1. Essentials Of Business Law Chapter 21 Real And Personal Property McGraw-Hill/Irwin Copyright © 2007 The McGraw-Hill Companies, Inc. All rights reserved.

2. Essentials of Business LawChapter 21-2 Types Of Property Real property  Land and everything attached to the land Minerals Permanent additions to the land Personal property  Includes all property, other than real property  Tangible Furniture, clothing, books  Intangible Patents, copyrights, goodwill, trademarks, service marks

3. Essentials of Business LawChapter 21-3 Acquiring Title To Personal Property Title is the actual ownership of property  Can be transferred from one person to another Finding lost personal property  Finder has a legal responsibility to make reasonable efforts to return the property Abandoned property  Title is transferred to the first person who takes control over it Accession  The right of an owner of property to any increase in the property

4. Essentials of Business LawChapter 21-4 Acquiring Title To Personal Property Gifts  The voluntary transfer of property by one person to another without consideration or payment Three requirements for gifts:  The donor must intend to make a gift  The gift must actually be delivered to the donee  The donee must accept the gift Inter vivos gift  Property given while both parties are alive Gift in causa mortis  Property given by a living person who expects to die from a known cause

5. Essentials of Business LawChapter 21-5 Ownership Of Property Severalty ownership  All the rights of ownership in a particular piece of property are held by one person Multiple ownership  Joint tenancy Two or more persons own equal shares of property Right of survivorship  Tenancy by the entirety Joint ownership of property by husband and wife in which both have the right to the entire property Right of survivorship

6. Essentials of Business LawChapter 21-6 Ownership Of Property Multiple ownership  Tenancy in common Joint ownership of property by two or more persons Ownership interest of any one of the owners can be sold, transferred, or inherited Ownership is passed to that person’s heirs  Community property Property acquired by either one of the spouses during a marriage is belongs to both parties

7. Essentials of Business LawChapter 21-7 Real Property Land  Rights to land include: Airspace above the land Minerals Buildings  Structure permanently placed or constructed on or beneath the surface of the land Fixtures  Personal property added to land or to buildings so that they become a part of the structure Planted shrubbery, trees, satellite dishes

8. Essentials of Business LawChapter 21-8 Other Rights In Land Subterranean rights  The right to extract minerals Air rights  The right to build on or over the land Easements  A right or interest in land granted to a party to make beneficial use of the land owned by another  Cannot be sold or transferred once they are recorded Licenses  Granting a party the right to enter the land for a specific purpose

9. Essentials of Business LawChapter 21-9 Ownership Interests In Real Property Freehold estate  A person owns the land either for life or forever  Fee simple The owner of a freehold estate who holds it absolutely  Life estate A person who holds a freehold estate only for his or her lifetime Leasehold estate  A person has an interest in real property that comes from a lease  Right of possession, but not ownership

10. Essentials of Business LawChapter 21-10 Transfer Of Real Property Deed  The instrument that conveys an interest in real property between parties Grantor  The party who conveys real property Grantee  The party to whom the real property is conveyed Consideration is not required in the transfer of real property

11. Essentials of Business LawChapter 21-11 Deeds Quitclaim deed  Transfers whatever interest a grantor has in real property, if any  Used to resolve questions of full title  Do not warrant good title Warranty deed  Grantor asserts that he or she has title, and that the property is free of the claims of others Bargain and sale deed  States that grantor is transferring the real property to the grantee  No particular warranties are given

12. Essentials of Business LawChapter 21-12 Other Transfers Of Real Property Eminent domain  Real property is taken from an owner by action of government for the benefit of the public  Compensation is made at the fair market value Adverse possession  Title to land is acquired as a result of a person’s use of land over a period of time  Proof of actual and exclusive continuous possession  Possession must have been open and known to the owner, and with hostility and adversely