THE JERUSALEM INSTITUTE OF JEWISH LAW 
Rabbi Emanuel Quint, Dean

Lesson # 164 (part four) • Acquiring Personal Property• We now discuss another method of acquiring personal property, that is by the payment of money.

According to Torah law, both real estate and personal property can be acquired if the buyer gives to the seller money for the thing purchased. However, the Rabbis in ancient times changed the law insofar as it deals with the purchase of personal property. The general rule is now that payment of money does not transfer ownership of the item of personal property to the buyer. The item still belongs to the seller. When a person buys a loaf of bread in a grocery store, halachikly, it is the act of lifting the loaf that is the act of acquisition. Except that if the seller insists, the act of acquisition must be coupled with payment or at least with credit extended to the buyer. Then both the act and the payment will transfer ownership. As is stated in these lessons, there are many methods of performing an act of acquisition to acquire personal property. It is usually stated in the codes that the payment of money by itself does not transfer ownership to personal property. Much of what is stated here, is superseded by the laws of the land, and the laws of the merchants and local laws.

The reason for the decree of the Rabbis is significant. Because, in those situations where the reason is not present, ownership may still be transferred by the payment of money. Also the reason has no application to real estate and therefore ownership of real estate can still be transferred by the payment of money. The reason for the decree is as follows: Assume that ownership is transferred on the payment of money, and the buyer permitted his purchased goods to remain in the hands of the seller after the buyer paid the money to the seller. If thereafter there was a fire or a flood or robbers came, the seller will not move hastily or move at all to protect the goods that the seller sold to the buyer. Theoretically, a similar situation could arise after the decree of the Rabbis. Assume that a buyer paid for an item but has not yet made an act of acquisition. In case of a fire or robbers or flood, the money of the buyer is in the possession of the seller. Since ownership of the goods to be sold has not yet been transferred the seller will not take care to see that the money of the buyer is protected, since the money is in the possession of the seller but belongs to the buyer. The answer given in the codes is that it is much easier to rescue the money than goods. Also nowadays the money is very often paid by check or promissory note and is most often deposited in the seller's bank and is thus protected.

There are two categories of exceptions where the law remains as it was under Torah law, namely, that the giving of money by the buyer to the seller is an act of acquisition. (1) Where the rationale of the Rabbis does not apply; or (2) in unusual cases to which the Rabbis did not intend their enactment to apply.

Exceptions where the rationale of the Rabbis does not apply:
1. The most obvious exception is when the seller and buyer agree that the sale shall take place as soon as the money is paid by the buyer to the seller.
2. The premises of the buyer are leased to the seller and the item is found on these premises. The buyer pays the seller for the item of personal property. Ownership is transferred to the buyer.
3. The seller is the landlord and the buyer is a tenant of part of the seller's premises. The sold item is on the premises in the part not rented to the buyer. As the buyer gives the seller the money for the item, ownership of the item is transferred to the buyer.
4. The item sold is not under the control of the seller or the buyer. For example the seller sells chopped wood he found in the forest. The buyer pays the seller for the wood. ownership is transferred to the buyer as soon as he pays the seller for the wood.
5. Ownership is transferred to the buyer as soon as he pays for it, if the item sold is in a place that cannot be burned or flooded. I would add to that if the item is covered by insurance naming the buyer as the insured party. If the item is burned, the insurance company will pay the buyer for the loss,

Exceptions in unusual cases
1. The buyer has money in his hands and it is not known to either the seller or the buyer how much money the buyer is holding. The buyer offers to buy the item that the seller is selling for the total money that the buyer is holding in his hands. The seller agrees and takes the money. The giving of the money to the seller is the act of acquisition.
2. Both the seller and the buyer know how much money the buyer is holding but they do not know the quantity of the item sold. For example, the seller sells the fruit in the field that was picked by his workmen. As soon as the buyer gives the seller the money, the fruit belongs to the buyer.
3. Reuven sells an item to Shimon and Shimon acquires the item by lifting it up. Shimon does not pay for the item but owes the money to Reuven. Shimon now has an item to sell, either the same item he purchased from Reuven or an other item. Reuven offers to buy the item from Shimon for the money owed to him by Shimon. The item sold by Shimon is acquired by Reuven when Shimon agrees to the sale, and it is the money held by Shimon that acts as the acquisition.
4. The item that Reuven is selling to Shimon is held by Levi. Reuven instructs Levi to give the item to Shimon, who has paid Reuven for the item. The item belongs to Shimon even though he has not lifted the item of performed any other act of acquisition on the item.
5. The exception made on behalf of minor orphans by their guardian. If they to sell goods, they must be acquired only by the buyer giving the purchase money to the guardians of the orphans.
6. If the buyer or the seller is a charity, then as soon as he buyer pays for the item it belongs to the charity, if it is the buyer, or to the other party if the charity is the seller.

The subject matter of this lesson is more fully presented in Volume VI Chapter 199 of"A Restatement of Rabbinic Civil Law" by E. Quint, published by Jason Aronson, Inc. and on sale at local Judaica bookstores.
Questions to quint@inter.net.il