Property Law &

Property Law

A collection of rules that confer rights of ownership, possession, and transferability over things.

Property Ownership (Rights)

Generally includes the right to possess and use property, prevent others from possessing it, and transfer property rights to others.

Public Property

Things owned by the Government for the benefit of Society.

Private Property

Things owned by individuals, Businesses, or other Organizations.

Real Property

Immovable things, including land, buildings, and fixtures. also called Realty or Real Estate

Personal Property

Movable, tangible things and intangible property.

Examples of Real Property

Land, buildings, garages, fences, fixtures (e.g., sinks, lighting fixtures, built-in shelving).

Chattels

Movable tangible property.

Examples of Chattels

Automobiles, furniture, computers, inventory, office supplies, machinery.

Choses in action

Intangible personal property, such as negotiable instruments, insurance claims, and shares in a Corporation.

Examples of Choses in action

Shares in corporations, goodwill, negotiable instruments (e.g., cheques, promissory notes).

Tangible Property

Physical things.

Intangible Property

Things whose value does not arise from their physical attributes.

Goodwill

A Business' good reputation with its customers and others, representing a right or claim to something of value.

Non-fungible Tokens (NFTs)

A unique asset that is stored on a digital database known as a Block Chain.

Intellectual Property

Things created by the mind or intellect, such as logos and inventions.

Examples of Intellectual Property

Copyrights, trademarks, patents, industrial designs, trade secrets, domain names.

Bailment

The legal relationship that arises when personal property is borrowed, rented, stored, or found by a person other than its owner.

Bailor

The party in a Bailment that owns the personal property.

Bailee

A party in a Bailment that is in temporary possession of the Bailor’s personal property.

Bailee's Duty of Care (in Business)

To take care of the goods in the same manner as a reasonably prudent owner would be expected to take care of their own goods.

Lucrative Bailment

A bailment where both the Bailee and the Bailor receive a benefit from the arrangement.

Examples of Lucrative Bailment

Bailment for repair (car service), valet parking, or consignment of stock to a retailer.

Special Bailment

A Bailment relationship that is created by statute rather than under Common Law.

Examples of Special Bailment

Businesses transporting goods (e.g., railway companies) or Innkeepers (hotels) who have special obligations by statute.

Constructive Bailment

Where the Bailor loses personal property, which comes into the possession of the Bailee accidentally.

Examples of Constructive Bailment

A customer inadvertently leaving keys at a store; a necklace falling off and being found by restaurant staff.

Gratuitous Bailment

Possession of property where the benefit flows to only one party (either the Bailor or the Bailee)

Examples of Gratuitous Bailment

Leaving valuables with a friend for safekeeping (benefits Bailor); lending a necklace to a friend (benefits Bailee).

Fixtures

Items such as shelving, sinks, or equipment that are attached to buildings.

Fee simple

Ownership rights in land where the owner can do what they want, including transfer, sell, and dispose of it.

Life Estate

Interest in land for the duration of a person’s life, after which ownership transfers automatically to another.

Easement

Allows one person or entity the right to use the land of another for a specific purpose.

Leasehold Interest

A temporary right to occupy Real Property.

Lessor

A person who leases property to another (a landlord).

Lessee

A person who leases property from another (a tenant).

Agreement of Purchase and Sale

A legal contract that obligates the buyer to buy and the seller to sell.

Conditions Precedent

Clauses that specify something must happen before a party is required to fulfill its contractual obligations.

Examples of Conditions Precedent

Conditional on financing, zoning approval, inspection, or an environmental audit.

Warranty (in Contract Law)

A clause creating an obligation; if breached, the non-breaching party can sue for damages but the contract is not terminated.

Examples of Warranties (in Real Estate)

Warranting no toxic wastes on the property; warranting no asbestos in the buildings.

Closing Date

The time specified in the agreement when real property is legally transferred.

Mortgage

A loan secured by real property, giving the lender the right to sell the property if the borrower fails to repay the loan.

Examples of Common Lease Provisions

Term of the lease, rent, repairs and maintenance, use of premises, sublets, assignment, and fixtures.

Examples of Property-Related Insurance

Property loss, liability for property loss, occupiers’ liability, business interruption, cybersecurity, and self-insurance.