Personal Property & Bailment Chapt 49
Business Law
Personal Property & Bailments
Chapter 49
2/4/12
3:25
Personal Property and Bailments
Personal Property versus Real Property:
• Real Property Realty, real estate—land and everything permanently attached to it
• Personl property chattels, is capable of being moved
• Distinction important both properties are subject to different taxes- tax rate is based on market value of real prop and businesses usually pay taxes on personal prop they own use or lease.. Also the way they are transferred ; personal prop is informal and real prop involves a written sales contract and deed that is recorded with the state
• Conversion of real prop to personal property by detaching it from the land and personal prop may be converted to real prop by attaching it to real property
Fixtures
• Fixtures- thing affixed to realty—when it is attached to the realty by roots; embedded in it; or permanently attached by means of cement, plaster bolts, nails, or screws. Fixtures are included in the sale of land if the sales contract does not provide otherwise
• The role of intent when courts decide whether item is a fixture they examine th intention of the party who placed the object on the property. Is deemed a fixture if prop attached cannot be removed without causing damage and the propery attached is so adapted to the rest of the realty as to become a part of it.
• Trade Fixtures is personal property that is installed for commercial purposes. They remain the property of the tenant unless removal would irreparably damage the building.
Acquiring ownership of personal property
• Possession Sometimes a person can become owner of personal prop by possessing it; i.e catch a wild animal
• Production Produce personal property i.e. writers, inventors, manufacturers
• Gift voluntary transfer of property ownership
• Donative Intent When gifts are challenged the court looks at language of donor and the surrounding circumstances and relationship of parties.
Personal Property & Bailments
Chapter 49
2/4/12
3:25
Personal Property and Bailments
Personal Property versus Real Property:
• Real Property Realty, real estate—land and everything permanently attached to it
• Personl property chattels, is capable of being moved
• Distinction important both properties are subject to different taxes- tax rate is based on market value of real prop and businesses usually pay taxes on personal prop they own use or lease.. Also the way they are transferred ; personal prop is informal and real prop involves a written sales contract and deed that is recorded with the state
• Conversion of real prop to personal property by detaching it from the land and personal prop may be converted to real prop by attaching it to real property
Fixtures
• Fixtures- thing affixed to realty—when it is attached to the realty by roots; embedded in it; or permanently attached by means of cement, plaster bolts, nails, or screws. Fixtures are included in the sale of land if the sales contract does not provide otherwise
• The role of intent when courts decide whether item is a fixture they examine th intention of the party who placed the object on the property. Is deemed a fixture if prop attached cannot be removed without causing damage and the propery attached is so adapted to the rest of the realty as to become a part of it.
• Trade Fixtures is personal property that is installed for commercial purposes. They remain the property of the tenant unless removal would irreparably damage the building.
Acquiring ownership of personal property
• Possession Sometimes a person can become owner of personal prop by possessing it; i.e catch a wild animal
• Production Produce personal property i.e. writers, inventors, manufacturers
• Gift voluntary transfer of property ownership
• Donative Intent When gifts are challenged the court looks at language of donor and the surrounding circumstances and relationship of parties.