# retention of title / delivery with reservation of title

*Last updated: 2026-06-26*

> Retention of title is a contractual clause that ties the transfer of ownership to full payment of the purchase price, giving sellers a practical safeguard when trading on credit.

Retention of title is a contractual clause that ties the transfer of ownership to full payment of the purchase price, giving sellers a practical safeguard when trading on credit. Until payment is complete, the seller remains the legal owner and may demand return of the goods in the event of default. In international trade and freight forwarding, this has direct operational consequences: a freight forwarder may withhold goods until outstanding charges are settled, and a seller may instruct that a shipment be stopped or rerouted. The buyer may typically use the goods in the meantime, but legal title passes only on final payment. This distinguishes retention of title from a pledge, where the creditor holds the asset physically as security.

**Source:** [https://de.wikipedia.org/wiki/Eigentumsvorbehalt](https://de.wikipedia.org/wiki/Eigentumsvorbehalt)

## Quick Facts

| Property | Value |
|---|---|
| Term | retention of title / delivery with reservation of title |
| Language | EN |
| Word count | 120 |
| Last updated | 2026-06-26 |
| Source | https://de.wikipedia.org/wiki/Eigentumsvorbehalt |

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