GBL Exam 2 Review Guide Chapter 6 Property Property Our legally protected right and interest I anything of value that is subject to ownership net worth Real Property Personal Property personalty chattel tangible and intangible Bailments A temporary transfer in possession and control of personal property Possession transfers but title does not Transfers include Shipping goods FedEx man does not own package Lending out or renting objects lend roommate car valeting a car Giving clothing to the dry cleaner Bailor Owner of transferring possession Must care for the property prevent damage return property in agreed upon condition Fungible goods goods that are indistinguishable ex sugar doesn t need to be the same sugar just the same amount Bailee Person receiving the property May use the property per terms of the agreement respect limits use is limited to necessity if agreement does not address used Bailee s liability for damage If the bailment benefits only the bailor bailee is liable only for gross neglect ex leaving the garage open If the bailment benefits on the bailee bailee is liable even for slight negligence ex if you drive bailors car you cannot scratch it up If the bailment benefits the bailor and bailee bailee is liable only lack of reasonable care ex storing boats in public warehouse bailor benefits by getting boat out of water bailee benefits because they are getting paid Real Property Real estate Realty Surface Airspace above land to the stars Subsurface beneath land to core of earth Structures Fixtures personal property turned into real property by becoming attached to real property ex lumber made into fence Fixtures Definitions When real property is sold the buyer takes possession of the real property and the seller retains the personal property should have written agreement When real property is leased the landlord retains the real property and tenant takes the personal property EXCEPTION Trade fixtures a business that has installed fixtures during its lease treated like personal property Testamentary Gift Giving any type of property through will Bequeath Give personal property in you will Devise Give real property in you will Grantor Giver seller of land 1 GBL Exam 2 Review Guide Grantee Person who receives the land Reversion if given back to grantor Remandorman If given to new owner Possessory Interests In Land Freehold Estate can posses the land and exclude all others Free simple absolute most common owner has more rights in his land that any other type of owner can convey can mine can give can improve can control who owns that land after he dies Fee Simple Defeasible Qualification grantor attaches condition to his gift of land As long as grantee meets condition then they get to keep the land ex observatory at Griffith park largest municipal park must be free to the public because of grantors wishes Life Estate Cannot devise the land will own the land until life of tenant ends then give to grantee by grantor Concurrent o Joint Tenancy Freedom to sell one s interest without permission of others creditors can take debtor s interests owners cannot leave their interests to heirs owners must have equal interests o Tenants in Common Freedom to sell one s interest creditors can take debtor s interest owner can leave their interest to heirs owners may have unequal interests o Tenancy by the entirety Permission required to sell one s interest cannot sell w o co owner permission creditors of only one debtor cannot attach any interest owner cannot dispose of his interest by will co owners must be married divorce converts ownership to tenancy in common Sublease Transfer less that entire time remaining on lease Assignment Transferring the remainder of the time in lease Leasehold estates Tenancy for years any fixed period of time Periodic tenancy Automatically renewable for the original lease terms ex year lease renews every 6 months continues unless either party gives notice before end of next term Tenancy at Will Either party can say I am moving out tomorrow give notice to either party whenever no end date goes on till someone wants out Tenancy at sufferance Tenant stays on property after lease ends against wishers of land lord illegal Non Possessory Interests In Land Profits Right to enter another s land and take something from it Licenses Right to enter land but cannot remove anything granted automatically when business opens its doors Easements The right to use another persons land Dominant tenement land owned by user benefits from used of other land Servient tenement land being used burdened by someone else using the land Appurtenant benefits adjacent land In Gross adjacency not required ex gas companies own the right to put gas lines underneath homes Tyron Township transportation of fuel Seller of service makes money and houses benefit because they need the service 2 GBL Exam 2 Review Guide Positive Easements allows use of land benefits easement owners land and sometimes heightens the value of dominant tenement Easement By Necessity when the easement is absolutely necessary for reasonable use of the property Negative Easements prevents land owners from using their own land in a certain way ex Hollywood sign solar panels cannot build a building above a certain height Creation of Easements Express Grant Express Reservation Granted and reserved rights are stated in the deed that transfers property ownership Typically created when there is a sale of land Easement by Prescription Must have these 5 requirements over a 15 yr period in MI 1 Use the land of another 2 Use the land openly and notoriously not in dark 3 Use the land continuously on a regular basis same route 4 Use the land exclusively 5 Use the land in a adverse and hostile manner against the wisher and interests of the land owner Extinguishing the Easement When the land of dominant tenant is no longer land locked Loss Of Possession Adverse Possession Same requirements as prescriptive easements but must occupy another s land actual title transfers to person acquiring land Condemnation The government has constitutional power to take privately owned land must provide fair compensation for the owner and have public purpose for land road park public building David Lucas v South Carolina Lucas bought beach front land and built 2 houses government did not allow him to build them anymore and he tried to sue gov owed him 1 2 mil Nuisance Public interferes with health safety or comfort of people near by ex smoke stacks must be