Ownership of goods is an important part of your rights under the Consumer Rights Act 2015.

The Act applies to specific types of goods contracts. To understand which contracts are covered, see What Goods Contracts Are Covered?.

What Does “Ownership” Mean?

Ownership means legal title to the goods. The person who owns the goods has the legal right to possess and control them.

In most consumer transactions, ownership transfers from the trader to the consumer when the contract is completed and the goods are delivered.

The Trader Must Have the Right to Sell the Goods

Under the Consumer Rights Act 2015, the trader must have the right to supply the goods to you.

If the trader does not legally own the goods, or does not have authority to sell them, you may be entitled to remedies.

This is one of the core statutory protections. See What Statutory Rights Apply to Goods?.

When Does Ownership Transfer?

When ownership transfers depends on the type of contract.

For example:

Under Sales Contracts, ownership normally transfers when the contract is completed.
Under Hire-Purchase Agreements, ownership transfers only after all required payments are made.
Under a Contract for Transfer of Goods, ownership transfers as agreed in the contract, even if payment is not a traditional “price”.

What If the Goods Are Stolen?

If goods turn out to be stolen and the trader did not have the right to sell them, you may not obtain legal ownership.

In such cases, you may be entitled to:

Reject the goods.
Claim a refund.
Seek compensation.

The exact remedy will depend on the circumstances.

Retention of Title Clauses

Some contracts include “retention of title” clauses. These state that ownership remains with the trader until full payment is made.

Such clauses can be valid, but they must be clear and fair.

Even where ownership is retained, your statutory rights regarding quality and description still apply.

Key Point

The trader must have the legal right to supply the goods. Ownership usually transfers to you in a sales contract, but the timing can vary depending on the type of agreement.