Chapter 21
Law of Property: Real,
Personal, and Intellectual
13-1
Definition of real property

Land and everything permanently attached to it.
 An
item is “attached” if:
 removal
would cause damage to the property, or
 it is essential to the functioning of the structure.

Fixtures
 Personal
property that is later permanently
attached to the realty.
 Exception for trade fixtures.

Extent of ownership
 Air
space
 Water rights
 Mineral rights
13-2
Interests in real property

Fee simple absolute
 Most

complete estate one can own.
Conditional estate
 Subject
to a condition that could terminate the
interest.

Life estate
 Ownership
lasts until death, then passes to another
party.
 Holder of life estate cannot waste the property.

Future interest
 Present
ownership of right to possess land
sometime in the future.
13-3
Interests in real property (continued)

Leasehold estates
A possessory interest.
 Tenant can exclude everyone else, including the landlord.
 Sublease.


Easements
Irrevocable right to use a portion of another’s land.
 By express agreement.
 By prescription.




Created by open use of portion of another’s property for
statutory period.
By necessity: when parcel of land is landlocked.
License

Temporary, revocable right to be on someone else’s
property.
13-4
Co-ownership

Tenancy in common





Joint tenancy





Can own unequal shares.
Can sell without consent of other owners.
Interest can be attached by creditors.
Heirs receive interest at death.
Each owns an equal share.
Can sell without consent of other owners.
Interest can be attached by creditors.
Other owners receive interest at death.
Tenancy by the entirety





Only for married couples.
Need consent of other owner to sell.
Creditors of only one owner cannot attach the property.
Upon death, ownership passes to other owner.
Upon divorce, becomes tenancy in common.
13-5
Voluntary transfer of real property

A proper deed will:








Deed must be




Identify grantor and grantee.
Express grantor’s intent to convey the property.
Identify type and percentage of ownership.
State price paid.
Describe the physical boundaries of the property.
Specify easements and restrictions, if any.
Identify warranties and promises made by grantor.
executed
delivered
accepted
Recording of deed.


Not required by law.
But should always be done to protect grantee’s interest.
13-6
Types of Deeds

General warranty deed: grantor gives covenant:







of seisen: a promise she owns the title she is conveying.
of right to convey: a promise she has the right to convey her interest.
against encumbrances: promise there are no mortgages or other liens not
stated in the deed.
for quiet enjoyment: promise to defend grantee’s title against any
challenges.
of further assurances: promise to furnish any necessary documents
grantee needs to perfect his title.
Special Warranty deed : Warranties limited to time
of Grantors ownership.
Quitclaim deed
Grantor conveys title.
 Grantor makes no additional covenants.

13-7
Involuntary transfer of real property

Adverse possession
 A person
can become the owner of realty that
belongs to another if he:
 treats
realty as his own
 openly
 without permission of the true owner
 for the statutory period of years.

Condemnation
 Eminent
domain
 Government
acquires ownership of private property.
 For public purpose.
 Must pay just compensation.
13-8
Restrictions on land use

Restrictive covenants
 Entered
into voluntarily by parties.
 Agree to use or not use land in particular ways.

Zoning
 Restriction
of land use.
 To allow for orderly growth and development
 To protect health, safety, and welfare of citizens.
 Variance
 Permission
to use land in a manner prohibited by the
zoning laws.

Other statutory restrictions on land use
 Historic
preservation
13-9
Personal property

Tangible
 material

Intangible
 without

and movable
a physical form
Voluntary transfer of personal property
 Title
to property
 passes
when parties so intend.
 Transfer
by purchase.
 Transfer by gift.
 Delivery
of the gift.
 Donative intent.
 Acceptance by the donee.
13-10
Personal property (continued)

Involuntary transfer of personal property

Abandoned property


Lost property


Owner has accidentally dropped or left somewhere.
Mislaid property.


Property discarded by original owner.
Owner intentionally placed property somewhere but has forgotten where.
Bailments
 One
party (the bailor)
 transfers possession of personal property
 to another party (the bailee).
 Might be for benefit of:
the bailor
 the bailee
 of both (mutual benefit)

13-11
Trademarks

Distinctive mark, word, design, picture or
arrangement
 used
by a seller in conjunction with a product
 tending to cause the consumer to identify the
product with the producer.



Common law protection.
Registration with U.S. Patent Office.
Infringement.
 Likelihood
of confusion.
 Remedies
 Damages
 Injunction
13-12
Trade Secrets and Patents

Trade secret





A process, product, method of operation, or compilation of
information
 that gives a businessperson an advantage over her
competitors.
Includes inventions and designs.
Protected from unlawful appropriation
 so long as it is kept secret.
Lawful to discover the secret by reverse engineering.
Patents



Legal protection for a:
 product, process, invention, machine, or for certain plants.
Must be new and useful.
Cannot be used for
 tying arrangements
 cross-licensing
13-13
Copyrights

Protection for expression of creative ideas.
 Lasts

for life of creator plus 50 years.
Such works as:
 books
 periodicals
 musical
compositions
 motion pictures
 art
 computer programs


Infringement
Fair use
 For
criticism, comment, news, teaching, research.
13-14