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. BB30 Business Law 6.02Summer 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 6.02Summer 2013

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

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. BB30 Business Law 6.02Summer 2013

7. Riparian Rights 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 6.02Summer 2013

8. Real Property Rights Surface 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 6.02Summer 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 6.02Summer 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 6.02Summer 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 6.02Summer 2013

12. Duties Owed to Entrants on Land Owner should take reasonable steps to prevent harm to those entering their land. Trespassing – occurs when a person is on the land without a right to be there Adverse Possession – person whom the possessor of real property has permitted to be on the property –Delivery persons, social guests, etc. Invitee – either a public invitee or a business invitee BB30 Business Law 6.02Summer 2013

13. TRANSFER OF OWNERSHIP Title is to an automobile as a deed is to a home. 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. What are the different types? 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 6.02Summer 2013

14. TRANSFER OF OWNERSHIP Adverse Possession Adversely, open, notorious, and continuously possess another’s property North Carolina Adverse Possession Statute: http://www.ncleg.net/EnactedLegislation/Stat utes/PDF/ByArticle/Chapter_1/Article_4.pdf BB30 Business Law 6.02Summer 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 6.02Summer 2013

16. Foreclosure Repossession is to an automobile as foreclosure 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 BB30 Business Law 6.02Summer 2013

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

20. 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

21. 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

22. Terms Constructive eviction - the action taken by the landlord when rent is due rent control - the law that limits the amount of rent charged to a tenant Implied warranty of habitability - an automatic warranty in a lease that requires a landlord to keep the property fit for rental BB30 Business Law 6.02Summer 2013