Legal Definitions - betterment act

A Betterment Act is a law that requires a landowner to compensate an occupant who has made improvements to the land under the mistaken belief that they are the real owner. The compensation usually equals the increase in the land's value generated by the improvements.

For example, if a person rents a piece of land and builds a house on it, but later finds out that they do not own the land, the Betterment Act would require the landowner to compensate the occupant for the value added to the land by the house.

Another example would be if a person mistakenly believes that they have inherited a piece of land and invests money into improving it, but later finds out that they are not the rightful owner. The Betterment Act would require the actual owner to compensate the occupant for the value added to the land by the improvements.