ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY AND CYBER LAWS BB30 Business Law 6.02 Summer 2013 ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY AND CYBER LAWS Objective 6.02 Understand property law

Real vs. Personal 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 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. Surface rights include the right to destroy land – cut timber and sell. 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 ground below. Walking bridges have to purchase the rights from the owner of the ground below. BB30 Business Law 6.02 Summer 2013

Who owns the tree? Property owners can force a neighbor to cut tree branches that hang over their property. Property owners can force a neighbor to cut tree branches that hang over their property. BB30 Business Law 6.02 Summer 2013

Who owns the oil under your house 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. 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. BB30 Business Law 6.02 Summer 2013

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. 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. BB30 Business Law 6.02 Summer 2013

Real Property Rights Surface Rights Rights to Air Space Mineral 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 of another’s land. Types: Appurtenant In Gross By Necessity By Prescription BB30 Business Law 6.02 Summer 2013

Easements – limited use of another’s land. Types: Appurtenant In Gross 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 of another’s land. Types: Appurtenant In Gross By Necessity By Prescription BB30 Business Law 6.02 Summer 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, location, design, 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 2013

Some neighborhoods have restrictive covenants Some neighborhoods have restrictive covenants. Restrict color of home, height fence, parking boats in driveway, location, design, 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 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 property, etc. 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. BB30 Business Law 6.02 Summer 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 invitee – person whom the possessor of real property has permitted to be on the property Delivery persons, social guests, etc. social guest – either a public invitee or a business invitee BB30 Business Law 6.02 Summer 2013

TRANSFER OF OWNERSHIP Title is to an automobile as a __Deed____ is to a home. What are the different types? 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. 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 BB30 Business Law 6.02 Summer 2013

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. 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 BB30 Business Law 6.02 Summer 2013

TRANSFER OF OWNERSHIP Adverse Possession Adversely, open, notorious, and continuously possess another’s property North Carolina Adverse Possession Statute: http://www.ncleg.net/EnactedLegislation/Statutes/PD F/ByArticle/Chapter_1/Article_4.pdf According to the NC statute, the adverse possessor must possess the land under "known and visible lines and boundaries" and the possession must be adverse "to all other persons." This means that the adverse possessor must have exclusive control and possession of the land, and that the possession must be open and hostile to the interests of the actual owner. This goes back to the common law grounds that adverse possession is based on -- to take action against the adverse possessor, the rightful owner must have the reasonable ability to see and discover the squatter. The statute also mandates a 20-year time period in which the adverse possessor must occupy the land. Adverse Possession Under Color of Title North Carolina makes specific provisions for a different statutory period when the adverse possession claim is made "under color of title." This means that the person making the adverse possession claim believed that he owned the property and has some sort of paperwork that claims to transfer title to him, but does not actually transfer title. This can be due to a forgery or some other defect in the purported title. If the adverse possessor is claiming the land under color of title, the statutory period of provision is shortened to seven years. North Carolina Adverse Possession Statute: http://www.ncleg.net/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_1/Article_4.pdf BB30 Business Law 6.02 Summer 2013

Adverse Posession Homeowners have the right to keep unwanted intruders off their property. People may do this with fences or with signs, or just by asking trespassers to stay away. In cases of serious, repeated annoyance or threatened harm, a land owner can call the police, who will usually warn the person to stay away and, if necessary, make an arrest. Another kind of trespass is more permanent: using another’s property as an owner would use it. If someone drives across your land every day, it is a trespass unless you have granted permission or the driver has a legal right, called an easement, to use that part of your property. A neighbor who puts up a fence two feet over the boundary line is trespassing, as is one whose garage has been on your property for several years. BB30 Business Law 6.02 Summer 2013

Adverse Possession You may be surprised to learn, that under certain circumstances, a trespasser can come onto your land, occupy it, and gain legal ownership of it. The legal term for this is "adverse possession." Through adverse possession, a trespasser can gain ownership of just a few feet of property or hundreds of acres. And the trespasser doesn’t need to intend to take the land by adverse possession. Sometimes it happens through an honest mistake—for example, a neighbor may have relied upon a faulty property description in a deed when building a fence on your property. BB30 Business Law 6.02 Summer 2013

Adverse Possession cont To qualify as adverse possession, the trespasser’s occupation of the land must be: hostile actual open and notorious, and exclusive and continuous for a certain period of time. BB30 Business Law 6.02 Summer 2013

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. Examples? Highways are widened. Build a prison. Flood land to create a reservoir for drinking water. New road built. Highways are widened. Build a prison. Flood land to create a reservoir for drinking water. New road built. BB30 Business Law 6.02 Summer 2013

Foreclosure Repossession is to an automobile as _________ is to a home. Foreclosure - Right of mortgage holder to seize property for payment of debt that is past due. Comparable to repossession of personal property 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 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 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