Chose in Action is a legal term describing a personal property right that cannot be possessed physically but can be enforced through legal action. Instead of representing ownership of a tangible object, a chose in action gives its holder the right to collect a debt, recover money, enforce a contract, or pursue another legal claim. Common examples include the right to receive payment under a promissory note, collect insurance proceeds, recover damages from a lawsuit, or enforce a mortgage or other contractual obligation.
In real estate, a chose in action commonly arises in connection with mortgages, purchase agreements, leases, and other contracts that create enforceable legal rights. For example, a lender’s right to collect payments under a promissory note is a chose in action, as is a seller’s right to enforce a buyer’s obligations under a purchase contract. Because these rights are considered personal property rather than interests in land, they may often be assigned, transferred, or inherited separately from ownership of the underlying real estate, subject to applicable laws and the terms of the agreement.
