The term “law” can refer to a piece of legislation or a court act, particularly in real estate transactions. Common law countries draft laws through elected officials and all laws begin as bills. Acts of law in property disputes are enforced by courts and result in a transfer of ownership. Most property transfers occur through human deed, while acts of God are outside the law’s jurisdiction. Legal title transfers only occur in highly contested situations.
The phrase “law” originates in the common law and can have one of two meanings, depending on the context. A piece of legislation can be a proposed or promulgated law enacted by a country’s legislature or parliament. It can also be a court act, especially in regards to real estate transactions. Under English common law, property can be lost or transferred in one of three ways: by act of man, act of law, or act of God. A statutory act in this context is a court-ordered transfer of title, which requires the transfer of title to land or other property from one person or entity to another.
Common law countries include the United Kingdom, Canada, Australia and the United States. Under the common law system, potential laws are drafted, debated, and promulgated by elected officials before they are signed into active law by the president or prime minister. All laws begin as bills, which become proposed acts once a majority of lawmakers can agree on terms. The acts become law once signed.
The UK Family Law Act, the Australian Trade Practices Act and the US Copyright Act are examples of national laws known as acts. Each can properly be called an act of law. Acts of law in this context are enforceable by any court nationwide throughout the country concerned and can only be changed by legislative review.
An act of law in relation to the transfer of title to property is somewhat different. Common law courts generally have the ability to intervene in property disputes, including mortgage payment due dates, loan defaults, embezzlement, and death of the owner without a will. In doing so, the courts typically look at all the relevant facts, sometimes hear testimony, and come to a conclusion as to who owns the property. Such a conclusion is usually framed as a decree establishing the rightful owner and ordering the transfer of ownership if necessary. The resulting property is said to have been created by a “deed of law”, which is a legal event.
Most property transfers are created by human deed, which includes the ordinary sale of property and the purchase of property, as well as lease and inheritance transfers. An act of God is typically understood as a law to mean loss of property or destruction due to weather, storm, fire, or natural disaster. Events in both categories fall outside the purview of the strong arm of the law, which is what makes a law transfer act different. By an act of law, the court intervenes in what is otherwise a matter of private ownership and forced transfer of title. Legal title transfers only happen in highly contested situations, usually involving lawsuits and trials.
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