Real and Personal Property 118-19 Real and Personal Property What is property? How can you obtain it? What can you do with it? OBE 118 Fall 2004 Professor McKinsey

Part III of OBE 118 Property Business Organizations Agency Law Employment Law Antitrust

Property A thing owned by someone A to use, consume, and possess something and to prevent others from doing the same

Types of Property Personal Property Real Property

Possession versus Ownership Possession is just one right among many that comes with ownership Ownership of some property is established by title, often registered (vehicles, real property, IP) Often we let people possess property and also give them a limited use of the property

Three Forms of Property Important to Business Real Property Personal Property Intellectual Property

Property Advice Nearly every new successful business venture centers around a form of property. Knowing how to obtain, control, and harness the power of property is a fundamental business skill you need to master. The rules of property continuously change and evolve, so stay current regarding the forms of property you are involved with.

Personal Property If it is not real property it is personal property Ownership of personal property can be obtained by: Sale (contract, you already learned this) Gift (be wary of this one if a death follows the gift) Creation Possession of PP by someone who may not own it often creates all sorts of legal issues. When someone has possession you must determine what rights they have with the property. They might own it But might merely have temporary possession

Bailments The temporary transfer of possession of personal property It is a way to give to someone rights short of ownership to PP without having a contract. Pages 643-647 explain bailments. There is also a handout on the website to help you with bailments.

Real Property (RP) Land and things attached to it including air space above it, surface and sub-surface waters, gases and minerals. The bundle of rights associated with land including ownership, possession, use, occupation, income production, mining, farming, and disposal.

Types of Ownership Individual Tenancy in Common vs. Joint Tenancy TIC JT Undivided, fractional interest Undivided, equal interests Equal right to possession Equal right to possession Assignable and inheritable Assignment destroys JT Interest is not inherited, it dissolves upon death Community Property Business form of ownership

Obtaining and Transferring RP Rights 118-19 Obtaining and Transferring RP Rights All RP is already owned, so the rights associated with it are transferred. Ownership transfer is called a “conveyance” and uses a “deed” which must be “recorded” to preserve the RP right. Limited rights are often transferred (easement, lease, etc) and not all require a deed.