| A | B |
|---|
| Property | Consists of owned objects plus the rights of ownership |
| Property rights | Include the rights of possession, enjoyment, control, and disposition, and are commonly called the bundle of legal rights |
| Bundle of Legal Rights | The common term for the property rights the owner has in the object owned |
| Chattel | The term for personal property |
| Chattel Classifications | Chattel personal and chattel real |
| Personal property | An item that moves with it's owner (is mobile) |
| Chattels personal | Items of personal property such as cars, boats, furniture, clothes, stocks, money and tools |
| Chattels real | Those items of personal property which extend to their owner an interest in real property (i.e. mortgages, leases, contracts to purchase, and options) or that are attached to real property (i.e. trade fixtures) |
| Real Estate | Objects which are immovable and identified with a specific place |
| Real Estate includes: | 1. Land 2. Products of Nature 3. Man-made Improvements 4. The Legal Right of Ownership |
| Real Property | Refers to the right to own land and the attachments on it |
| Parcel of Land | An area which starts at the center of the earth (subsurface), passes through and includes the earth's surface, and extends into space (air rights) and upward to infinity |
| Tenements | Those things which are permanently attached to the land (earth's surface). Are immovable by law. Are either a natural or artificial attachment. |
| Natural Attachments | Permanent attachments (tenements) that are a product of nature (i.e. trees) |
| Artificial Attachments | Permanent attachments (tenements) that are man-made objects (i.e. a building) |
| Perennial Plants | Plants grown naturally on a parcel of land that require no actual cultivation, like shade trees. Considered REAL property that are automatically transferred with the land. But, they change from real to personal property once severed from the land |
| Fructus Naturales | Perennial Plants |
| Emblements | Crops that are planted and harvested each year (i.e. corn, wheat, or soy beans). They are PERSONAL property |
| Fructus Industriales | Emblements |
| Improvement/ Artificial Attachments | Anything that is the product of human planning and labor which is affixed to the land with the intent of being permanent. REAL property. Considered part of the realty (not necessary to describe in a deed- only the surface of the land is described in the deed) |
| Examples of Improvements | 1. Buildings 2. Fences 3. Pipelines 4. Driveways 5. Swimming Pools 6. Mobile Homes (when permanently attached) |
| Appurtenances | Improvements, natural attachments, and all rights of ownership are part of the land and go with the land to successive owners. They are called: |
| Bill of Sale | Ownership of personal property items (like furniture and appliances) must be transferred to the buyer with this: |
| Deed | The document used to transfer ownership to real property |
| Fixture | When an item of personal property is attached to or used with the land or its improvements in such a manner that is is legally considered a part of the real estate. When this change occurs, the personal property becomes automatically conveyed to the buyer along with the land. |
| Name the tests used to determine whether a fixture is real or personal property in the absence of an agreement | 1. Attachment 2. Adaptation 3. Interest |
| Attachment | The court decides if the removal of the possible fixture will materially damage the real estate or the item itself. Like whether the attached materials are readily removable (ex. window air conditioners and light bulbs) or are more or less permanent (ex. ettaching lumber or brick with nails, cement, or screws) |
| Problem with the Attachment Test | The permanence of attachment is a matter of degree |
| Adaptation | When the court looks to the design and suitable use of the item relative to the building to which it is attached. Ex. if the item was removed, would it be equally adaptable to another building? |
| Interest | When the court considers the legal interest of the person, such as a tenant, who attached the personal property in question. If no legal interest (a trespasser), the landowner is generally entitled to the fixture |
| Severance (Removal) | Removing an improvement or attachment. Goes from being real property (a fixture) to personal property |
| Trade Fixture | An item of personal property which a tenant attaches to the building he/she has leased and is used to carry on the trade or business |
| Removal of Trade Fixtures | A tenant generally has the right to remove trade fixtures at any time before the lease expires, provided they can be removed without material or permanent damage to the land or building |
| Failure to Remove Trade Fixtures | Failure of a tenant to remove it before the lease expired causes the tenant to forfeit rights to the improvement. It then becomes a regular fixture and belongs to the owner of the leased property by accession |
| Replacement Fixture | If a tenant replaces a landlord's fixture with a new fixture and does so without permission to remove the old fixture, than this fixture is known as this and becomes the landlord's property by accession |
