MOS 2275 CHAPTER 13
Real, Personal and Intellectual Property
Real property is described as something that is physically attached to the ground such as a building. It
is a fixed property and cannot move. Meaning it stays the same. Only the portion that can be permanently
be used or occupied (for example you own your house but not the oil under it, if that is the case)
Personal property can move. There are two types:
1) Chattels (tangible goods) which are tangible personal property that can be moved and
weighed. BUT NOT trade fixtures (things that have not been incorporated…)
2) Intangible goods which you cant touch, an example is stocks or bonds. Another example is
“choose in action” meaning the right to sue. (if you got into an accident then you have the right
to sue someone)
Intellectual property deals with ideas or creative works. Some examples are copyrights, patents,
trademarks or industry designs.
Industrial Design something of a unique design, pattern or ornament under the Industrial Design Act
Trade Secrets: Confidential Information that creates a competitive advantage
Interests in Land
Estates in Land: The current law of real property is rooted in the ancient Feudal System of England when
people held their land rather then owned it. At that time, the king actually owned the land, but the right of
possession of it was called Estates in land which was granted if you had the opportunity to work for the
king. There are other types known as estates in fee simple, life estates and leasehold estates.
Fee Simple: What we think of as owning land today. You own the land but are still subject to
municipal/governmental regulations with what the property can be used for. This can be
Life Estate: Upon death of a life tenant, property reverts back to the original owner (rarely
done) but it gives someone excusive right to your property after you die. (used if you want to
keep house in family)
Leasehold estates: land leased to a tenant for a period of time
Lesser Interests in Land Easement right to use a portion of another persons land for a particular purpose (for
example a walkway on a beach that is basically in someone’s backyard.
Right of way: right to cross someone’s land
Easement Acquired by prescription:
License: gives a person permission to use another persons land
Adverse Possession: Flagrant possession tolerated by legal owner (when someone has
had possession of the land for a number of years and the owner had knowledge of it)
Restrictive covenants: where you can restrict what can be done to a property (height or
ceiling for example)
Building Scheme: placing the same restrictive covenants on all properties in a large
Other Interest in Land
Option Agreement: When an offer is made to buy land, it can be revoked at any time
before acceptance. This offer can be made irrevocable when the person making the offer
(offeree) pays additional consideration to keep the offer open for a specific period of time.
Agreement for Sale: When someone buys land and pays for it in installments secured by
a mortgage or agreement for sale. This is like a conditional sale of personal property, where
the title of land doesn’t change until the last payment is done.
Transfer and Resignation of Interest in Land
The first stage in the purchase of property is:
1)Agreement of the purchase of sale between vendor and purchaser (buyer and seller)
Sometimes called an interim agreement
Historically, land was transferred by grant (a document used for transfer had to be under a seal called a
deed of conveyance (shortened to deed)
Registration System: Registration that determines the rights to the parties by the registered documents
Condos and Coops
Mortgages Equity of Redemption gives the mortgages(bankcreditor) the right to redeem the
property if not paid for.
Foreclosure ends equity of redemption
Right to sell
Order for judicial sale: When creditors make sure they don’t loose out when they lend
you money for that mortgage (bank lending you money) They have the right to bring an
application to the court (which is done at the same time as the initial application for foreclosure)
to have property sold. This is an attempt made during the redemption period to sell the
property before the time period expires.
Periodic Tenancy: A basic lease that has a specific start/end date. It is automatically renewed when
the lease is over, going month to month.
Types of Tenancies
Sublet: Example, you rent a bedroom in a house from September 2012 to September 2014 for one year.
You are going home for the summer months (MayAugust) and don’t want to have to pay rent for not being
in the home but will still be staying in the home that following September. You decide to sublet, so you are
renting out your room to someone. That means whoever takes over your lease in the form of a sublet will
have access to your room and everything in it. Whoever you sublet your room to is not responsible for
anything that happens in the room (expenses on ware/tear, broken window)
Assignment: Example, you rent a bedroom in a house from September 2012 September 2013. Due to
extenuating circumstances, you are not able to live there anymore and have to move home. You talk to your
landlord and tell them of