1. Chapter 1 – Introduction to Real Estate
Real Estate Law
Chapter 1 – Introduction to Real Estate

2. What is property? Your “stuff” is your property
But property is more than just stuff
More important – the rights associated with stuff
Right to use
Right to modify
Right to sell
Right to give away
Right to leave in will
Right to profits
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

3. Bundle of rights Think of property as a bundle of rights
It is the rights that are the property
It is impossible to list all of the rights
Eg – oil beneath the property was once considered a defect
Some rights are created by transactions
More on this later
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

4. Bundle of rights, II
The bundle can be divided and transferred to others
Tenant - landlord
Tenant receives some rights
Right to be there
Right to exclude others
Right to quiet enjoyment (whatever that is)
Etc.
Landlord retains some rights
Right to receive rent
Right to sell property
Right to leave in will
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

5. Ownership = holding all available rights
If you completely own property, you have all of the available rights
There is one very special right in the bundle that you can never have
This right is held by the “king” (the government)
The king “always” has had this right
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

6. Master Stick I refer to this right as the “Master Stick” in the bundle
It is this stick that gives the government powers over your property that always exist
Tax the property
Limit what can be done with the property
Force a sale to the government (eminent domain)
Etc.
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

7. How did the government get the master stick?
In essence, it always had it and retained it
In Ohio, land was transferred to individual owners from the federal government
Much of Ohio lands were transferred as payment for services rendered during the Revolutionary War
These transfers did not include rights associated with the master stick
Roots in the Battle of Hastings, 1066
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

8. Real v. Personal Property
Real property
Dirt and everything more less permanently attached to it
Land
Buildings
Trees
Etc.
Personal property
Everything else
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

9. Language Real Property Personal Property Realty Real Estate Land
Often just “property”
Personal Property
Personalty
Chattels
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

10. Fixtures
Real property includes things that are more or less permanently attached to dirt
These are called Fixtures
A fixture is something that was once personalty that has become realty
Many people (including realtors) misunderstand fixtures
Copyright © 2016 Wm. Bruce Davis. All rights reserved.

11. The full set of PowerPoint slides is available upon adoption
The full set of PowerPoint slides is available upon adoption. for more information.
Copyright © 2016 Wm. Bruce Davis. All rights reserved.