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Understanding the Statute of Mortmain: Legal Definitions and Impacts
Definition & Meaning
The statute of mortmain refers to laws that restrict the ability of corporations to own land indefinitely. This legal principle originated in England, where specific acts, such as those from the Westminster provisions and the Magna Carta, mandated that corporations must obtain prior authorization from the Crown before acquiring land. The primary aim of these laws was to prevent religious corporations from holding land in perpetuity, thus ensuring that property remained available for public use and taxation. In the United States, while common law does not impose similar restrictions, some states have enacted laws that limit the amount of property a corporation can hold for charitable or religious purposes.
Table of content
Legal Use & context
The statute of mortmain is primarily relevant in property law and corporate law. It is used to ensure that land ownership does not become concentrated in corporations, particularly those with charitable or religious missions. Legal professionals may encounter this term when advising clients on property transactions or corporate governance. Users can manage certain aspects of property ownership and compliance with state laws using legal templates from US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A religious organization wishes to acquire a large parcel of land for a new community center. Before proceeding, they must seek and obtain authorization from the state government to ensure compliance with the statute of mortmain.
Example 2: A corporation that operates a charitable foundation wants to purchase a historic property. They must verify that their acquisition aligns with state laws that limit the amount of property they can hold for charitable purposes. (hypothetical example)
State-by-state differences
State
Key Differences
California
Limits on property holdings for charitable organizations are more stringent compared to other states.
New York
Requires specific filings for religious corporations acquiring land.
Texas
Less restrictive compared to other states, with fewer limitations on land ownership for corporations.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Mortmain
Refers to the concept of land held in perpetuity by a corporation.
Specifically focuses on land ownership restrictions.
Charitable Trust
A trust established for charitable purposes.
Does not inherently restrict land ownership but may have similar limitations on property holdings.
Common misunderstandings
What to do if this term applies to you
If you are part of a corporation looking to acquire land, ensure you understand your state's requirements regarding the statute of mortmain. You may want to consult with a legal professional for detailed guidance. Additionally, consider using legal form templates from US Legal Forms to assist with the necessary documentation.
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