Property
Oxford dictionary (online) defines property as “a thing or things belonging to someone”. But is this enough to address our question of “What is property?”. variously, the word property has been used to refer to an object (such as a building); or a legal right connected with an object (such as a lease of building) which gives the tenant the right to use the building. Property can also refer to legal rights not necessarily connected to an object but that have economic value such as intellectual property rights (such as a patent, or copyrights). We can refer to the word property as anything which can form part of a person’s estate including things and incorporeal interests and rights.
Ownership of property
Ownership of property refers to a set of legal rights that are recognized by law and society generally. An individual or a company can own a building or land or a fleet of vehicles. Ownership of a property, such a building, gives the owner exclusive rights to use, sell, mortgage, or rent it out to a tenant. No person can use another’s property without the owner’s consent. If one tries to use another person’s property, the owner can use courts to remove him. Owners of a patent or copy rights have rights to sell them, or license it to others. In market economies (for example, in Britain and USA) ownership of private property is protected by the Constitution.
Property rights
Legally put, the term property simply refers to a person’s rights in relation to something other than the property in question itself. We need to emphasize that the acquisition and use of real property (immovable property such land and buildings) and personal property (tangible moveable property and intangible property such as copyrights and patents) important business decision. Some businesses chose not to own but rent when they core focus is no real estate or property management. A bank may opt to rent buildings for operations instead of owning them reasoning that its core functions are banking not property management and real estate.
Classification of Property
- Personal Property includes all the objects and rights that can be owned. It includes ownership of buildings, private land, vehicles, intellectual property rights, and others.
- Real Property is land and anything attached to land. Real property includes immovable property such land and buildings.
- Public property refers to property held by government and its agencies. E.g., Land may be owned by the central government authorities, cities, or municipalities. The public property usually
means that it is held by government on behalf of the citizens. Such a public asset therefore belongs to every citizen of that country but not one of them can use or rent it out without the permission of government.
Classifications
- Private property belongs to individuals or other legal entities that are not government. It includes land, buildings, vehicles, tamed animals, and intellectual property rights.
- Tangible property refers to physical property such as land, buildings, vehicles, etc.
- Intangible property refers to the property which has no physical existence. Such property includes copyrights and patent rights, easements, and bonds. See Intellectual Property right slides
