Property and It’s Kinds

Property:
The word 'property' is derived from the Latin term 'properietate' and the
French equivalent 'proprius' which means a thing owned. The concept of property and
ownership are very closely related to each other. There can be no property without
ownership and ownership without property. The concept of property occupies an important
place human life because it is impossible to live without property.

Definitions Of Property:
According to Locke,
Every man has a property in his own person. Every individual has the
right to preserve his property, that is his wife, liberty and estate."
According to Bentham,
Property is nothing more than the basis of certain expectation of
deriving thereafter certain advantages by a thing the reason of the relation in which we
stand towards it. There is no image, no visible lineament which can property the relation
that constitutes property. It belongs not to physics, but to metaphysics. It is altogether a
conception of Mind. To it, all or any of these physical circumstances failed to assist in
conveying the idea of property.
According to Austin,
The greatest right of enjoyment known to the law, including
servitudes.
Some Acts also define the definition of Property:
SEC 2(C) of the Benami Transaction (Prohibition)Act,1988 also defines Property as:
Property means property of any kind,whether movable or immovable, tangible or
intangible, and includes any right or interest in such property.

SEC 2(11) of the Sale of Good Act,1930 also defines property as:
Property means the general property in goods, and not merely a special property.
Kinds of property:

Property is essentially of two kinds Corporeal Property and Incorporeal Property. Corporeal
Property can be further divided into Movable and Immovable Property and real and
personal property. Incorporeal property is of two kinds Jura in re propria and rights Jura in
re aliena or encumbrances.

1) Corporeal And Incorporeal Property -

(I) Corporeal Property -

Corporeal property is the right of ownership in material things.Corporeal property

is always visible and tangible. Corporeal property can be perceived by senses. It can be seen
or touched.

Examples -A House, Land, Car, Bike etc

Corporeal property may be divided into two classes-

1. Movable Property (Chattels) and Immovable property. (Land and buildings)

2. Real Property and Personal Property

(II) Incorporeal Property -

Incorporeal property also called as intellectual or conventional property. it

includes all those valuable interests which are protected by law.Incorporeal property is
intangible. It cannot be Perceived by Senses.

Examples - Patents, Copyrights, Trademarks etc.

Incorporeal property is divided into two classes-

(a) Jura in re propria: Over Material things (for example: patents, copyrights, trademarks
etc)

(b) Jura in re Aliena: whether over material or immaterial things( for example:
Lease, Mortgages and Servitude etc)
1) Movable Property and Immovable Property -

All Corporeal Property is either movable or immovable. In English law, these are termed as
chattels and land respectively.

(I) Movable Property –

 Movable property is one, which can be transferred from one place to another place with
the human efforts.
As per Section 2(9) of the Registration Act, 1908, “Movable property includes standing
timber, crops, and grass, fruit upon and juice in trees, and property of every other
description, except immovable property.”

Section 22 of IPC defines movable property as, The words “Immovable property” is intended
to include corporeal property of every description, except land and things attached to the
earth or permanently fastened to anything, which is attached to the earth.

As per Section 3(36) of the General clauses Act, “Movable property shall mean the property
of every description, except immovable property.”

Example:Vehicles, electronic devices, jewellery, books, timber etc

(II) Immovable Property -

According to the General Clauses Act, 1897 “Immovable property includes land, benefits
arising out of land and things attached to the earth or permanently fastened or anything
attached to the earth.”

According to the Pakistan Regulation Act, “Immovable property includes land, building,
hereditary allowance, rights of way, lights, Ferries, Fisheries or any other benefit to arise
out of land and things attached to the earth or permanently fastened to anything attached
to the earth but not standing Timber, growing crops or grass.”

Section 3 Para 2 of the Transfer of Property Act 1882 defines Immovable property as
“Immovable property does not include standing Timber, growing crops or grass. Movable
property includes corporeal property which is not immovable.”
Example: Any property that falls under the category of real estate. This includes
constructions like a manufacturing plant, land, residential house, commercial building,
factory, hereditary allowances and more.

According to Salmond, Immovable property (i.e., land) has the following elements-

A) A determinate portion of the surface of the earth.

B) The ground beneath the surface down to the centre of the earth

C) The column of space above the surface ad infinitum.

 D) All objects which are on or under the surface in its natural state.

For Example- minerals natural vegetation, or stones lying loose upon the surface.

E) An object placed by human agency on or under the surface of the land with the
intention of permanent an annexation.

For Example- House walls, Doors, Fences, etc.

2) Real and Personal Property -

In English law, the property has been divided into the real and personal property. This
division is identical to a great extent with that of immovable or movable. The division into
real and personal is not based on any logical principle but is a result of the course of legal
development in England.

a) Real property -

Real property refers to land and any property which is directly attached to it, including
any subset of land which has been changed by legitimate human acts.

Example:Real property can include ponds, buildings, reservoirs, canals, roads, and
machinery.

b) Personal property -

Personal property refers to the items that people own such as furniture, appliances, or
electronics. In short, these items differ from real property because they are
movable.Personal property can be intangible, as in the case of stocks and bonds, or
tangible, such as clothes or artwork.

