renting the land is standard practice in Mobilehome/ Trailer Parks.

Its standard practice in UK, its called leasehold. There are virtually no legal complications here, but it may be different elsewhere.

There is also the only recently introduced commonhold, which other countries have had for a century or so.

Lava