Proprietary Interest Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Proprietary Interest, written in plain English, along with examples of how it is used.

What is Proprietary Interest?

n.Interest in any kind of property which can be complete ownership or partial ownership.

History and Meaning of Proprietary Interest

Proprietary interest refers to an individual's interest in a property that can be complete or partial. This interest can be created by owning the property, possessing it, or having an entitlement to it. Interestingly, proprietary interest can exist without actual possession of the property. It can be transferred from one person to another by the method of sale, gift, inheritance, or any other legal way. The concept of proprietary interest has its roots in the common law system of England.

Examples of Proprietary Interest

  1. Thomas is a tenant of an apartment, and he has a proprietary interest in the property for the duration of his lease.
  2. John takes a mortgage loan to buy a house. The bank holds the proprietary interest in the house until John fully repays the loan.
  3. Jack's grandfather recently passed away, and he left his estate to Jack in his will. Jack now has a proprietary interest in the estate.

Legal Terms Similar to Proprietary Interest

  1. Ownership: A person who possesses the title to a piece of property has complete ownership of it. This includes the right to use, sell and mortgage the property as they see fit.
  2. Possession: An individual who has physical control over a piece of property has possession of it. In some cases, possession can lead to ownership or proprietary interest.
  3. Equity: Equity refers to the interest or value that an individual holds in a property. It can be created by ownership, possession, or entitlement to a property, similar to proprietary interest.