Property Finder Fee Agreement

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					          Chapter 43
Personal Property and Bailments
            Learning Objectives
 What is real property? What is personal
 What does it mean to own property in fee simple?
  What is the difference between joint tenancy and
  tenancy in common?
 What are the three elements necessary for an
  effective gift?
 What are the three elements for an effective
 What are the basic rights and duties of the bailee?
  The Bailor?
Definition: Property consists of legally
 protected rights and interests a person
 has in anything with an ascertainable
 value that is subject to ownership.
   Difference Between Real and Personal Property.
   Ownership rights in each.
Acquiring Ownership of Personal Property.
Laws Governing Mislaid, Lost, or Abandoned

        Property Ownership
Property ownership is viewed as a
 “bundle of rights”, including the:
  Right to possess.
  Right to sell.
  Right to give.
  Right to lease.
  Right to destroy.

             Fee Simple
Person who owns the entire “bundle of
 rights” is said to be the owner in fee
Fee simple gives the owner the maximum
 possible estate or right of ownership of
 real property, continuing forever.
Chapter 37 will deal with realty estates.

          Concurrent Ownership
Tenancy in common (Fig.          A       B       Fig.1
1). A and B own an undivided
interest in the property. Upon
B’s death interest passes to
B’s heir, ―C‖.                           C

Joint Tenancy (Fig. 2). A
                                                 Fig. 2
and B own an undivided
interest in property but, upon
B’s death, B’s interest              A       B
passes to A, the surviving
joint tenant.                                         6
      Concurrent Ownership
Tenancy by the Entirety (not common)
  Usually between husband and wife.

Community Property (limited # of states)
  Property acquired by couple during their
   marriage is owned as an undivided ½ interest in
   property (real and personal).

        Acquiring Ownership
        of Personal Property
 Possession.
    Capture of wild animals (wild animals belong
     to no one).
    Finding of abandoned property.
    Adverse Possession.
 Production.
    Writers, inventors, manufacturers, and others
     who produce personal property acquire title to
 Voluntary transfer of property
  ownership from Donor (owner) to Donee
  (recipient) for no consideration.
 Three types
   Intervivos—while donor is living.
   Causa Mortis: -- made by donor in
    contemplation of imminent death.
   Testamentary – after death, by

Three requirements for valid gift:
  Delivery—actual or ―constructive‖
   (symbolic, such as keys to car).
    • Donor must give up complete control or
      dominion. Delivery by a 3rd party is OK.
  Donative intent on the part of the donor
  Acceptance by the Donee.

      Acquiring Ownership of
        Personal Property
 Will or Inheritance.
 Accession.
    Someone adds value to a piece of personal property by
     use of either labor or materials.
 Confusion.
    Commingling so that a person’s personal property
     cannot be distinguished from another’s.
    Fungible goods consists of identical particles such as
     oil or grain.

              Mislaid, Lost
         or Abandoned Property
Mislaid Property: Voluntary placed somewhere,
 then inadvertently forgotten. Finder is steward for
 true owner.
Lost Property: Involuntarily left. Property owner
 acquires title against whole world, except for true
 owner. Finder must return to true owner or be liable
 for conversion.
Abandoned Property: Discarded by true owner
 with no intention of recovering. Acquires title against
 all the world, including the original owner.
A bailment is formed by the delivery of
 personal property, without transfer of title, by
 one person (Bailor) to another (Bailee), usually
 under an agreement for a particular purpose.
The property must be returned by the Bailee to
 the Bailor, or a third party as directed by the
 Bailor, in the same or better condition.

      Elements of a Bailment
Personal Property. (Tangible or
 Intangible--but not persons or realty.)
Delivery of Possession.
  Bailee given exclusive control or possession.
  May be actual or constructive.
  Bailee must knowingly accept (Bailee must
   intend to exercise control over chattel).
Bailment Agreement.
  Express or Implied.
          Ordinary Bailments
Bailment for the sole benefit of the Bailor:
  A gratuitous Bailment; Bailee owes Bailor a low
   duty of care, liable only for gross negligence.
Bailment for the sole benefit of the Bailee:
  Bailee owes Bailor a high duty of care and is
   liable for even slight negligence.
Mutual Benefit Bailment: most common.
  Each party owes the other a reasonable duty of

  Rights and Duties of the Bailee
 Right To Possess.
    Bailee may acquire or use property temporarily. Title does not pass.
 Right to Use Bailed Property.
 Rights of Compensation.
    Reimbursed for costs or services as provided in the
 Right to Limit Liability.
 Duty to Return bailed property in same condition
  to Bailor. Bailee may liable for conversion and/or

 Rights and Duties of the Bailor
Right to have property protected and used as
Right to have property back at end of bailment
 with service or repair done properly.
Right to have the Bailee not convert.
Right to not be bound to limitation of liability
 unless Bailor knows.
Duty to Provide safe goods:
   Mutual Benefit Bailment: free from known or hidden
   defects; Sole Benefit of Bailee: notify if any known defect.

          Common Carriers
Publicly licenses to provide
 transportation services to general public.
Strictly liable for damages except if the
 damages caused by:
  an act of God,
  an act of the public enemy,
  an order of the public authority,
  an act of the shipper,
  the inherent nature of the goods.

 Warehouses and Innkeepers
  Owe duty of reasonable care.
  Can’t exculpate, can limit.
  Owe duty of strict liability, modified by state
   statutes; if innkeeper provides safe and notifies
  If parking area provided and innkeeper accepts
   bailment, then may be liable.
    Termination of Bailments
Mutual agreement of both parties.
Demand by either party.
Completion of the purpose of the
Act by the bailee that is inconsistent with
 the terms of the bailment.
Operation of law.


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