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

2. Real vs. Personal Property Real 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 Personal 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 6.02Summer 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.

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.

5. Who owns the tree? Property owners can force a neighbor to cut tree branches that hang over their property.

6. 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.

7. Riparian Rights Riparian is the right to use the water that you live on. Ownership includes the water under and touching your property.

8. Can power companies run power lines through your neighborhood? Yes, easements (limited use of another’s land) 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.

9. 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. (Homeowner’s Associations) Covenants – promise involving land use between buyer and seller of land (must be in writing).

10. 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.

11. TRANSFER OF OWNERSHIP Deed – legal document use to transfer ownership. 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

12. 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. BB30 Business Law 6.02Summer 2013

13. Foreclosure 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 6.02Summer 2013

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

15. 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 6.02Summer 2013

16. 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 6.02Summer 2013

17. Rights and Duties of Tenant Rights: –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 6.02Summer 2013

18. Rights and Duties of Landlord Rights: –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 6.02Summer 2013