1. Understand Sales, Consumer, Property and Cyber Laws
Objective 6.02
PROPERTY LAW

2. Real Property
Real Property is the land and anything permanently attached to it including:
Buildings, structures, fixtures
Water, water rights
Minerals on and below the surface of the earth.
Trees & crops
Air space above the surface
Estate is the interest or right that a person has in real property.

3. Personal Property
Personal Property is 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.

4. Is it legal to destroy all the trees on your property?
Surface rights include the right to destroy land – cut timber and sell.

5. Is it legal to build a bridge over your property?
Walking bridges have to purchase the rights from the owner of the ground below.

6. Who owns the tree?
Property owners can force a neighbor to cut tree branches that hang over their property.

7. 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.

8. 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.

9. 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)

10. 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)

11. Rights of Ownership Possess, use and enjoy the property
Dispose of, sell, consume, modify, insure or destroy the property
Give the property away by will after death
Lease the property to a tenant

12. Limits on Use of Property
Police powers by government
Nuisance ordinances enacted by cities
Zoning ordinances enacted by cities to regulate
Health and public safety issues
Certain physical rights
Eminent domain
Deed restrictions
Easements

13. 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).

14. 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

15. Limits on Use of Property
Restrictive Covenants
Deed restrictions
Example- a homeowners association restricts parking cars in the street
Easements for limited use
Example- Gas lines end at my driveway but a neighbor wants to build a new home on an adjacent lot. I can sign an easement release so the utility company can continue the line to his new home by crossing my property.

16. 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.

17. 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.
Eminent
Domain

18. Duties Owed to Entrants on Land
Owner should take reasonable steps to prevent harm to those entering their land.
– occurs when a person is on the land without a right to be there
– person whom the possessor of real property has permitted to be on the property
Delivery persons, social guests, etc.
– either a public invitee or a business invitee
Trespass
Licensee
Invitee

19. TRANSFER OF OWNERSHIP
Title is to an automobile as a __________ is to a home.
DEED
What are the different types?

20. Transfer of Ownership 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 has title to 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

21. Transfer of Ownership - NC Law
Averse Possession / Squatter’s Rights:
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:

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