In order to maintain some excitement behind the loot system, details on what properties can drop will be kept vague and left for players to discover, but certain expectations will be outlined here so that players may plan their builds accordingly;
Enchantment Bonus: Obtainable on loot up to +4. +3 will be fairly common.
Stat (STR/INT...) Bonus: Obtainable on loot up to +4 for all stats. +5 is possible, but extremely uncommon.
AC Bonus: Obtainable on loot up to +4, +3 fairly common.
Adamantine: throwing darts, shurikens, and throwing axes obtainable on loot, but rare.
Misc: Keen obtainable on weapons, but replaces a property slot. Spell Resistance obtainable on items. All skills obtainable on items to some degree. Traps obtainable up to "Strong" on loot drops. Ammunition up to +4 obtainable, but +4 is rare.
Skullport has a brand new loot system that ties in closely with crafting, courtesy of [USER=55]@edith[/USER]. Loot drops have been made more useful in nature, with less enchanted items being instant vendor trash and completely worthless. Sufficient gear to outfit your character won't be too difficult to come by. Finding the perfect set of gear, however, remains a challenge to maintain the addictive pursuit for loot.
All chests have a chance to drop magical loot, mundane loot, or miscellaneous loot. Mundane loot is unenchanted chaff that is used to balance the drop rates of magical items. Miscellaneous loot includes ammunition, traps, grenades, gemstones for crafting, etc.
Magical loot comes with a guaranteed major property. These properties come in three tiers of varying power, an example would be +1 AC/+2 AC/+3 AC for first, second and third tier respectively. In addition, there is a chance the item will also contain a minor property on top of the major one, also in three tiers. An example of this might be +4 Spot/Search, or +1 stacking AC (stacking with the +3, creating a +4 AC item).
Loot drops that have a third tier major and minor property are afforded a small chance to also contain a legendary property. These are unique properties that sometimes come with adverse effects, but give the item a distinct flavor and unique property. An example legendary property is "... of the Firelord : +2d6 fire damage, -5 physical damage". There are many legendary properties to discover, and many more will be added in the future.