REAL AND PERSONAL PROPERTY OBJECTIVE COMPARE THE LEGAL RIGHTS OF ACQUISITION, TRANSFERAL AND RENTING/LEASING OF REAL OR PERSONAL PROPERTY. BAILMENTS

Bailment An agreement created by the temporary delivery of personal property by the owner to someone agreeing that the property will be returned to the owner.  Bailee - temporary possession property  Bailor – owner of property Ex: autos parked in a garage

Mutual Benefit Bailments Both parties receive benefit  Duty of ordinary care on the bailee  Results from a contract - consideration exchanged  Most bailments are mutual benefit

Bailment by Necessity Implied by law, a customer must give up possession of property.  Ex: When you leave your clothes temporarily in the dressing room while you try on a new outfit

Other Bailments Gratuitous Bailment  Free of charge  Only one party benefits Extraordinary bailment  A common carrier or hotel is strictly liable for damage to bailed goods

Rights and Duties of Bailee  Rights:  Mechanic’s Lien -the right to retain property of another, if not paid for service rendered  To expect payment for services rendered  Duties:  Of reasonable care and protection of goods while in custody of bailee  To comply with terms of bailment

Rights and Duties of Bailor  Rights  to have goods protected  to receive service as agreed upon  to have goods returned in timely manner  Duties  to pay for service provided  to warn of dangers or special care required  to pick up goods in a reasonable time

Tortious Bailee  What is a tortious bailee?  A party who wrongfully retains lost property or stolen property  A party who wrongfully uses a bailed article for a purpose other than that agreed upon by the parties Ex: Parking valet who takes your nice car on a joy ride

REAL AND PERSONAL PROPERTY OBJECTIVE COMPARE THE LEGAL RIGHTS OF ACQUISITION, TRANSFERAL AND RENTING/LEASING OF REAL OR PERSONAL PROPERTY. PROPERTY OWNERSHIP

Real 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  Grantor - conveys a deed to real property  Grantee – receives the deed

Personal Property  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.  Tangible or Intangible.

Intellectual Property  Includes copyrights, patents, trademarks and trade secrets  Is an original work fixed in a tangible medium of expression.  Examples: literature, computer software, musical scores and lyrics, choreography, dramatic works, unique product or process, symbols or word that identify a product, commercially valuable information that is kept secret

Methods to Acquire Property  Purchase contract – earn money and use it to buy  Gift – includes intent, delivery and acceptance  Intellectual labor – creation of property  Inheritance – wills and trusts  Accession – farm animals naturally increase  Found property – lost or mislaid  Occupancy – possession of property that belongs to no one else

Types of Deed Quitclaim  Transfers a seller’s interest in a property but doesn’t warrant that the seller owns any interest General Warranty Deed  Warrants the title  Most desirable for the buyer Bargain and Sale Deed  Transfers title to property without giving warranties

Property Rights  Physical rights apply to:  Surface (the right to occupy the land, and develop it with buildings, etc.)  Subterranean Minerals or Water (rights to remove or conserve)  Air (right extends into upper atmosphere-but cannot exclude aircraft from flying over property)

Eminent Domain  Right to make private property into public if it is for the public good. Ex: Highways are widened  Owners are paid the fair market value

Limits on Use of Property Restrictive Covenants  Deed restrictions Ex: homeowners association Easements for limited use Ex: Gas lines end at my driveway

Why buy a home? (Supplemental)  Rent = Zero Ownership  Home = Equity  Equity = Value of Home - Principle of Loan, or  Equity = Market Value - Debt in Property  Home = Personal Asset Accumulation

Why rent an apartment? (Supplemental)  No large down payment required  No long term commitment to location  No upkeep to grounds and property  Bad credit, cannot get a loan  Not ready to own  More freedom to move  NEGATIVE: NO ASSET ACCUMULATION