La3100 week 8 lecture

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La3100 week 8 lecture

  1. 1. L P 7: P R O P E RT Y N AU L A 310 0  The ownership of property is a fundamental right in the United States protected by the U.S. Constitution.  Property can generally be defined as any right that can be owned and conveyed.  Property does not consist of one right, but several rights.  Such rights may be held by one owner or shared among several owners.  Property can be classified as tangible and intangible; real and personal; and public and private.  Laws and private covenants may restrict a landowner's use of property.
  2. 2. CLASSIFICATIONS OF PROPERT Y L P 7: P R O P E RT Y N AU L A 310 0 Three Main Classifications of Property 1. Tangible and Intangible Property 2. Real and Personal Property 3. Public and Private Property
  3. 3. CLASSIFICATIONS OF PROPERT Y L P 7: P R O P E RT Y N AU L A 310 0 1. Tangible and Intangible Property  Tangible property consists of items that can be seen and touched. SUCH AS? When people think of property, they often think of tangible property, such as furniture and vehicles. However, property can also be intangible.  Intangible property is not physical, but nonetheless can be owned and transferred. CAN ANYONE GIVE ME AN EXAMPLE? Copyrights, trademarks, and investments are examples of intangible property.
  4. 4. CLASSIFICATIONS OF PROPERT Y L P 7: P R O P E RT Y N AU L A 310 0 2. Real and Personal Property  Real property (often called real estate) is defined by state law and usually includes land and fixtures. A fixture is anything that is permanently attached to the land, such as trees and buildings. Fixtures within buildings are also considered real property.  Personal property is generally defined as all property that is not real property. Examples of fixtures? Personal Property?
  5. 5. CLASSIFICATIONS OF PROPERT Y L P 7: P R O P E RT Y N AU L A 310 0 3. Public and Private Property  Public property is property owned by the government, including Federal, state, and local governments. Public buildings, public parks, and government office furniture are examples of public property.  Private property is property owned by private persons. WHAT ABOUT PROPERTY HELD BY CORPORATIONS? PUBLIC OR PRIVATE?
  6. 6. REAL PROPERT Y RIGHTS L P 7: P R O P E RT Y N AU L A 310 0 Fee Simple Absolute  a. Fee simple absolute, sometimes called fee simple or fee, is the greatest "bundle of rights" that may be acquired in a parcel of real property. A person who holds property in fee can use, sell, lease, give away, and convey the property upon the fee holder's death. Fee simple absolute is what most people would consider owning real property.  b. Life Estate A life estate is a lesser interest than fee simple absolute. In a life estate, a person (called the life tenant) can possess and use property during his/her lifetime, or the lifetime of designated person. Upon the death of the life tenant, or the designated person, the property passes to another designated person, called the remainderman.
  7. 7. REAL PROPERTY RIGHTS L P 7: P R O P E RT Y N AU L A 310 0 c. Shared Estates in Real Property States allow two or more per sons to share an owner ship interest in real proper ty under various forms of joint owner ship.  ( 1) Tenancy in Common Two or more per sons may share title to real proper ty as tenants in common . Each tenant holds an undivided interest in the proper ty. That is, each tenant has a right to use the entire parcel of proper ty.  Tenants in common may hold dif ferent owner ship interests in the proper ty.  For example, one per son may own a two -thirds interest in the proper ty, another per son may own a one -sixth interest, and two other per sons each own a one -twelf th interest. Each tenant may convey the tenant's interest during his/her lifetime or upon the tenant's death. When more than one per son receive title to real proper ty, it is presumed that they receive title as tenants in common, unless specifically stated other wise
  8. 8. REAL PROPERT Y RIGHTS L P 7: P R O P E RT Y N AU L A 310 0 A. Joint Tenancy When permitted by state law, two or more persons may hold title to real property as joint tenants. Although similar to a tenancy in common, joint tenancy includes the right of survivorship. When a joint tenant dies, the tenant's ownership interest passes to the surviving joint tenants. Like tenants in common, each joint tenant owns an undivided interest in the property, with the right to use the entire parcel of property. However, unlike tenants in common, joint tenants must each own an equal interest in the property. B. Tenancy by the Entirety – what’s yours in mine and what’s mine is mine. Several states recognize a tenancy by the entirety, which is essentially a joint tenancy between husband and wife. C. Community Property Other states have enacted community property laws, which establish that all property acquired by personal efforts of spouses during a marriage is equally owned by husband and wife. Generally, separate gifts and inheritance are not considered community property.
