Definition of "De Jure"

The term “de jure” comes from the Latin “by law” or “by right” and is commonly used to describe something that exists according to the law or by right. While the most popular use of the term is in the practice of law and almost always can be replaced by “as a matter of law”, it can also be applied to the real estate market. In both fields, the term “de jure” is contrasted with “de facto”.

The term de jure can be defined as a practice that is legally recognized even if the practice isn’t applied in reality, by law it stands but practice doesn’t do anything to establish it. Something that is legal by law, doesn’t necessarily have to be in fact real. For instance, you can be the legal owner of a car even if you have a driver that’s at the wheel even when you aren’t occupying the car. Similarly, a car rental is the legal owner of the car, but he allows his daughter to drive one car in a de facto manner without any paperwork that attests that she doesn’t have the legal right to that car.

De Jure Possession

When it comes to real estate possession, there are two types of possession that real estate agents and homeowners need to take into consideration. While a de facto possession does not entail any legal right of the property’s inhabitants, the de jure possession is that of the owner of the property.

De jure possession is applicable when the owner of property claims their ownership through legal manners, papers, or contracts that can not be disputed by another party that may claim their right of ownership. This de jure possession does not require physical occupation or possession in order to be enforced. It can not be disputed unless a real estate transaction takes place in which the de jure possession changes hands to the new owner.

Seeing as the de jure possession is linked to the legal right to possess a property, it is not limited to homeownership. For instance, a renter with a lease agreement is also in de jure possession of the property seeing as there is a legal agreement between the owner and the renter that allows the renter to occupy the property. 

To make the distinction clear, if the de jure renter invites a friend to stay over and live there, even if the renter leaves for several days and leaves their friend to use the property, the visitor is a de facto possessor of the property, while the renter remains the de jure possessor of the property.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Property description contained in a title deed. A deed description is intended to inform a reasonable person where property is located. It can be described by metes and bounds, by ...

Under current tax law, real estate is depreciated under either the straight-line method or modified accelerated cost recovery system (MACRS) method. See also MACRS. ...

Depreciation method based on the anticipated useful life of the property, allowing for normal wear and tear. ...

The definition of a full covenant and warranty deed in real estate is a type of deed that includes a number of specific assurances that certain conditions will be met that go above and ...

Trust beneficiary of an individual who is legally entitled to the property and financial benefits of a trust whose title is in another name. ...

Heating system generating heat through radiation as opposed to a convection heating system. For example, baseboard heating is a radiant heating system where the heat from circulating hot ...

Average number of business days an office space is being used. ...

The definition of low-income housing is any house that is either rented or owned by an individual or family that has a monthly household income that does not exceed a certain percentage of ...

Map within a governmental jurisdiction showing the boundary lines and ownership of all real property. A cadastral program produces the cadastral map. ...

Popular Real Estate Questions