Homestead principle

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This article is about the homestead principle as part of positive law. For the use of the homestead principle in ethics, see homestead principle (ethics).

The Homestead principle in law is the concept that one can gain ownership of a property that currently has no owner by using that property.

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[edit] Homesteading laws applied to land

In the 19th century, a number of governments formalized the homestead principle by passing laws that would grant property of land plots of certain standardized size to people who would settle on it and "improve" it in certain ways (typically, built their residence and started to farm at least a certain fraction of the land). Typically, such laws would apply to territories recently "cleansed" (or in the process of being cleansed) from its indigenous inhabitants, and which the state would want to have populated by white farmers. Examples:

[edit] Implications for other property types

In international law as well as U.S. law, there are various ways in which one can establish ownership of a piece of property.[citation needed] The most obvious and direct application of the homestead principle is a situation in which a group of explorers discover some previously unknown land and build a literal homestead there. However, in recent times, the homestead principle has also been applied to other things besides land: for example an item of property, or a non-tangible asset such as a business name.[citation needed] For instance, someone creates a company and names it something unique and new like, "Margaret's Cupcake and Squid Mashing Factory", and advertises this company name for a while, using it to do business (successfully or not). They have ownership of their company name by the Homestead principle.[citation needed] Then, if they get successful, and someone else creates a new company with the same name ("Margaret's Cupcake and Squid Mashing Factory"), Margaret can sue for trademark infringement and probably win.[citation needed]

In maritime law, salvage rights are extended to finders of shipwrecks or other abandoned property.[citation needed]

In 2001, Gregory W. Nemitz made a claim in U.S. Federal Court on 433 Eros (a fairly large asteroid - 13 x 13 x 33km). His claim was based on a variation of the homestead principle, which states that persons (or organizations) gain ownership of unowned things based on the amount of equity they invest in that thing. His claim was also based on the fact that the U.S. Federal Government cannot own any object in outer space (by obligation under the Outer Space Treaty, which carries the force of law). He, as a private citizen, claimed the property based on the equity of his legal acquisition work, private study of, and interest in the property.[citation needed] His claim and subsequent appeal were denied, but they illustrated a problem with the homestead principle: Can someone hold a legal claim over a piece of land that he never set foot on? If yes, then how much land can be claimed in this manner? It would be possible, for example, for persons to claim ownership over entire planets.

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