abandonment

Dictionary of Accounting Terms for: abandonment
abandonment

voluntary surrender of property, owned or leased, without naming a successor as owner or tenant. The property will generally revert to a person holding a prior interest or, in cases where no owner is apparent, to the state.

Dictionary of Banking Terms for: abandonment
abandonment

voluntary surrender of rights, title, or claim to property, and forfeiture of any legal rights of ownership. Asavings account or brokerage account will be considered abandoned property if it is unused for a certain number of years and the owner cannot be found; the account legally becomes property of the state under the laws of escheat.

Dictionary of Business Terms for: abandonment
abandonment

voluntary, intentional surrender of property, or of a right to property, without naming a successor as owner or tenant. The property will generally revert to one holding a prior interest or, in cases where no owner is apparent, to the state. Abandonment does not relieve a person from obligations associated with lease or ownership unless the abandonment is accepted by the entity to which the obligation is owed.

Dictionary of Finance and Investment Terms for: abandonment
abandonment

voluntarily giving up all rights, title, or claims to property that rightfully belongs to the owner. An example of abandoned property would be stocks, bonds, or mutual funds held in a brokerage account for which the firm is unable to locate the listed owner over a specified period of time, usually a few years. If ruled to be abandoned, the property may revert to the state under the laws of escheat. In addition to financial assets, other kinds of property that are subject to abandonment include patents, inventions, leases, trademarks, contracts, and copyrights.

Dictionary of Real Estate Terms for: abandonment
abandonment

the voluntary surrender of property, owned or leased, without naming a successor as owner or tenant. The property will generally revert to one holding a prior interest or, in cases where no owner is apparent, to the state. Abandonment does not relieve obligations associated with lease or ownership unless the abandonmentis accepted by the entity to which the obligation is owed.

Example: Abel owns a dilapidated apartment house with 2 years’ delinquent property taxes. Rather than pay the back taxes, Abel abandons the building by disclaiming ownership.

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