3) Public property and private property -

Having regard ownership property is either public or private -
(a) Public property -
Public property is that owned by the public as such in some governmental capacity. Public
property is used as a designation of which are Public Juris and therefore, are considered as
being owned by the public. The entire state or the community and not restricted to the
domain of private person or that which belongs to a state or political constituents like
provinces etc.
(b) Private property - The private property is that which is owned by an individual or some
other private person.
Example: The Owner of a house, He has the right to live in it,sell it or rent it out to others.

Types of Incorporeal Property:

1) Jura in re Aliena or Encumbrances:

It includes incorporeal rights over corporeal things. It has further three types.

Lease

Security

Servitude

A.Lease:

A lease is an implied or written agreement specifying the conditions under which a lessor
accepts to let out a property to be used by a lessee. The agreement promises the lessee use
of the property for an agreed length of time while the owner is assured consistent payment
over the agreed period. Both parties are bound by the terms of the contract, and there is a
consequence if either fails to meet the contractual obligations.

B.Security:

It is said to be a right to retain possession of a chattel unit the debt is paid.

According to Salmond:

A security is an encumbrance the purpose of which is to ensure or facilitate the fulfilment or

enjoyment of some other right (usually though not necessarily a debt)vested in the same
person.

There are further two types of security.

Mortgage

Pledge Or Lien

 Mortgages:

A mortgage is a type of loan used to purchase or maintain a home, land, or other types of
real estate. The borrower agrees to pay the lender over time, typically in a series of regular
payments that are divided into principal and interest. The property then serves
as collateral to secure the loan.

Example:
A residential homebuyer pledges their house to their lender, which then has a claim on the
property. This ensures the lender’s interest in the property should the buyer default on
their financial obligation. In the case of a foreclosure, the lender may evict the residents,
sell the property, and use the money from the sale to pay off the mortgage debt.

Types of Mortgages:

Mortgages come in a variety of forms. The most common types are 30-year and 15-year
fixed-rate mortgages. Some mortgage terms are as short as five years, while others can run
40 years or longer. Stretching payments over more years may reduce the monthly
payment, but it also increases the total amount of interest that the borrower pays over the
life of the loan.

The following are just a few examples of some of the most popular types of mortgage loans
available to borrowers.

Fixed-Rate Mortgages:

The standard type of mortgage is fixed-rate. With a fixed-rate mortgage, the interest
rate stays the same for the entire term of the loan, as do the borrower's monthly payments
toward the mortgage. A fixed-rate mortgage is also called a traditional mortgage.

Adjustable-Rate Mortgage (ARM):

With an adjustable-rate mortgage (ARM), the interest rate is fixed for an initial term, after
which it can change periodically based on prevailing interest rates. The initial interest
rate is often a below-market rate, which can make the mortgage more affordable in the
short term but possibly less affordable long-term if the rate rises substantially.

Reverse Mortgages:

As their name suggests, reverse mortgages are a very different financial product. They are
designed for homeowners age 62 or older who want to convert part of the equity in their
homes into cash.

 Pledge Or Lien:

A pledge is a bailment that conveys possessory title to property owned by a debtor

(the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation
and to the mutual benefit of both parties.

C. Servitude:

A servitude is described as a limited real right over immovable property. This right is
registerable and allows the holder of the servitude to exercise some right over another
person’s property.
The three most common property servitudes are:
Personal servitudes
Praedial servitudes
Public servitudes.

Personal Servitudes:

A personal servitude is registered against immovable property in favour of a person or legal

entity. The real right therefore attaches to a person, being the holder of the servitude, and
not the land itself.

Praedial Servitudes:

A praedial servitude is registered against immovable property in favour of other immovable

property. The real right therefore, attaches to the land itself and not a person.

Public Servitude:

Public servitudes are created in favour of the general public and are not registered in favour
of a specific person, legal entity or other immovable property. An example of such servitude
would be a public road.

2)Jura in re Propria or Intellectual Property:

The second kind of incorporeal right is jura in re propria, which refers to the ownership of
intangible property. This type of right includes trademarks, copyrights, patents, and other
types of intellectual property. In this way, one can have full ownership of property that is
incorporeal (or intangible) and does not have a physical presence.

Trademark:

A trademark can be any word, phrase, symbol, design, or a combination of these things that
identifies your goods or services. It’s how customers recognize you in the marketplace and
distinguish you from your competitors.

Example:

you use a logo as a trademark for the handmade jewelry you sell at a local farmer’s market.
As your business grows and you expand online, you might want more protection for your
trademark and decide to apply for federal registration. Registering your trademark with us
means that you create nationwide rights in your trademark.

Patent:

A patent is an example of intellectual property that grants the owner exclusive rights to a
product, process, or invention for a specific duration of time.
Example:
Patents include the Wright Brothers’ patent for the airplane, Thomas Edison’s patent for the
light bulb, and Alexander Graham Bell’s patent for the telephone.

Copyright:

A copyright notice is a short line of text that lets the public know that your work is protected
by copyright law and is not to be copied.These copyright notices are widely used and can be
found all over, from websites and blogs, to films and music.

Example:

if you write a screenplay, novel, or even a blog post, you've just created something new.
Once you put that creation out into the world and allow the public to access it, copyright
law kicks in to help make sure that someone else can't steal a part of (or all of) your
creation.