The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.Chapter Eight:Real and Personal PropertyI. Real Property- Refers to land, things under the land, such as oil and minerals; and things solidly attached to the land, such as buildings and trees.A. English Origins- B. Deeds and Titles- A deed is the primary way to transfer ownership interest (0r the title) in property1. Quitclaim Deed-Is a deed of conveyance that passes whateverinterest the grantor had in the property.2. Warranty Deed- Is a deed that promises that a good, clear title to the property being conveyed by the grantor. The grantor assures the new owner that the property is free of any leins or encumbrances.3. Special Warranty Deed- Is a deed that warrants that the buyer has received title and that the property was not encumbered during the ownership by the grantor. It does notwarrant that things may have happened before the grantor obtained title. C. Fee Simple Absolute- Means the right to exclusive possession of a particular piece of land for an indefinite time, as well as the right to dispose of the land as the owner pleases.1. Tenancies- Refers to possession or use of lands by any kind ofright or title, whether in fee simple or for a limed purpose or limited time.a. Tenancy In Common- A form of ownership in which each tenant (owner) has an undivided interest in the property. Each party owns and interest in the property. If one party dies, their interest is passed to their heirs.b. Joint Tenancy- This is a purchase of property by two or more persons who have the same interest in the undividedpossession of property. If one of the joint tenants dies, the other tenant acquires full ownership of the property. It does not pass to the heirs.c. Life Estate- In this instance the property owner grants to the tenant the rights to property for his or her life. On thedeath of the tenant the property reverts back to the owner.The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.2. Trust- A form of property ownership that separates the legal and beneficial ownership of property. One party (the trustees) owns the trust, but another party (the beneficiary) reaps the benefit of the trust.a. Trustee- Holds the legal title to property and can make all decisions with respect to it.b. Beneficiary- Holds all equitable title to the property.c. Business Trusts-3. Servitudes- Are limitations or requirements about the use of property.a. Easements- Is a right to enter land owned by another and make certain use of it. Ownership of an easement does not make one an owner of the land, rather the easement creates a burden on the land. It’s the right of one party touse the property of another such as for a driveway to a landlock piece of property. b. Adverse Possession- Comes into play when someone who has no right to occupy or use an estate does so without permission. If the following criteria are met this individual may obtain good title to the property. (OCEAN)i. Open - The use of possession must be visible so that theowner is on notice of the use.ii. Continuous- The use or possession must go on without major interruption for as much time as required by law to obtain good title. Under the common law, the general statute of limitations on a adverse possession claim is 20 years.iii. Exclusive- The use or possession is not shared with others who also have no right to use the property.iv. Actual (or Adverse)- The adverse user in fact uses or possesses the property in question without the permission of the owner.v. Notorious- c. Covenants- or covenants running with the land, are a means in which owners of estates in land can make agreements that bind their successors. If the property is sold or transferred the obligation in the covenant goes with it. It is still enforceable. 4. Landlord and Tenants-The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.a. Leases- An agreement that creates a leasehold out of an estate and contains conditions on the use of the property such as payment of rent, obligations, etc. A lease must generally:i. Identify the Parties-ii. Describe the Premises being leased-iii. State how long the lease is to last-iv. State how much rent is to be paid-b. Right of a Tenanti. Right of Possession- The landlord must be able to give tenant possession of the premises when the lease begins.ii. Right or Warranty of Habitability- The landlord mustprovide property that is reasonably suited for residential use.iii. Right of Quiet Enjoyment- Is the implied promise by the landlord in every lease that he or she will not breach the contract.c. Duties of a Tenant- A tenant cannot commit waste of the property, i.e., an intentional destruction or removal of valuable property from the premises. 5. Commercial Leases- Generally speaking these leases are significantly longer and more complex that residential leases.II. Public Control of Real Property-A. Eminent Domain- The power of the government to take private property for public use.B. Public Powers- The regulatory authority of government to regulate behaviors to protect or promote the general welfare. This is a very broad power to control the private use of property.An example of such regulation is through zoning ordinances thatprevent certain business or activity within certain areas. III. Torts Against Property-A. Trespass to Land- An unauthorized intrusion by a person or a thing on land belonging to another. B. Nuisance-The Legal Environment of BusinessFINA 2244 Christina Sheppard Futrell, Esq.1. Private Nuisance- An activity that substantially and unreasonably interfere with the use and enjoyment of someone’s land.2. Public Nuisance- An unreasonable interference with a right held in common by the general public.C. Trespass to Personal Property- The intentional and wrongful interference with possession of personal property of another without consent.D. Conversion- An intentional and unlawful control or appropriation of the personal property of another. Conversion requires that the control or appropriation so seriously interfereswith the owner’s right of control that it justifies payment for the property.E. Misappropriation- applies to the theft of trade secrets, intellectual property, etc.IV. Torts Against Property Owners- A. Premises Liability- The owner of property has a duty to keep thepremises reasonably safe under the