For most situations, the term "property" means
a physical or tangible thing. However, property can be more broadly
defined, focusing on the rights which arise out of the object. Thus,
property is referred to as a bundle of rights, which for the
purposes of this material is real estate.
Bundle of rights- Click to listen
Further, property is anything which may be owned. In
turn, ownership is the right to possess the property owned and use it to
the exclusion of others. [Calif. Civil Code §654]
The right to possess and use property includes
the rights to:
sell or dispose;
Property is divided by types into two primary
real estate, also called real property or realty; and
personal property, also called personalty. [CC §657]
characterized as immovable, whereas personal property is movable.
[CC §§659, 657]
defined, by way of exclusion, as all property which is not classified as real
estate. [CC §§658, 663]
Personal property- Click to listen
the distinction between real estate and personal property seems apparent at
first glance, the difference is not always so clear.
Cutting up the real estate
estate may be physically cut up by severance of a part of the earth
(i.e., removal of minerals). Title to real estate may also be cut up in
terms of time, providing sequential ownership.
example, fee ownership may be conveyed to one person for life, and on
their death, transferred by the fee owner to another. Time sharing is
another example of the allocation of ownership by time, such as the exclusive
right to occupy a space for only three weeks during the year.
Title to real estate may also be fractionalized
by concurrently vesting title in the name of co-owners, such as
tenants-in-common, who each hold an undivided (fractional) ownership interest
in the real estate.
Possession to real estate may be cut out of the fee
ownership and conveyed for a period of time. For instance, the fee owner of
real estate acting as a landlord conveys possession of the property to a tenant
under a lease agreement for a fixed term, called a tenancy. When the
tenancy expires or is terminated, possession of the property reverts to
the landlord. The landlord retains fee title to the real estate at all times,
subject to the lease.
Possession may also be cut up by creating divided
interests in a property, as opposed to undivided interests. For example, an
owner may lease a portion of their property to a tenant. The tenant, in turn,
may sublease a portion of their space to yet another person, known as a subtenant.
Other non-possessory interests in real estate may be created, such as liens. Liens are interests in real estate which secure payment or performance of a debt or other monetary obligation, such as a:
trust deed lien; or
local property tax lien.
nonpayment of a lien amount, the lienholder may force the sale of the real
estate to pay off and satisfy the lien.
Lien - Click to listen
an owner's rights in a parcel of real estate extend beyond the mere physical
aspects of the land, airspace and improvements located within the legally
described boundaries of the property.
1. Property is best defined as:
a moveable thing.
a trade secret.
a bundle of rights.
2. Property is divided by types into two primary categories:
real estate and personal property
assets and liabilities.
residential and commercial.
3. Personal property is best defined as:
all property which is less valuable than real estate.
all property which is not classified as real estate.