  9. 9. REAL PROPERT Y RIGHTS D. Surface L P 7: P R O P E RT Y N AU L A 310 0 and Mineral Estates In many states, it is possible to sever (separate) the mineral estate from the surface estate. As a result, it is possible for one person to own the surface of the property and another person to own the minerals below the surface. There are also air rights.
  10. 10. ACQUIRING TITLE L P 7: P R O P E RT Y N AU L A 310 0 Persons may acquire title to real property through various methods, including: a. Deeds and conveyances b. Inheritance c. Adverse Possession d. Foreclosure e. Tax Deed f. Eminent Domain
  11. 11. ACQUIRING TITLE L P 7: P R O P E RT Y N AU L A 310 0 Deeds and Conveyances A person may acquire title to real property by a deed, a written document signed by the grantor and delivered to the grantee. -If I give you a deed to my house, who is the grantor? Who is the grantee?
  12. 12. ACQUIRING TITLE L P 7: P R O P E RT Y N AU L A 310 0 A. Warranty Deed 1. Warrants marketable title to the property 2. Warrants quiet and peaceable possession of the property 3. Warrants that no encumbrances (e.g., liens) affect the property, except as disclosed B. Quitclaim (Dollar) deed. -- "as is” no warranties
  13. 13. ACQUIRING TITLE L P 7: P R O P E RT Y N AU L A 310 0 C. INHERITANCE: A person may acquire an interest in real property by inheritance. A beneficiary will receive an executor's deed or personal representative's deed conveying title from the decedent's estate. A person who dies without a will dies intestate. If the person owned real property died without a will, the property will be distributed to the decedent's heirs according to the state's intestate statutes.
  14. 14. ACQUIRING TITLE TO REAL PROPERTY D. ADVERSE POSSESSION -Using and maintaining land for a specific time period is usually 10, 15 or 20 years or more. --Many states also require that the use be "open and notorious," --It doesn’t happen automatically. Bring court action to “quiet the title”. E. TAX DEED --Nonpayment of taxes-someone else can pay them and get title. --several years (6 years in some states) before a tax deed will be issued. --quiet title action F. FORECLOSURE Default on a mortgage, for example
  15. 15. ACQUIRING TITLE TO REAL PROPERTY G. EMINENT DOMAIN  Obtaining title for public purpose by the government.  First government will negotiate a purchase.  If an agreement cannot be reached, the government may "condemn" the property and acquire title by eminent domain.  Through a condemnation proceeding, the landowner is paid the reasonable value of the property, as determined by a court.  n such case, private property is converted to public property through due process of law.
  16. 16. OTHER INTERESTS L P 7: P R O P E RT Y N AU L A 310 0 A. EASEMENT  right-of-way  Private roads, electric, telephone, and other utilities often rely on easements to cross real property without owning it. B. LEASE Longer than one year must be written to be enforceable statute of frauds--.
  17. 17. RESTRICTIONS A. L P 7: P R O P E RT Y N AU L A 310 0 GOVERNMENT RESTRICTIONS  Unlawful purposes and zoning  Example: Liquor sales near a school, or the operation of a business in a residential neighborhood.  Federal government restricts the operation of certain activities that may have an adverse impact on the environment or may be regulated because the activity involves interstate commerce.  Federal government requirement to obtain permissions before excavating coal or starting a toxic waste dump on the owner's property. B. PRIVATE RESTRICTIONS  Covenants. When purchasing real property, inquiry should be made to determine the existence of any covenants that may affect the intended use for the property. Covenants may be enforced if they do not violate any law or infringe any Constitutional protections.
  18. 18. PERSONAL PROPERT Y L P 7: P R O P E RT Y N AU L A 310 0 A. Ownership Interests in Personal Property  tangible or intangible- examples?  Similar to real property, title to personal property may be acquired by purchase, gift, or inheritance. B. Transfer of Personal Property  Certain items have special requirement for transferring title A simple receipt may serve as proof of purchase.  Intangible personal property, such as shares of corporate stock and interests in a mutual fund, requires written proof.

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