AD Banker Property and Casualty Practice Exam 2025 - Free Property and Casualty Practice Questions and Study Guide

A unique feature of a bailor's ownership in a property transfer is that the bailor retains ownership even while the bailee has custody of the property. This principle is fundamental to the concept of bailment, where one party (the bailor) transfers physical possession of property to another party (the bailee) for a specific purpose while maintaining ownership rights.

In a bailment situation, the bailor allows the bailee to use or take care of the property but does not transfer legal title to it. Therefore, the bailor can expect the property to be returned in its original condition after the purpose of the bailment has been fulfilled. This retention of ownership means that the bailor still holds rights regarding the property, such as the right to reclaim it after the agreement is fulfilled.

Understanding this feature is crucial for recognizing how bailment agreements work and the legal implications involved in the relationship between the bailor and bailee, such as liability for damages to the property while it is in the custody of the bailee.