ES 6 UNDERSTAND SALES,
CONSUMER, PROPERTY
AND CYBER LAWS
Objective 6.02 Understand property law
BB30 Business Law 6.02 Summer
2013
Real vs. Personal Property
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, ATVs, lawnmowers
– 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 destroy all the trees
on your property?
Surface rights include the right to destroy land – cut timber
and sell.
Is it legal to build a bridge over
your property?
Walking bridges have to purchase the rights from the owner
of the ground below.
Who owns the tree?
Property owners can force a neighbor to cut tree branches that
hang over their property.
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.
Riparian Rights
Riparian is the right to use the water that you live on.
Ownership includes the water under and touching your
property.
Can power companies run power
lines through your neighborhood?
Yes, easements (limited use of another’s land) 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.
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, location, design,
and size of fence. (Homeowner’s Associations)
Covenants – promise involving land use between buyer and seller
of land (must be in writing).
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 property, etc.
TRANSFER OF OWNERSHIP
• Deed – legal document use to transfer ownership.
• 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
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, but they cannot refuse to release
property.
BB30 Business Law 6.02 Summer
2013
Foreclosure
• Foreclosure - Right of mortgage holder to
seize property for payment of debt that is
past due.
– Comparable to repossession of personal
property
BB30 Business Law 6.02 Summer
2013
LEASING OF REAL PROPERTY
• Types of Leases
– Periodic tenancy
– Tenancy for years
– Tenancy at sufferance
– Tenancy at will
BB30 Business Law 6.02 Summer
2013
Types of Leases
• 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
BB30 Business Law 6.02 Summer
2013
Types of Leases
• Tenancy at sufferance – remaining in
possession of rented property after the lease
has expired
• Tenancy at will – possessing land without
an agreement as to the term of the lease or
the amount of rent
BB30 Business Law 6.02 Summer
2013
Rights and Duties of Tenant
• Rights:
– Right of possession
– Right to use property
– Right to assign the lease or sublet the premises
• Duties:
– Duty to pay rent
– Duty to take care of the property
– Duty of care to those who enter the property
BB30 Business Law 6.02 Summer
2013
Rights and Duties of Landlord
• 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
BB30 Business Law 6.02 Summer
2013