Chapter 19.1 The Law of Real and Personal Property

Real and personal property Real property Land and interests in land Personal property Property other than land - chattels Tangible property Transferable by delivery (Choses in possession) Motor vehicles, furniture textbooks, etc. Intangible property Transferable by assignment (Choses in action) Accounts receivable. insurance policies, copyright, patents, etc.

The ownership of property If we say person “owns” a piece of property we mean that they have the right to:  use and enjoy it;  sell it;  dispose of it by will or gift;  retain possession of it for any period;  mortgage it and let it;  destroy it.

The transfer of ownership or title Transfer of title in property may be by:  sale,  gift,  will, or  operation of law.

Nemo dat quod non habet No one can give what they do not have. You cannot transfer a better title than you have yourself. There are number of exceptions under the Land Transfer Act 1952:  sale by a mercantile agent  sale of a vehicle by a motor vehicle dealer  sale by a seller in possession under s27(1) Sale of Goods Act 1908.

Personal Property: the protection of property and possessory rights

The Personal Property Securities Act 1999 The scope of the Act:  The enforceability of an interest in personal property created or provided for by a transaction that secures payment for money or performance of an obligation. This interest is called a "security interest".  The determination of priorities between security interests in the same personal property.  The determination of priorities between a security interest and another type of interest  The determination of priorities between a security interest and another type of interest ( for example, the interest of a buyer) in the same personal property.

A system for regulating securities over personal property must provide: A system for regulating securities over personal property must provide: for an effective security agreement between the parties to the agreement,for an effective security agreement between the parties to the agreement, and ensure that the security agreement is enforceable against the parties to it and third parties (i.e.,persons who are not parties to the security agreement).and ensure that the security agreement is enforceable against the parties to it and third parties (i.e.,persons who are not parties to the security agreement).

The Act creates two important concepts: attachment and perfection Attachment of a security interest (when a security interest comes into existence) occurs when: the secured party gives value for the loan,the secured party gives value for the loan, the debtor has rights in the personal property that is used as security for the loan, the debtor has rights in the personal property that is used as security for the loan, the security agreement is enforceable against third parties other than purchasers.the security agreement is enforceable against third parties other than purchasers. The perfection of security interests requires attachment together with one of the methods of achieving perfection, such as registration of a financing statement; orregistration of a financing statement; or the secured party taking possession of the personal property that is subject to a security interest.the secured party taking possession of the personal property that is subject to a security interest. Perfection is relevant to giving a secured party priority over third parties who have purchased the property.