Assignment 1: Business Analysis

a) The two basic divisions of property are real property and personal property. “Real property law applies to ownership to land and interests in land such as mining rights or leases. Personal property is all other types of resources that are protected under the law, another way of putting it, they are moveable resources” (Reed, 2013 p.199). Personal property can be divided into tangible and intangible resources. Tangible resources are items that you can actually touch, where intangible resources lack physical form.
b) The legal issue involving the chandelier is to determine if it is a fixture of the property or not. Since the chandelier is attached to the property, it needs to be determined if that was one of the selling features that helped the buyer decide to purchase this property. Legally in most cases the buyer will win this dispute because “a chandelier is wired and bolted to the ceiling, and is automatically included in the home sale because it is a fixture and fixtures are real property” (Bruss, 1998). The seller could go to the buyer and tell them that the chandelier is a family heirloom and they would be willing to find something similar to replace it, so they can take it with them. It comes down to negotiating in order …show more content…
A mortgage gives an interest to the bank in the form of property, as in a house or land as collateral for the loan. A deed of trust is a document that shows a borrower’s debt to the lender. The house and land is held as collateral for the loan. “The deed is held by a third party called a trustee who holds full legal ownership to the land. The debtor will obtain legal ownership only when the deed has been repaid” (Reed, 2013 p.211). A land sales contract is where the owner of the land sells it to a buyer. In this transaction though, the owner of the land retains ownership until the buyer pays the full purchase