Bài giảng Business Law (13th edition) - Chapter 24: Real Property

PropertyPersonal Property and BailmentsReal PropertyLandlord and TenantEstates and TrustsInsurance Law5McGraw-Hill/Irwin Business Law, 13/e© 2007 The McGraw-Hill Companies, Inc. All rights reserved.Real Property PAETRHC24“Study how a society uses its land, and you can come to pretty reliable conclusions as to what its future will be.” E.F. Schumacher, Small is Beautiful (1973)Learning ObjectivesScope of real propertyRights and interests in real propertyAcquisition of real property and transfer by saleObligations related to property condition Land use24 - *Real property land and things attached to or embedded in land: buildings, trees, crops, surface and ground water, minerals, airspace above the landOverview24 - *A fixture is an item of personal property that has become so attached to real property that it becomes part of real propertyReal property owner now owns fixturesRelevant factors to determine transformation: attachment, adaptation, intentAn exception is trade fixturesRemain tenant’s personal propertyFixtures24 - *Estate refers to a person’s ownership interest in real property, freehold or nonfreeholdFreehold estates are ownership interests of uncertain durationNonfreehold (or leasehold) estates are those held by persons who lease real propertyCo-ownership of real property exists when two or more persons share the same ownership interest in propertyEstates in Land & Co-Ownership24 - *An easement is a right to make use of another person’s property (affirmative) or prevent another from using property (negative)Restrictive covenants also restrict use of real propertyA profit is a right to enter another’s land and remove some product or part of landA license is a temporary right to enter another’s land for a specific purposeEasement, Profit, & License24 - *Title to real property may be acquired by purchase, gift, will or inheritance, tax sale, and adverse possessionA valid conveyance of real property occurs through execution and delivery of a deedQuitclaim, warranty, grant deedsAdverse possession occurs when person wrongfully occupies land and acts in open and hostile manner as if he were the ownerAcquiring Real Property24 - *In a title opinion, an attorney examines the abstract of title and gives an opinion about whether the grantor has marketable titleUnder the Torrens system of registration (in a few states), one who owns land in fee simple obtains a certificate of titlePurchasing a policy of title insurance is the preferred and most common means of protecting title to real propertyAssuring Title24 - *Implied warranty of habitability guarantees a residence is free of hidden defects making it unsafe or unsuited to human habitationSimilar to implied warranties for sale of goodsPremises liability refers to negligence cases in which property owners or possessors (e.g., businesses leasing commercial real estate) are held liable to persons injured while on the propertyDefective & Dangerous Premises 24 - *Nuisance occurs when one owner’s use of property unreasonably interferes with another person’s property useZoning ordinances organize a municipality into districts according to the allowed uses for property in those districtsLand Use Control24 - *The Fifth Amendment guarantees that private property shall not be “taken for public use” without “just compensation” Implies government’s power of eminent domain to effect the takingKey is “just compensation”Eminent domain is controversial, perhaps more so given the Kelo decisionLand Use Control24 - *Test Your KnowledgeTrue=A, False = BFor his two dogs, Brett built a dog kennel and run of wood posts and wire fencing behind his house. When Brett sells his house, the kennel is a fixture that has become real property.Carol opened a restaurant in an empty leased space in the food court of Shopping Center. Carol equipped the space with ovens, shelving, and refrigerators. When Carol’s lease is over, Carol must leave the ovens and refrigerators.24 - *Test Your KnowledgeTrue=A, False = BSheila has a drainage ditch behind her house that is described in the written deed. Sheila is not permitted to alter the ditch in any way. The drainage ditch is an easement. An implied warranty of habitability promises that a house has no hidden defects rendering it unsafe or unsuitable for human habitationA warranty deed contains promises about the quality of the house construction24 - *Test Your KnowledgeMultiple ChoiceChris slipped on a tomato that had fallen on the grocery store’s produce section. If Chris sues the store, what type of law will apply? (a) Tort law(b) Premises liability law (c) Breach of contract (d) Both A and B(e) All of the above24 - *Test Your KnowledgeMultiple ChoiceNewton owned 500 acres and leased 300 to Kevin for farming beans. When Kevin is working the 300 acres he leased, he is: (a) an invitee with the right to take the bean crop as a license(b) a lessor with the right to work the bean crop for the benefit of Newton(c) a licensee with the right to take the bean crop as a profit(e) none of the above24 - *Thought QuestionsIs the cliché, “good fences make good neighbors,” a true statement? What is your opinion of the Kelo decision?24 - *