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What is property?
legal right to exclude others from resources that are originally possessed or acquired without force, theft, or fraud
property is absolute but not ___
infinite
Bundle of Rights
right to exclude
right to possess
right to use
right to sell
right to control
right to gain income
property is the foundation of the ____
free (private) market
Private Property System
state recognizes and enforces an individual’s right to acquire, possess, use, and transfer scarce resources
If the goal is to increase the amount of limited resources, which framework is better?
private property system
Real Property
land and interest in land (includes buildings)
Personal Property
all moveable resources
Tangible Property
things one can touch
Intangible Property
nonphysical things such as intellectual property
Defining land
land ownership consists of more than the surface of the property
Air Rights
owner of real property possesses the air above the land to the extent that you can use and occupy that space
Subsurface Rights
landowner ownes the liquids, gases, rocks, and minerals beneath the land
Rule of Capture
if the materials originate on another property and naturally flow to your property, you are allowed to take it out and capture it
Fixture
moveable objects that have been attached to the real property, and becomes one with it
Fee Simple Estate
maximum estate allowed under law
Fee Simple Absolute
gives property with no condition
Fee Simple Defeasible
giving property but attaching conditions on it
Life Estate
grants an ownership in land for the lifetime of a specified person
Reversion Interest
if the land reverts to the original grantor upon the death of the grantee
Remainder Interest
if the property goes to someone other than the original grantor upon the grantee’s death
Future Interests
reversion and remainder property interests
Leasehold Estate
property rights granted to tenants by a landlord
Concurrent Ownership
more than one person owns the property
Joint Tenancy
must be equal, rights of survivorship, can be partitioned
Tenancy in Common
can have different shares, no rights of survivorship, can be partitioned
Easements
right of someone other than the owner to cross over land or use the land
Natural Easement
when you buy a land that is landlocked
Negative Easement
when you are asking the adjacent land owner to not to anything on their property that would negatively impact your property
Easement by Prescription
you have to use their land openly, wrongfully, and continuously
Bailments
goods placed into another’s possession to be returned in the future
Bailor
owner of the personal property
Bailee
temporary possessor of the object
Key Question for Bailments
Is the possession intentional?
for the sole benefit of the bailor
slight duty of care
mutually beneficial
reasonable duty of care
for the sole benefit of the bailee
high duty of care
Contract Rules
control the way owners make agreements to exchange resources in the property based legal system
Property Acquisition
exchange, possession, adverse possession
Rule of first possession
first person to reduce previously unowned things to possession, becomes their owner
Abandoned Property
first person to reduce abandoned thing to possession owns it
Lost items
finder become owner by reducing item to possession and following a statutory procedure
Mislaid things
must be given to the owner of the premises where the item was mislaid
Adverse Possession
provides ownership of land under state statute when the possession is:
open and notorious
actual and exclusive
continuous
wrongful
for a prescribed period of time
Difference between easement and adverse possession
easement by prescription: right to USE property for a specific purpose
adverse possession: giving OWNERSHIP to this new person, exclusive element
Confusion
occurs when fungible (identical) goods are mixed together
If confusion occurs by honest mistake:
owners hold a proportional share of the confused goods
What if the confusion was intentionally wrongful?
give 100% of the proceeds to the innocent party
Ask during Confusion: Was there a record kept
a. if yes, split according to what the written records state
b. if not, split equally between all notes
Accession
Something that is added
Law of accession
when people apply efforts to any raw materials and change its nature into finished products, they own the finished products
Gift does not take place until the donor:
intends to make the gift, delivers the gift by physical transfer (keys count as instructed delivery)
Testamentary gift
gift through will, not complete until donor’s death, have to prove it’s a valid will
Title
document registered with the state for certain types of personal property that represents ownership
Deed
document of title that transfers ownership of land
Warranty Deed
promises the grantee that the grantor has good ownership and the full power to convey it
Special/Limited Warranty Deed
limits the liability of the grantor/seller, does not hold the grantor liable for what happened prior to their ownership
Quitclaim Deed
makes no guarantees other than that the grantor surrenders all claim against the land
What happens when a deed is NOT recorded?
How do I know if it was conveyed to you? Attorney will still thin it belongs to the previous owner
Security Deed
pledge of real property to secure repayment of a loan, used in GA
Deed of Trust
similar except that the deed is in favor of a trustee, not used it GA
Land Sales Contract
owner sells land to buyer but retains title until purchase price is paid
Foreclosure
process by which a creditor exercises its secured property interest when the obligation owed to them is not satisfied, usually in the form of a public sale
Deficieny
balance owed by the debtor to the creditor
Right of Redemption
allows mortgager to get back land upon payment of the full amount of the debt, including all interest and costs
Note 
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