Restatement (Third) of Property · Section § 2-2
An overview of the key principles governing the creation and transfer of property interests as outlined in the Restatement (Third) of Property.
Source: Restatement Restatement (Third) of Property § § 2-2
A property interest is created when the intent of the transferor is matched with proper delivery and acceptance by the transferee.
This section specifies that a property interest is legally created through a clear intention by the person transferring the property, along with actual delivery of that interest and acceptance by the person receiving it. In simpler terms, if someone wants to give you property, they must clearly express that intention and complete the action of handing it over, with you agreeing to receive it.
The intent to transfer must be manifest and clear.
Delivery of the property must be actual or constructive.
Acceptance is generally presumed unless expressly refused.
Illustration 1
If a homeowner gives their neighbor a key to a garage, that act demonstrates the intent to transfer access to the garage.
Illustration 2
A parent intending to give their child a house must formally conduct a deed transfer for legal recognition.
The case illustrated how intent and delivery of property interest must be clearly established for a valid transfer.
Understanding the principles in § 2-2 is crucial for real estate transactions and estate planning, as it clarifies how property interests can be effectively established and ensured against potential disputes. Practitioners must ensure that the elements of intention, delivery, and acceptance are clearly satisfied to avoid litigation.