Chapter 19.1
The Law of Real and
Personal Property
Real and personal property
Real property
Personal property
Land and interests
in land
Property other than
land - chattels
Tangible property
Intangible property
Transferable by delivery
(Choses in possession)
Transferable by assignment
(Choses in action)
Motor vehicles, furniture
textbooks, etc.
Accounts receivable.
insurance policies,
copyright, patents, etc.
The ownership of property
If we say person “owns” a piece of property we
mean that they have the right to:
 use and enjoy it;
 sell it;
 dispose of it by will or gift;
 retain possession of it for any period;
 mortgage it and let it;
 destroy it.
The transfer of ownership or title
Transfer of title in property may be by:
 sale,
 gift,
 will, or
 operation of law.
Nemo dat quod non habet
No one can give what they do not have.
You cannot transfer a better title than you have
yourself.
There are number of exceptions under the Land
Transfer Act 1952:
 sale by a mercantile agent
 sale of a vehicle by a motor vehicle dealer
 sale by a seller in possession under s27(1) Sale of
Goods Act 1908.
Personal Property:
the protection of
property and possessory
rights
The Personal Property Securities Act 1999
The scope of the Act:
 The enforceability of an interest in personal property created or
provided for by a transaction that secures payment for money or
performance of an obligation. This interest is called a "security
interest".
 The determination of priorities between security interests in the same
personal property.
 The determination of priorities between a security interest and another
type of interest ( for example, the interest of a buyer) in the same
personal property.
A system for regulating securities over personal
property must provide:
•
for an effective security agreement between the parties to the
agreement,
•
and ensure that the security agreement is enforceable against the parties
to it and third parties (i.e.,persons who are not parties to the security
agreement).
The Act creates two important concepts: attachment and perfection
Attachment of a security interest (when a security interest comes into existence)
occurs when:
•the secured party gives value for the loan,
• the debtor has rights in the personal property that is used as security for the loan,
•the security agreement is enforceable against third parties other than purchasers.
The perfection of security interests requires attachment together with one of the
methods of achieving perfection, such as
•registration of a financing statement; or
•the secured party taking possession of the personal property that is subject to a
security interest.
Perfection is relevant to giving a secured party priority over third parties who have
purchased the property.