1. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 1 Revised 5-7-09 Chapter 2 REAL PROPERTY AND THE LAW

2. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 2 Revised 5-7-09 Gold LAND (Page 11) OIL … defined as the earth’s surface extending downward to the center of the earth and upward to infinity.

3. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 3 Revised 5-7-09 Land +Improvements Real Estate (Page 11)

4. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 4 Revised 5-7-09 RIGHTS OF OWNERSHIP (Page 17) Possession Control Enjoyment Exclusion Disposition

5. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 5 Revised 5-7-09 LAND + IMPROVEMENTS + RIGHTS OF OWNERSHIP REAL PROPERTY (Page 12)

6. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 6 Revised 5-7-09 Real Property (Page 12) Personal property (Page 13) Chattels or Personality (Page13) Attachment (Annexation) (Page 14) Severance Deed (Page 14) Bill of Sale (Page 14) TERMS

7. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 7 Revised 5-7-09 VEGETATION (Page 14) Growing Vegetation Emblements – Cash Crops

8. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 8 Revised 5-7-09 FIXTURE (Page 15) Personal property converted to real property TRADE FIXTURE (Page 15) Fixture used in conducting a business which remains personal property

9. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 9 Revised 5-7-09 LEGAL TESTS OF A FIXTURE (Page 15) Agreement Annexation Adaptation Intention

10. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 10 Revised 5-7-09 ECONOMIC CHARACTERISTICS (Page 17) Scarcity Improvements Permanence of investment Location

11. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 11 Revised 5-7-09 PHYSICAL CHARACTERISTICS (Page 18) Immobility Indestructibility Uniqueness

12. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 12 Revised 5-7-09 (Page 18) SEVEN SOURCES OF LAW (Page 18) United States Constitution Laws passed by Congress Rules of the regulatory agencies State constitutions State statutes Local ordinances Common law Centuries Old Law Municipal laws Federal Laws State Laws

13. Copyright – David A. McGowan All rights reserved. Chapter 2 Slide 13 Revised 5-7-09 ILLINOIS COMMON LAW ACT Common Law Act (5 ILCS 50/) Se c. 0.01. Short title. This Act may be cited as the Common Law Act. ( Source: P.A. 86 ‑ 1324.) Sec. 1. That the common law of England, so far as the same is applicable and of a general nature, and all statutes or acts of the British parliament made in aid of, and to supply the defects of the common law, prior to the fourth year of James the First, excepting the second section of the sixth chapter of 43d Elizabeth, the eighth chapter of 13th Elizabeth, and ninth chapter of 37th Henry Eighth, and which are of a general nature and not local to that kingdom, shall be the rule of decision, and shall be considered as of full force until repealed by legislative authority. (5 ILCS 50/1) (from Ch. 1, par. 801) (Source: R.S. 1874, p. 269.)