ACTG 6100 Legal Issues Week 8 REAL PROPERTY

Learning Objectives for this Chapter Define Property Identify the categories of property Explain the difference between the forms of concurrent ownership Identify the elements of Adverse Possession Define Eminent Domain and identify the two restrictions placed on its use in the U.S. Constitution Identify the 3 areas of law that impact landlord-tenant relationships Identify the duties and potential liabilities of landlords and of tenants

Define Property Property defines the relationship between people and things. Property is a bundle of rights: It is the basis of an expectation of deriving certain advantages from a thing. Before laws were made there was no property. Take away laws and property ceases. UsePossessTransferExclude

Identify the Categories of Property Real – land and everything affixed to it. Fixed, immovable and permanent. Personal – Everything that is not real property Tangible Intangible Intellectual Property Fixtures – items of personal property that become part of real property. XYZ, Inc. owns a 100 acre farm. Smith owns 100% of the stock.

Concurrent Ownership Tenancy in Common Undivided interest Freely transferable Presumed Joint Tenancy with Right of Survivorship Must be expressed Passes by operation of law at the death of one But, can be easily severed

Concurrent Ownership Tenancy by the Entirety Married Couples Only Presumed when married Passes to survivor by operation of law Not easily severed Creditors of one cannot attach***TBETrust Community Property Married Couples Only Property owned jointly unless they have expressly agreed to hold it separately. Upon death of the first, ½ passes to survivor, ½ though the decedent’s estate

Identify the Elements of Adverse Possession Physical Possession - actual Open and Notorious Adverse – claim of right - Hostile Continuous Exclusive Why would the legal system sanction the transfer of ownership by adverse possession?

Eminent Domain The power of the government to take private property 5 th Amendment to the U.S. Constitution For public use And upon just compensation

Landlord-Tenant Relationships Landlord’s duties: Quiet Enjoyment v. Constructive Eviction To Maintain the Premises To Return the Security Deposit Tenant’s duties: Pay Rent Use Premises Properly Property LawContract LawTort Law Duty to Mitigate Damages Liability for Injuries: Duty Breach Causation – Actual and Proximate Injury