Real and Personal Rights
Real and Personal Rights
Imagine a person owns an orange seed. The seed is planted, grows into a tree, bears fruit, and creates more seeds. Explain the life cycle of that first seed in terms of real and personal property rights.
The Life Cycle of The First Orange Seed in terms of Real and Personal Property Rights
Property is anything that can be legally owned, and it is grouped into two categories; real property and personal property. The distinction between real and personal property is fundamental. The two will differ in matters of the transfer process and the tax laws that govern them. However, understanding these two property rights begins from its definition is essential in paving the way to their development.
Real property is land and the particular things that are fixed or associated with it. It is about raw lands, such as a field with the permanent fixtures attached to it (Lumen, n.d.). The things that are associated with the raw land are such as mineral rights, which are also considered to be real property. Many times, parties will talk of real property by referring it to real estate, which is a reflection of the real property concept and the concept of ownership of the estate. Notably, many businesses, such as the grocery shops or restaurants, depend on real property as it allows the clients or customers to visit the premises for trade to occur. However, the current digital era has moved into conducting virtual business through virtual shops such as eBay. These virtual shops or stores are not real property.
On the other hand, personal property is any property that is not real property. Personal property could either be tangible or intangible property (Lumen, n.d.). The tangible property is anything that could be touched, and any of the tangible and moveable property is to be considered chattel. Most businesses exist for the sale of personal property. In the event of an easy substitution of the property with another identical property, the property is considered fungible property. Intangible personal properties physically non-existent but subjects to ownership rights such as acquisition transfer and sale. Intangible property includes the right to make payments in a contractual agreement, excluding others through a patent product of the right to prohibit others through copyrights.
In consideration of the first orange seed planted, grown into trees to bear more fruit and more seeds, one can relate it to both real and personal property rights. Things such as the electronics one will own all under one’s personal property rights. While when one owns an apartment or house, he or she has the real property rights to these specific items. When an owner plants an orange seed in his farm, it becomes his real property. When the seed grows into a tree, the tree also grants the owner real property rights. However, when the trees bear the fruits and seeds that could be used for further planting, they become personal property to the owner. The minute a fruit is picked from the orange tree grown from the orange seed, it becomes personal property regardless of its growth due to its association with the land. If the orange tree falls, the ownership moves from ranting the owner’s real property rights to granting personal property rights.
The development of the orange seed illustrates the life cycle of real property rights that could become personal property rights. Most of the personal property rights that people own have arisen from real property. An understanding of the differences between these two properties will help illustrate what one could do and not do. In the same way, the different stages that the orange seed will go through will require distinct strategies. As the real property remains real or transforms into personal property, different handling strategies are required. The Government property Clause indicates that ownership of properties will require proper property management plans, systems, and procedures to achieve the desired outcomes (NPMA Course Schedule, 2011).
Another example to understand the transformation of the property into real property includes the purchase of a jacuzzi and installing it in one’s house. The jacuzzi is typically attached to the land as a fixture, and that makes it a legal part of the land. Fixtures generally are considered to be real property. The transfer of fixtures is done as being part of the real property. In case the initial purchaser chooses to leave the premises, they will be obligated to leave it behind as real property unless they place express provisions to have it removed. Notably, some other things may be attached to the land, not as fixtures but remains to be part of real property. A farm that has corn planted in it, the corn crop is considered real property. Picking the corn from the crop then becomes personal property regardless of its growth and attachment to the land, which is real property.
It is prudent for property owners to understand their properties’ life cycle to grasp the respective rules applicable in each stage.
Farag, M. A., Abib, B., Qin, Z., Ze, X., & Ali, S. E. (2023). Dietary macrominerals: Updated review of their role and orchestration in human nutrition throughout the life cycle with sex differences. Current Research in Food Science, 100450.
Lumen. (n.d.). Reading: Personal property | Business law. Retrieved from https://courses.lumenlearning.com/masterybusinesslaw/chapter/personal-property/
Lumen. (n.d.). Reading: Real property | Business law. Retrieved from https://courses.lumenlearning.com/masterybusinesslaw/chapter/real-property/
NPMA Course Schedule. (2011). Life-Cycle Processes & Property Management Part Two: An Overview of Reports; Relief of Stewardship Responsibility; Utilization; Maintenance; and Property Closeout. Property Professional Leaders in Asset Management. February/March 2011. Retrieved from https://cdn.ymaws.com/www.npma.org/resource/resmgr/Property_Professional_/23-1_Feb_2011_FINAL.pdf
Mariana, O.S., Alzate, C. and Ariel, C., 2021. Comparative environmental life cycle assessment of orange peel waste in present productive chains. Journal of Cleaner Production, 322, p.128814.
Piedrahita-Rodríguez, S., Urrea, S. C., García, D. A. E., Ortiz-Sánchez, M., Solarte-Toro, J. C., & Alzate, C. A. C. (2023). Life cycle assessment and potential geolocation of a multi-feedstock biorefinery: Integration of the avocado and plantain value chains in rural zones. Bioresource Technology Reports, 21, 101318.
- Property is grouped into two categories: real property and personal property.
- Real property is land and the permanent fixtures attached to it, such as raw land, mineral rights, and real estate.
- Personal property is anything that is not real property and can be either tangible or intangible. Tangible personal property is moveable and touchable, while intangible personal property is non-existent but subject to ownership rights.
- The life cycle of real property can involve it transforming into personal property, such as when a tree grown from an orange seed becomes personal property when it bears fruit.
- The difference between real and personal property affects the transfer process and tax laws that govern them.
- The development of personal property often arises from real property.
- It is important for property owners to understand their properties’ life cycle to grasp the respective rules applicable in each stage.
- An example of real property transforming into personal property is when a jacuzzi attached to a house as a fixture becomes real property.
- Another example is when a corn crop grown on a farm becomes real property, but picking the corn becomes personal property.
- Proper property management is important to ensure the desired outcomes and adherence to the government property clause.