---
title: Cede/ceded
description: When an asset is ceded (ownership is transferred) to a third party, it means that ownership of the asset has been transferred to that person or company according to the terms of a legal document. This
---

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# Cede/ceded

When an asset is ceded (ownership is transferred) to a third party, it means that ownership of the asset has been transferred to that person or company according to the terms of a legal document. This is often done as a way of raising collateral for a loan. The business owner may cede their house to the company that loans them money. When they repay the loan in full, the ownership of the house will return to the business owner. If, however, they cannot repay the debt, then the ownership of the house remains with the person or company it was ceded to.

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