Avoiding Stupidity in Property Ownership: A Lesson from Professionals

Diego Ospina Serna

Hatched by Diego Ospina Serna

Nov 13, 2023

3 min read

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Avoiding Stupidity in Property Ownership: A Lesson from Professionals

In our pursuit of success and intelligence, we often overlook the importance of avoiding stupidity. The renowned blog, Farnam Street, highlights the significance of this approach in their article "Avoiding Stupidity is Easier than Seeking Brilliance." The author emphasizes that professionals understand they are not playing the same game as amateurs. This insight is especially relevant in the context of property ownership.

The concept of property ownership is defined by the Civil Code, which states that it encompasses four faculties: use, enjoyment, disposition, and reclamation. However, it is crucial to recognize that these faculties do not solely define the rights of the property owner. They represent only a fraction of the possible rights that can be associated with property.

It is essential to understand that all legal relationships are inherently between two or more individuals. It is incorrect to speak of legal relationships between individuals and property, as this would imply that property has its own legal relationships with individuals. Instead, legal relationships, including ownership, are established between people.

Subjective rights can be classified into three main groups: rights of personality, family rights, and patrimonial rights. Rights of personality are inherent to every individual simply by virtue of being human. Family rights arise from familial relationships, while patrimonial rights have an economic dimension. Real rights fall within the realm of patrimonial rights.

The distinction between real rights and rights of credit, or personal rights, has been established since Roman law. Real rights directly pertain to things (res), permeating and inundating them. This creates a direct relationship between the holder of the real right and the object of that right. On the other hand, personal rights do not establish a direct relationship with the object of the obligation. For example, in a loan agreement, the creditor, as the holder of the personal right, cannot directly appropriate the money owed to them. They possess a right against the debtor to receive payment. In this relationship, there are three elements: the creditor (holder of the personal or obligational right), the debtor (the obligated party), and the performance (the obligation that binds the debtor to the creditor).

Drawing parallels between the insights from Farnam Street and the concept of property ownership, we can see the importance of avoiding stupidity in this domain. Just as professionals understand that they are not amateurs, property owners must recognize the complexities and nuances of their rights and responsibilities. By avoiding common pitfalls and mistakes, property owners can ensure long-term success.

To achieve this, here are three actionable pieces of advice:

  • 1. Educate yourself: Take the time to familiarize yourself with the laws and regulations surrounding property ownership. Understand your rights and responsibilities as a property owner to avoid any legal issues in the future. Seek professional advice if needed.
  • 2. Conduct due diligence: Before purchasing a property, thoroughly research its history, potential risks, and any encumbrances. This will help you make an informed decision and avoid any unpleasant surprises down the line.
  • 3. Regular maintenance and inspections: Property ownership comes with ongoing responsibilities. Regularly maintain and inspect your property to identify and address any issues promptly. This proactive approach will prevent small problems from turning into costly and time-consuming repairs.

In conclusion, the wisdom shared in "Avoiding Stupidity is Easier than Seeking Brilliance" by Farnam Street holds valuable lessons for property owners. By recognizing the differences between professionals and amateurs and applying this mindset to property ownership, individuals can navigate the complexities of real estate with greater success. Remember to focus on avoiding mistakes and seeking knowledge, rather than solely pursuing brilliance.

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