ACTG 6100Legal Issues

Week 8REAL PROPERTY

Learning Objectives for this Chapter

• Define Property• Identify the categories of property• Explain the difference between the forms of concurrent ownership• Identify the elements of Adverse Possession• Define Eminent Domain and identify the two restrictions placed on its

use in the U.S. Constitution• Identify the 3 areas of law that impact landlord-tenant relationships• Identify the duties and potential liabilities of landlords and of tenants

Define Property•Property defines the relationship between people and

things.•Property is a bundle of rights:

• It is the basis of an expectation of deriving certain advantages from a thing.•Before laws were made there was no property. Take

away laws and property ceases.

Use Possess Transfer Exclude

Identify the Categories of Property

• Real – land and everything affixed to it. Fixed, immovable and permanent.• Personal – Everything that is not real property• Tangible• Intangible

• Intellectual Property

• Fixtures – items of personal property that become part of real property.• XYZ, Inc. owns a 100 acre farm. Smith owns 100% of the stock.

Concurrent Ownership

Tenancy in Common

Undivided interest

Freely transferable

Presumed

Joint Tenancy with Right of Survivorship

Must be expressed

Passes by operation of law at the death of one

But, can be easily severed

Concurrent Ownership

Tenancy by the Entirety

Married Couples OnlyPresumed when marriedPasses to survivor by operation of lawNot easily severed Creditors of one cannot attach***TBETrust

Community PropertyMarried Couples Only Property owned jointly unless they have expressly agreed to hold it separately.Upon death of the first, ½ passes to survivor, ½ though the decedent’s estate

Identify the Elements of Adverse Possession• Physical Possession - actual• Open and Notorious• Adverse – claim of right - Hostile• Continuous• Exclusive

Why would the legal system sanction the transfer of ownership by adverse possession?

Eminent Domain

•The power of the government to take private property•5th Amendment to the U.S. Constitution•For public use•And upon just compensation

Landlord-Tenant Relationships

• Landlord’s duties:• Quiet Enjoyment v.

Constructive Eviction• To Maintain the Premises• To Return the Security Deposit

• Tenant’s duties:• Pay Rent• Use Premises Properly

Property Law Contract Law Tort Law

• Duty to Mitigate Damages

• Liability for Injuries:• Duty• Breach• Causation – Actual and Proximate• Injury