Property, Fall Class materials will be available on my class website. Beginning next week, you may access them by going to
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1 Property, Fall 2013 Class materials will be available on my class website. Beginning next week, you may access them by going to and clinking on the Courses link and then the Property link OR You may go directly to the page for the class Classes/Property_Current_Year/Property_ Fall_2013_Homepage.htm Property What is it, how can I get some, and why do I care? What are property rights? What types of property are there? What are the purposes of property? What are the problems associated with different types of property? What are the indicia of ownership of property? 1
2 What Are Property Rights? A method of allocating or distributing costs and benefits: resources, wealth, and/or power. Types of Property? Communal Private Government Anti-communal Open-access Controlled access 2
3 Types of Property cont d Personal Real (land) Marital Image/voice/persona Intellectual Purposes of Property? To help form expectations which people can reasonably hold in their dealings with others. Expressed in terms of laws, customs, and social mores. 3
4 Purposes of Private Property cont d To internalize externalities. To have more of the costs of a person s activities concentrated on that person. To reduce the transaction costs of agreeing with the community. Negotiating costs. Holdouts. Free-riders. Policing the agreement. Information costs. To promote the efficient use of resources. Utilitarian view. Purposes of Private Property cont d To create, nourish, and preserve individuality, autonomy, and healthy diversity. Personhood. To create zones that others must respect. Space. To distribute or redistribute wealth. 4
5 Purposes of Private Property cont d To adjust to new cost-benefit possibilities. Fur trade. To ensure political freedom. Freed from the feudal hierarchy. Alienability. Indicia of Ownership of Property Markings Records Boundaries The way others perceive my use 5
6 Rights of Private Property Ownership? The right to use the property in any way you wish? What about land use restrictions such as zoning and nuisance law? The unfettered right to leave it idle? To do nothing with it? What about adverse possession or housing codes? Rights of Private Property Ownership cont d The right to sell the property (alienability)? What about restrictive covenants or future interests in the transferor? The right to leave it to your heirs? What about the rule against perpetuities? The right to exclude others? What about easements? 6
7 Problems with Property Fairness Efficiency Free riders Holdouts Tragedy of the commons Transaction costs Externalities Class Outline I. Introduction Property: What is it, how can I get some, and why do I care? II. Transfers of Land The American Dream According to Fannie Mae III. Estates and Future Interests My house is an estate? And who can (or can't) inherit it? 7
8 Class Outline Cont d IV. The Estate for Years : Landlord-Tenant What every law student should have known before getting his/her apartment. V. Land Use Controls/Non- Possessory Estates When someone else can tell you what you can do with your property. VI. Eminent Domain & Takings This land is my land or is this land your land? What We Won t Cover Personal property Zoning Marital property Snout Houses 8
9 Acquisition by Discovery, Capture, and Creation Discovery (or Conquest)? Johnson v. M Intosh Quieting Title/Chain of Title Status of Native Americans Johnson v. M Intosh, 21 U.S. 543 (1823), p. 3. Discovery/Conquest Rule First European discoverer s rights against Native Americans other Europeans Other Europeans rights against Native Americans 9
10 Johnson v. M Intosh Cont d Chain of Title First discovering European nation? Native Americans? How could the first discoverer extinguish the claims of the Native Americans? Johnson v. M Intosh Cont d United States? Chain of Title monopsony power universally recognized, universal, validity has never been questioned 10
11 Johnson v. M Intosh Cont d A Logical Place to Begin Occupancy v. Possession (positivism) First in time, i.e., first in possession Pros and cons Alternatives John Locke s labor theory Modern day claims 11
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