- Slides: 29
What is Property? • • Property can be real or personal. It can be tangible or intangible. It is subject to ownership. A group of related legal rights.
Real Property • Land • Aka, realty • Surface of the earth and the water and minerals below the surface • Can also include air space above the land • Includes anything permanently attached to the land, or a fixture
Tangible Personal Property • Personal Property is either movable or intangible. • Tangible personal property items are goods. • The Uniform Commercial Code (UCC) is the law that generally governs transactions in goods.
Intangible Personal Property • Services • Transactions for the purchase of service are governed by the common law of contracts. • Intellectual Property – – – Copyrights Patents Trade Secrets Servicemarks Trademarks
Copyright © • Protects the expression of creative work, such as the work of an author, artist, or composer. • Owners of copyright have the exclusive right to reproduce, sell, perform, or display the work. • Copyrights owned by the creator last for the life of the creator plus 70 years
Trademarks™ and Servicemarks • Trademarks are words, marks, symbols, or devices that identify a product of a particular manufacturer or merchant • Servicemarks are unique words, marks, or symbols that identify a service as opposed to a product. • Trademarks may be registered but not required.
Patents • The grant of exclusive right to make, use, and sell a novel or new useful product or process. • Novel means no one has ever thought of the product or process before. • Useful means that the product or process can help people do things.
Trade Secrets • Commercially valuable information that the owner attempts to keep secret. • If an employee leaves and sells the trade secrets, that employee and the buyer are liable to the employer.
Acquiring Property • Real or personal property is most commonly acquired by contract, earning money to purchase items. • Gifts – The donor must manifest an intent to transfer ownership – Deliver the property • Accession is the right of an owner of property to an increase in that property • Finding – Anyone who loses property has the right to recover it from the finder – True ownership must be proved
Acquiring Property • Occupancy means acquiring a title by taking possession of personal property that belongs to no one else. • Inheritance means acquiring either real or intellectual property from the owner if he or she dies.
Major Estates in Land • The powers of ownership are defined by the estate in land that the land owner receives. • Each estate is comprised of a certain bundle of ownership rights. • A will, deed, or lease will determine which estate is transferred. • When an estate is transferred from a grantor to a grantee by deed, the transaction is called a conveyance.
Types of Estates • A fee simple absolute is the estate will all the ownership rights. • The owner of this estate exercises all the power allowed by law. • Conditional estates make the ownership conditional on some act or event. • Life estate is ownership only for the length of a life. • Nonfreehold estates, or tenancies, involve ownership for a limited period of time, specified by a lease.
Transfer of Ownership • The main ways to transfer property are through sale with deed, by gift, or by inheritance. • A deed is the legal document used to transfer ownership of real property. – Quitclaim deeds transfer any interest the grantor may have in the real property, but does not guarantee that the grantor owns anything or that the grantee receives anything.
Transfer of Ownership – A warranty deed, however protects the grantee by providing several enforceable grantor’s warranties, including: • Grantor has the legal ability to transfer the realty in the deed • Are no undisclosed claims or encumbrances against the property • Grantee shall have quiet enjoyment of the property
Transfer of Ownership • Inheritance is when property is transferred through a will. • Adverse Possession occurs when you adversely and exclusively possess in an open and notorious way the land of another private person. – Possession must be continuous for the statutory period of 5 to 21 years, depending on the state law.
Transfer of Ownership • Dedication or Eminent Domain – Dedication typically involves giving real property to the government, such as a city, for use as a park or roadway. – Eminent domain is the power of the government to take private property for public use in exchange for the fair market price.
Licenses and Easements • Rights that others have in your land • Licenses are temporary, revocable rights to some limited use of another’s land. – It is personal, nontransferable, not inheritable, and not an estate in land. • Easements are irrevocable rights to some limited use of another’s land. – Generally given for a substantial period of time. – May be appurtenant, in gross, be necessity, or by prescription.
Liens • A legal right in another’s property given as a security for the performance of a financial obligation. • Voluntary liens are like mortgages or trust deeds. • Involuntary liens arise from things like not paying property taxes.
Rental Realty • A lease is an agreement in which one party receives temporary possession of another’s real property in exchange for rent. • Rent is the consideration given in return for temporary possession. • The lease creates a relationship between the landlord (owner of property) and the tenant (renter). • The ownership interest of the tenant is called a leasehold estate.
Leasehold Estates • Periodic Tenancy arises when the leasehold is for a renewable period of time with rent due at stated intervals. • Tenancy for Years is when a leasehold is for a definite period of time, like 6 months. • Tenancy at Sufferance is when a tenant remains in possession after a lease has expired. • Tenancy at will is when a party possesses land with the owner’s permission but without an agreement of the lease amount.
Tenants Rights • The tenant has a right to the possession of the real property starting at the time agreed upon in the lease. • The tenant is allowed to use the leased property in the manner specified in the lease. • Unless restricted by the terms of the lease, a tenant may sublet the premises.
Tenants’ Duties • Duty to pay rent as agreed upon in the lease. • Duty to take care of the property in a reasonable manner. • A business or residential tenant in possession of leased property has a duty of care to those who enter the property.
Landlord’s Rights • Right to rent – A tenant who vacates the property before the end of the lease remains liable for the unpaid rent. – If the tenant fails to pay rent and remains in possession, the landlord may sue to evict the tenant. • Right to regain the realty and fixtures
Landlord’s Duties • Duty to maintain the premises • Torts duty, one who is injured on the premises could sue the landlord. • Duty ton pay property taxes. • Fair Housing Act Duties – Illegal to discriminate against lessees on the basis of race, religion, sex, national origin, handicap, or marital status. – Must allow a handicapped person to make reasonable modifications. • Duty on voluntary termination-a lease can be terminated by agreement before expiration.
Bailment • The transfer of possession without the transfer of ownership. • Temporary possession and control of goods is the focus of the bailment relationship • Bailor is the party who gives up possession of the property • Bailee is the party who accepts possession and control
Bailments • • Subject is personal property A transfer of temporary possession A transfer of temporary control Both parties intend return of the goods
Common Carrier • A common carrier agrees, for a fee, to transport goods for anyone who applies, provided the goods are lawful and fit for shipment. • Common carriers have the right to: – Enforce reasonable rules and regulations for the conduct of its business – Charge an amount negotiated with the bailor or the scheduled rate – Charge demurrage, a few for use of the transportation vehicle when it is not loaded or unloaded at the agreed time – Enforce a carrier’s lien, retain the goods until charges for transportation and incidental sesrvices are paid
Bailment for Sale • With Consignment, ownership remains with the manufacturer or wholesaler (the bailor) until the goods are sold. • Retailers who display the consignment goods are bailees. • Bailment is also created when a merchant sends good “on approval” to a prospective buyer. • The prospective buyer may use the goods to decide where to buy them.