Chapter 49 - Property Law-2 - Chapter 49 Personal Property and Bailments Real property(realty or real estate land and everything permanently attached to

Chapter 49 - Property Law-2 - Chapter 49 Personal Property...

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Chapter 49 – Personal Property and Bailments Real property: (realty or real estate): land and everything permanently attached to it, including structures and another attached permanently to the structures. *Immovable Personal property: (personalty or chattel) everything else… *can be moved. EX: Tangible (tv or car) or Intangible (stocks, patents) Distinction between real and personal property: 1) Taxes: real estate taxes differ by state and paid annually, personal property: sales tax @ time of purchase 2) Acquire or transfer: personal property can be transferred w/ minimum formality (selling a tv); real property (real estate) requires written contract & record w/ state Conversion of real property to personal property: cutting down a tree from a property turns it into personal property (no longer attached), extracting minerals from land makes it personal property. Fixtures : a thing affixed to realty – permanently attached by cement, plaster, bolts, nails or screws; included in the sale of a land if not state otherwise on the sales contract. *Contract should state fixtures that are/ are not included in the sale Role of Intent: Court’s decision on whether item is considered a fixture: 1. The property attached cannot be removed without causing substantial damage to the remaining realty 2. The property attached is so adapted to the rest of the realty as to become a part of it CASE 49.1: APL LIMITED VS. WASHINGTON STATE DEPARTMENT OF REVENUE WHEN: 9/26/1985 PARTIES: Port of Seattle, APL (American President Lines LTD WHAT: Port of Seattle entered into a 30-year lease w/ APL for premises at terminal 5 for loading and unloading shipping container ships. Terminal 5 rebuilt, cranes installed – supported by specially designed steel-reinforced concrete and piers, hard wired to a dedicated high voltage electrical system built specifically for Terminal 5 to power cranes. APL brought suit for a refund on sales tax paid on the rent for the cranes . State argued that the cranes were personalty (personal property) and subject to sales tax. APL appeals: real property, for tax purposes, defined as “land itself” and all buildings, structures or improvements or other fixtures of whatsoever kind thereon Common law to determine whether personal or real Property - 3 prongs: 1. Actual annexation to the realty, or something appurtenant thereto; 2. Application to the use or purpose to which that part of the realty with which it is connected is appropriated 3. The intention of the party making the annexation to make a permanent accession to the freehold
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