REAL AND PERSONAL PROPERTY
OBJECTIVE 09.02
COMPARE THE LEGAL RIGHTS OF ACQUISITION, TRANSFERAL
AND RENTING/LEASING OF REAL OR PERSONAL PROPERTY.
BAILMENTS
Bailment
An agreement created by the temporary delivery of
personal property by the owner to someone agreeing
that the property will be returned to the owner.
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Bailee - temporary possession property
Bailor – owner of property
Ex: autos parked in a garage
Mutual Benefit Bailments
Both parties receive benefit
 Duty of ordinary care on the bailee
 Results from a contract - consideration exchanged
 Most bailments are mutual benefit
Bailment by Necessity
Implied by law, a customer must give up possession of
property.
 Ex:
When you leave your clothes temporarily in the
dressing room while you try on a new outfit
Other Bailments
Gratuitous Bailment
 Free
of charge
 Only one party benefits
Extraordinary bailment
A
common carrier or hotel is strictly liable for damage
to bailed goods
Rights and Duties of Bailee

Rights:
 Mechanic’s
Lien -the right to retain property of another,
if not paid for service rendered
 To expect payment for services rendered

Duties:
 Of
reasonable care and protection of goods while in
custody of bailee
 To comply with terms of bailment
Rights and Duties of Bailor

Rights
 to
have goods protected
 to receive service as agreed upon
 to have goods returned in timely manner

Duties
 to
pay for service provided
 to warn of dangers or special care required
 to pick up goods in a reasonable time
Tortious Bailee

What is a tortious bailee?
A party who wrongfully retains lost property or stolen
property
 A party who wrongfully uses a bailed article for a purpose
other than that agreed upon by the parties

Ex: Parking valet who takes your nice car on a joy ride
REAL AND PERSONAL
PROPERTY
OBJECTIVE 09.02
COMPARE THE LEGAL RIGHTS OF ACQUISITION,
TRANSFERAL AND RENTING/LEASING OF REAL OR
PERSONAL PROPERTY.
PROPERTY OWNERSHIP
Real Property

Land and anything permanently attached, including:
 Buildings,
structures, fixtures
 Water, water rights
 Minerals on and below the surface of the earth.
 Trees & crops
 Air space above the surface


Grantor - conveys a deed to real property
Grantee – receives the deed
Personal Property

Anything other than real property, including:
Clothing, jewelry, furniture, appliances in a home
 Automobiles, ATVs, lawnmowers
 Equipment & machinery used in business
 Copyrights, patents, trademarks
 Software, stocks, loans, mutual funds



Must be delivered in order to transfer ownership.
Tangible or Intangible.
Intellectual Property



Includes copyrights, patents, trademarks and trade
secrets
Is an original work fixed in a tangible medium of
expression.
Examples: literature, computer software, musical
scores and lyrics, choreography, dramatic works,
unique product or process, symbols or word that
identify a product, commercially valuable information
that is kept secret
Methods to Acquire Property

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Purchase contract – earn money and use it to buy
Gift – includes intent, delivery and acceptance
Intellectual labor – creation of property
Inheritance – wills and trusts
Accession – farm animals naturally increase
Found property – lost or mislaid
Occupancy – possession of property that belongs to
no one else
Types of Deed
Quitclaim

Transfers a seller’s interest in a property but doesn’t warrant
that the seller owns any interest
General Warranty Deed
Warrants the title
 Most desirable for the buyer

Bargain and Sale Deed

Transfers title to property without giving warranties
Property Rights

Physical rights apply to:
 Surface
(the right to occupy the land, and develop it
with buildings, etc.)
 Subterranean Minerals or Water (rights to remove or
conserve)
 Air (right extends into upper atmosphere-but cannot
exclude aircraft from flying over property)
Eminent Domain

Right to make private property into public if it is for
the public good.
Ex: Highways are widened
 Owners
are paid the fair market value
Limits on Use of Property
Restrictive Covenants
Deed restrictions
Ex: homeowners association

Easements for limited use
Ex: Gas lines end at my driveway
Why buy a home?
(Supplemental)

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Rent
Home
Equity
Equity
Home
= Zero Ownership
= Equity
= Value of Home - Principle of
Loan, or
= Market Value - Debt in Property
= Personal Asset Accumulation
Why rent an apartment?
(Supplemental)

No large down payment required
No long term commitment to location
No upkeep to grounds and property
Bad credit, cannot get a loan
Not ready to own
More freedom to move

NEGATIVE: NO ASSET ACCUMULATION
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