Ian Medina: Let me ask you guys a question.
Is this property?
Student: Yes, personal property.
Ian Medina: Personal property.
Does everyone agree?
Audience: Yes.
Ian Medina: Does this property have rights and interest?
Student: Well, you have rights over it.
Ian Medina: Yes, no?
I have rights.
This is a bottle of water.
That's all this is.
This is a bottle of water.
The rights and interest inherent in the ownership of that bottle of water belong to the owner
of the bottle of water.
That is a fundamental concept you have to grasp.
With that bottle of water, here is the bundle of rights.
May I have your name? Student: Chuna.
Ian Medina: Chuna.
Here is a bundle of rights.
With that bottle of water, I can lease it to Chuna.
Student: Henri.
Ian Medina: Henri.
I can give an easement on it to Henri.
Student: Michelle.
Ian Medina: Michelle.
I can take out a mortgage against the money against it.
It's my bottle of water.
Those are the rights that are inherent in that bottle of water.
The house is stuff, the car is stuff, the rights inherent in property belong to the
owner of the real property.
Thank you.
Do we all understand that?
Legal aspects, property.
The way this works is you follow along in your manual and when the information comes
up on the board, when the information slides in, that's what you write in your books.
Property, rights or interests a person has in the thing owned.
That's the bottle of water.
Real property.
Real property is typically defined by whether it is moveable or immovable.
Real property is defined by whether it is movable or immovable.
Okay, a bearing wall.
What's a bearing wall? Student: Something that is [inaudible 00:02:42].
Ian Medina: A bearing wall is a wall that supports-
Student: The house.
Ian Medina: The upper load of the structure.
Usually, it's in a two story building.
The bearing wall supports the second story.
A bearing wall is real property.
That's a question on the test.
It is real property.
Why is it real property?
Student: It's immovable.
Ian Medina: You can't move it.
It's immovable.
What happens if you move it?
Student:The structure- Ian Medina: The building comes down, correct.
Minerals.
Minerals are ... when you own real property, you own from the center of the earth ... I
forgot my house.
When you own real property, you own from the center of the earth up into the heavens.
Does anyone recognize that concept?
Student: Yes.
Ian Medina: Okay.
Basically, if I own property, and I own from the center of the earth up into the heavens,
why can American Airlines fly over my house and not pay me?
Student: [inaudible 00:04:04].
Ian Medina: Huh?
Student: Air rights.
Ian Medina: Air rights.
Easements.
Aviation easements.
Commercial airlines have aviation easements that allow them to fly into private ownership
space.
Under the house we have what's called minerals.
It may be gas, oil, coal, diamonds, whatever may be sitting under there.
Know that minerals are automatically transferred when real property
is sold, because they're real property.
Unless, specifically accepted.
We don't see a lot of that here in Southern California, but you go back to places like
Oklahoma or Texas.
When people sell property, they retain a portion of the mineral rights.
If there's oil underground, or there's gas underground, or coal, or whatever it may be,
an individual may sell a piece of property and retain one fourth or one half, or three
quarters of the real property rights, because that then means that whoever purchases the
home, or the property, if they decide to bring a company into mine and extract the minerals,
that person that sold the property to them gets royalties from it.
Has anyone ever driven up La Cienega?
Oil wells?
See the grasshoppers that's dipping down?
Every time that grasshopper dips down and sucks that oil, somebody gets paid.
That property was under private ownership at one point.