1. Real and Personal Property
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Real and Personal Property
What is property?
How can you obtain it?
What can you do with it?
OBE 118
Fall 2004
Professor McKinsey

2. Part III of OBE 118 Property Business Organizations Agency Law
Employment Law
Antitrust

3. Property
A thing owned by someone
A to use, consume, and possess something and to prevent others from doing the same

4. Types of Property
Personal Property
Real Property

5. Possession versus Ownership
Possession is just one right among many that comes with ownership
Ownership of some property is established by title, often registered (vehicles, real property, IP)
Often we let people possess property and also give them a limited use of the property

6. Three Forms of Property Important to Business
Real Property
Personal Property
Intellectual Property

7. Property Advice
Nearly every new successful business venture centers around a form of property.
Knowing how to obtain, control, and harness the power of property is a fundamental business skill you need to master.
The rules of property continuously change and evolve, so stay current regarding the forms of property you are involved with.

8. Personal Property If it is not real property it is personal property
Ownership of personal property can be obtained by:
Sale (contract, you already learned this)
Gift (be wary of this one if a death follows the gift)
Creation
Possession of PP by someone who may not own it often creates all sorts of legal issues.
When someone has possession you must determine what rights they have with the property.
They might own it
But might merely have temporary possession

9. Bailments The temporary transfer of possession of personal property
It is a way to give to someone rights short of ownership to PP without having a contract.
Pages explain bailments.
There is also a handout on the website to help you with bailments.

10. Real Property (RP)
Land and things attached to it including air space above it, surface and sub-surface waters, gases and minerals.
The bundle of rights associated with land including ownership, possession, use, occupation, income production, mining, farming, and disposal.

11. Types of Ownership Individual Tenancy in Common vs. Joint Tenancy
TIC JT
Undivided, fractional interest
Undivided, equal interests
Equal right to possession
Equal right to possession
Assignable and inheritable
Assignment destroys JT
Interest is not inherited, it dissolves upon death
Community Property
Business form of ownership

12. Obtaining and Transferring RP Rights
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Obtaining and Transferring RP Rights
All RP is already owned, so the rights associated with it are transferred.
Ownership transfer is called a “conveyance” and uses a “deed” which must be “recorded” to preserve the RP right.
Limited rights are often transferred (easement, lease, etc) and not all require a deed.