1. L P 7: P R O P E RT Y
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 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. CLASSIFICATIONS OF PROPERT Y
L P 7: P R O P E RT Y
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Three Main Classifications of Property
1. Tangible and Intangible Property
2. Real and Personal Property
3. Public and Private Property

3. CLASSIFICATIONS OF PROPERT Y
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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. CLASSIFICATIONS OF PROPERT Y
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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. CLASSIFICATIONS OF PROPERT Y
L P 7: P R O P E RT Y
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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. REAL PROPERT Y RIGHTS
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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. REAL PROPERTY RIGHTS
L P 7: P R O P E RT Y
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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. REAL PROPERT Y RIGHTS
L P 7: P R O P E RT Y
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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. REAL PROPERT Y RIGHTS
D. Surface
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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. ACQUIRING TITLE
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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. ACQUIRING TITLE
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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. ACQUIRING TITLE
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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. ACQUIRING TITLE
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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. 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. 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. OTHER INTERESTS
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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. RESTRICTIONS
A.
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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. PERSONAL PROPERT Y
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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.