1. ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY AND CYBER LAWS
BB30 Business Law 6.02 Summer 2013
ES 6 UNDERSTAND SALES, CONSUMER, PROPERTY AND CYBER LAWS
Objective 6.02 Understand property law

2. Real vs. Personal 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
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.
BB30 Business Law 6.02 Summer 2013

3. Is it legal to destroy all the trees on your property?
Surface rights include the right to destroy land – cut timber and sell.
BB30 Business Law 6.02 Summer 2013

4. Is it legal to build a bridge over your property?
Walking bridges have to purchase the rights from the owner of the ground below.
BB30 Business Law 6.02 Summer 2013

5. Who owns the tree? BB30 Business Law 6.02 Summer 2013
Property owners can force a neighbor to cut tree branches that hang over their property.
BB30 Business Law 6.02 Summer 2013

6. 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.
BB30 Business Law 6.02 Summer 2013

7. Riparian Rights BB30 Business Law 6.02 Summer 2013
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.
BB30 Business Law 6.02 Summer 2013

8. Real 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)
BB30 Business Law 6.02 Summer 2013

9. 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
BB30 Business Law 6.02 Summer 2013

10. 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).
BB30 Business Law 6.02 Summer 2013

11. 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.
BB30 Business Law 6.02 Summer 2013

12. 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
BB30 Business Law 6.02 Summer 2013

13. TRANSFER OF OWNERSHIP
Title is to an automobile as a __________ is to a home.
What are the different types?
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 may have in 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
BB30 Business Law 6.02 Summer 2013

14. TRANSFER OF OWNERSHIP Adverse Possession
Adversely, open, notorious, and continuously possess another’s property
North Carolina Adverse Possession Statute:
F/ByArticle/Chapter_1/Article_4.pdf
According to the NC statute, 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:
BB30 Business Law 6.02 Summer 2013

15. 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.
BB30 Business Law 6.02 Summer 2013

16. 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
Foreclosure - Right of mortgage holder to seize property for payment of debt that is past due.
Comparable to repossession of personal property
BB30 Business Law 6.02 Summer 2013

17. LEASING OF REAL PROPERTY
Types of Leases
Periodic tenancy
Tenancy for years
Tenancy at sufferance
Tenancy at will
BB30 Business Law 6.02 Summer 2013

18. Types of Leases
Periodic tenancy – renewable period of time with rent due at stated intervals
Week to week, month to month, etc.
Tenancy for years –definite period of time stated, including stated ending date. Can be for less than one year
BB30 Business Law 6.02 Summer 2013

19. Types of Leases
Tenancy at sufferance – remaining in possession of rented property after the lease has expired
Tenancy at will – possessing land without an agreement as to the term of the lease or the amount of rent
BB30 Business Law 6.02 Summer 2013

20. Rights and Duties of Tenant
Right of possession
Right to use property
Right to assign the lease or sublet the premises
Duties:
Duty to pay rent
Duty to take care of the property
Duty of care to those who enter the property
BB30 Business Law 6.02 Summer 2013

21. Rights and Duties of Landlord
Receive rent
Right to evict tenant if lease is violated
Right to regain possession of property at end of lease
Duties:
Duty to provide habitable premises
Duty to conform to governmental requirements
BB30 Business Law 6.02 Summer 2013