BUS607 Week 6 Discussion 2 Property Rights

Property rights

Real property and personal property

Real property is any land, building, or other immovable object owned by the state (Berto,2018). This includes any home you live in, your car, and your furniture.

Personal property is generally anything you buy with money, which you move from one location to another (Bridge,2015). You’ve probably seen people refer to this as their “stuff.”

The most significant differences between real and personal property are:

1.      Real property cannot be bought or sold in most countries without the government’s consent. Personal property can be bought and sold freely. This includes land, buildings, or any of its accessories considered part of the estate. These items include a car, family furniture, or a pet.

2.      The original owner’s heirs cannot inherit real property. In other words, if the current owner dies, their estate doesn’t have control over the real properties. And once an inheritor sells it, there is no legal way of tracing who bought it and where they are currently located. Personal property can be inherited by an heir because they can sell it or give it to someone else to pass on the inheritance.

3.      Real property can be seized by the state if its owner does not pay taxes or other fees. They could also be seized if they were obtained illegally, used illegally, or needed to make room for a public project. Personal property can only be seized under very special circumstances, like when it is used in a crime committed.

4.      You cannot use real property to generate income because they are immovable properties directly. Personal property can be sold and generate income if you’re lucky enough to find someone willing to spend a lot of money on your goods. This includes antiques and collectables that people may want to own because they appreciate their beauty or historical significance.

5.      Families and governmental entities can exchange real property as long as they have the state’s permission or if it was obtained through inheritance. Personal property exchange must be conducted with the owner’s permission or in a public market.

6.      You cannot sell the real property unless the government has entered into a written contract. This contract contains information that guarantees the buyer that they are purchasing something legally owned by their seller and can be traded freely without any obligations to its former owner except for paying taxes on their new property. If you want to buy personal property, you can purchase it at a store or shop around for good deals at garage sales, flea markets, and auctions.

Distinction importance

The distinction is important because it allows the government to be strict about who can own real property. In some countries, only families who belong to a certain social class or have been elected by the state can own real property because they are considered patriotic or productive members of society. Real property also helps ensure that people don’t live in absolute squalor. Certain laws may prevent certain people from living in nice houses or apartments, and this is often used to control what types of behaviours are acceptable in society.

The distinction is also important because it can help the government regulate the number of people who have access to land, water, and other resources that are necessary for sustenance. The government usually makes sure that people don’t have too much real property so that everyone has enough.

Fixture

A fixture is a special type of real property that is owned in perpetuity. A fixture, like a home or piece of furniture owned for many years, can only be sold by the original owner’s heir, not the state. In other words, it can be passed down from parent to child as long as it is properly registered with the government and given what is known as “custodial rights” which means that when it comes time to sell or give away their property, heirs owe their responsibilities to the state rather than their current owner.

A fixture can be an artwork that creates a permanent effect on someone’s surroundings such as a sculpture garden or memorial park. It can also be a building that has been permanently altered to enhance its owners' property. For example, if you install a swimming pool in your backyard and landscape the surroundings, those objects would be considered fixtures.

A fixture is different from the personal property because it cannot be bought or sold by the original owner. The only way to transfer ownership of a fixture is through an heir and must have proper custodial rights for it to transfer effectively.

Bailment

Bailment is a contractual relationship between two parties where one party (the bailor) grants possession of a thing to the other party (the bailee) and the latter undertakes an obligation to return that thing by a certain time when asked (Davidge,2020). If a bailment is made with somebody or something, it may be called a “bailment”. The “thing” can also be an event, such as the enjoyment of recognizance to ensure the fulfilment of obligations. A bailment is not always voluntary, but it is still considered contractual if there are non-specified aspects about rights associated with the property in question.

Bailment and secured interest differences

Secured interest is an interest in property that has been given to a secured party, who holds the interest as security against the other party’s performance of an obligation (the debtor) in return for an agreed-upon sum of money (the consideration). The secured party is entitled to enforce its rights under the contract by selling or otherwise disposing of the interest. 

There are a number of differences between bailment and a secured interest. In a bailment, there’s no consideration; while in a secured interest, there is some consideration. 

In bailments, there is usually no contract associated with them and any rights or obligations associated with them are usually not documented anywhere.

 In secured interests, all parties are usually required to enter into a formal contract for the transaction.

References

Davidge, C. V. (2020). Bailment. LQ Rev., 41, 433.

Berto, F. (2018). Existence as real property. In Existence as a Real Property (pp. 61-83). Springer, Dordrecht.

Bridge, M. (2015). Personal property law. OUP Oxford.