Chapter 13 - Property & Regulation of Business

Question 1

What are the two types of property?

Answer 1

Real: Property that is fixed to one location

Personal: All other property

Question 2

What traits are looked at to determine if a property is real or personal?

Answer 2

We look at:

• Use
• Intention of parties
• How it is attached

Question 3

What are the three types of deeds?

Answer 3

1. Quitclaim deed: Deed makes no warranties about title
2. Grant deed: Transferor warrants that they have done nothing to create any impairments of title during their period of ownership
3. Warranty deed: Transferee is guaranteed full rights of use and enjoyment of the property. Guarantee there are no claims against title.

Question 4

What is notice-race?

Answer 4

Priority of claims when purchasing real property.

Priority is given to the party who records first. If the second party records first and did not know about the sale to the first party, then they get priority.

Ex: If Spencer sells property to A first then B, if A records first they get the property. If B records first they will only get the property if they did not know about A’s prior sale.

Question 5

What is tenancy in common?

Answer 5

Where two or more persons have separate interests in the same property.

If one co-owners dies, their interest is given to their beneficiaries

Can transfer interest without the consent of others

Question 6

What is joint tenancy?

Answer 6

Where two or more people have equal interest in the same property.

• Interest must be equal in time, title, interest, and possession
• If a co-owner dies there interest is transferred to the other tenants in equal shares (right of survivorship)
• Can transfer interest without consent of others, but lose the right of survivorship with new person

Question 7

What is tenancy by the entirety?

Answer 7

Joint interest held by a married couple. Each spouse has right of survivorship.

Question 8

What does it mean to “assign” a lease?

Answer 8

It means to take the exisitng lease and give it someone else with all the rights associated with it

Question 9

What does it mean to sublet a lease?

Answer 9

It means you let someone use all the rights of the lease, but you are still liable to the owner. The subletter has the obligation to pay the leaser and the leaser has the obligation to pay the owner.

Question 10

What are the benefits covered by FICA?

Answer 10

• Old age or retirement benefits
• Benefits to survivors and divorced spouses
• Payments for disability and to disabled children
• Medicare benefits