Real vs. Personal Property
ES 6 UNDERSTAND SALES,
CONSUMER, PROPERTY
AND CYBER LAWS
Objective 6.02 Understand property law
BB30 Business Law 6.02 Summer
2013
Is it legal to destroy all the trees
on your property?
Surface rights include the right to
destroy land – cut timber and sell.
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Who owns the tree?
Property owners can force a
neighbor to cut tree branches that
hang over their property.
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Real
Personal
• 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
•
Anything other than real property,
including:
– Clothing, jewelry, furniture,
appliances in a home
– Automobiles,
A
bil ATVs,
ATV llawnmowers
– Equipment & machinery used in
business
– Copyrights, patents, trademarks
– Software, stocks, loans, mutual funds
•
•
Must be delivered in order to transfer
ownership.
May be tangible or intangible.
BB30 Business Law 6.02 Summer
2013
Is it legal to build a bridge over
your property?
Walking bridges have to
purchase the rights from the
owner of the gground below.
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2013
Who owns the oil under your house? What if
you neighbor pumps oil under his/her
property, but the oil comes from under your
house?
Mineral rights (solid minerals and fluids) are
included in home ownership. Doctrine of
capture states that as long as the pump is on
your property it may extract outside of its own
property.
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2013
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Riparian Rights
Riparian is the right to use the water that you
live on. Ownership includes the water under
and touching your property. State laws may
apply.
Real Property Rights
• Surface Rights
– Occupy, develop, waste, or destroy land.
• Rights to Air Space
– Air space above you property is part of home.
• Mineral Rights
– Right to dig or mine the earth below your property.
• Water Rights
– Water on the surface and under are owned (unless states
have specific laws)
BB30 Business Law 6.02 Summer
2013
Can power companies run power lines through your
neighborhood?
Yes, easements allow for the line to run through properties.
Power companies may pay to lease property to allow for lines
to run through existing yards as new lines are needed.
Easements may already exist when purchasing a property.
Easements – limited use
se of another’s land.
land
Types:
Appurtenant
In Gross
By Necessity
By Prescription
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2013
Can neighborhoods restrict property owners from
painting their house any color they want or parking
too many cars in your yard?
Some neighborhoods have restrictive covenants.
Restrict color of home, height fence, parking boats in
driveway,
y location, design,
g and size of fence.
Covenants – promise involving land use between
buyer and seller of land (must be in writing).
BB30 Business Law 6.02 Summer
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BB30 Business Law 6.02 Summer
2013
Can the city restrict the use of your property?
Zoning Ordinance – the use of your property may be
restricted by zoning ordinances. This may include
public health, safety, morals and general welfare of
you, your property, and neighbors. Size of the
house, what it is used for (business), condition of
pproperty,
p y, etc.
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2013
Duties Owed to Entrants on Land
Owner should take reasonable steps to prevent
harm to those entering their land.
•
Trespassing – occurs when a person is on the land without
a right to be there
• Adverse Possession – person whom the possessor of real
property has permitted to be on the property
– Delivery persons, social guests, etc.
• Invitee – either a public invitee or a business invitee
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TRANSFER OF OWNERSHIP
• Title is to an automobile as a deed is to a home.
• Deed – legal document use to transfer ownership.
• Quitclaim deed – transfers only whatever rights and interests the
grantor may have in the property. Doesn’t guarantee that the grantor
may have in the property.
property
What are the different types?
• Warranty – protects the grantee by providing warranties to the grantor.
Warranties include the following:
• grantor has legal ability to transfer the realty described in the deed
• No undisclosed claims or encumbrances exist against the property
• Grantee shall have “quiet enjoyment” of the property without
interference
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Dedication and Eminent Domain
• Dedication – giving real property to the government for
use as a park or roadway
• Eminent domain – power of the government to take
private property for public use if it is for the public good.
– Owners are paid the fair market value of the property,
property
but they cannot refuse to release property.
– Examples?
• Highways are widened.
• Build a prison.
• Flood land to create a reservoir for drinking water.
• New road built.
TRANSFER OF OWNERSHIP
Adverse Possession
• Adversely, open, notorious, and
continuously possess another
another’ss property
North Carolina Adverse Possession Statute:
http://www.ncleg.net/EnactedLegislation/Stat
utes/PDF/ByArticle/Chapter_1/Article_4.pdf
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Foreclosure
• Repossession is to an automobile as
foreclosure is to a home.
– Right of mortgage holder to seize property for
payment of debt that is past due
– Comparable to repossession of personal
property
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BB30 Business Law 6.02 Summer
2013
LEASING OF REAL PROPERTY
Types of Leases
• Types of Leases
– Periodic tenancy
– Tenancy for years
– Tenancy at sufferance
– Tenancy at will
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• Periodic tenancy – renewable period of time
with rent due at stated intervals
– Week to week, month to month, etc.
• Tenancy for years –definite period of time
stated, including stated ending date. Can be
for less than one year
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Types of Leases
Rights and Duties of Tenant
• Tenancy at sufferance – remaining in
possession of rented property after the lease
has expired
p
• Rights:
• Tenancy at will – possessing land without
an agreement as to the term of the lease or
the amount of rent
• Duties:
– Right of possession
– Right to use property
– Right to assign the lease or sublet the premises
– Duty to pay rent
– Duty to take care of the property
– Duty of care to those who enter the property
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BB30 Business Law 6.02 Summer
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Rights and Duties of Landlord
Terms
• Rights:
– Receive rent
– Right to evict tenant if lease is violated
– Right to regain possession of property at end of lease
• Duties:
– Duty to provide habitable premises
– Duty to conform to governmental requirements
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• Constructive eviction - the action taken
by the landlord when rent is due
• rent control - the law that limits the
amount of rent charged to a tenant
• Implied warranty of habitability - an
automatic warranty in a lease that
requires a landlord to keep the property
fit for rental
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