Chapter 5 Flashcards
What are the four ways an interest in personal property can be acquired?
1) creation or purchase by owner - build a brewery
2) accession (increase or addition) barley into beer
3) confusion (intermingling of fungible goods … 2 farms combine resources)
4) gift
5) bailment
What is the relative value test?
If the value of the finished product greatly exceeds the value of the original goods, an innocent party who makes improvements may retain title to the product and pay the owner the reasonable value of the original goods.
What happens in the case of accidental confusion?
The parties jointly own the goods in proportion to original ownership interests.
What are the three elements of a gift?
1) donative intent to make a present gift
2) delivery
3) acceptance
What is the term of a copyright?
Author’s lifetime plus 70 years for general copyrights and 95 years for works made for hire and works copyrighted before 1978.
What is the term of a patent?
17 years.
What duty of care is owed by the bailee in the following situations?
1) only bailee benefits
2) only bailor benefits
3) both benefit
1) extraordinary care.
2) slight degree of care
3) reasonable care under the circumstances
What is the doctrine of negligent entrustment?
A bailor is responsible for the bailee’s negligence if the bailor entrusts an incompetent bailee. (ex. drunk driver)
What are the three types of property ownership interests?
1) Fee Simple estates
2) Life Estates
3) Concurrent Estates
How does a life estate work?
Last only for the life of the donee (life tenant) or another specified person. The life tenant has exclusive possession (but not ownership) of the land and may keep all income
it produces. He can not transfer more than his interest.
Can a joint tenancy a) be severed by sale? b) be mortgaged c) be subject to individual creditors of joint tenants?
a) can be severed by sale
b) may be mortgaged
c) is subject to individual creditors of the joint tenants
Can tenancy by the entirety be a) be severed by sale? b) be subject to individual creditors of joint tenants?
a) cannot be severed by sale .. is severed by divorce
b) is not subject to individual creditors
A shared interest in property that may be sold or willed.
It may be held in unequal shares and may be created by more than one transaction.
tenancy in common
What is community property?
Property acquired by a husband and wife with shared funds (either’s income, neither’s inheritance) during their marriage.
What are the three requirements of a contract of sale for real property?
1) writing and the signatures of the vendor and vendee
2) essential terms (description of premises and its price)
3) unessential terms (time of closing, etc)
What is a quit-claim deed?
Transfers whatever ownership rights, if any, the grantor has and contains no warranties.
What is a general warranty deed?
contains the grantor’s warranties (covenants) that the title is free of any encumbrance, that he has the title
being transferred, and that no one else has better title.
What is a special warranty deed?
the grantor warrants that the title is free of any encumbrance since he took title.
What is a bargain-and-sale deed?
transfers specific ownership rights like a warranty deed, but does not contain warranties of title.
Why aren’t cooperative ownership and condominium ownership strictly concurrent ownerships
Owners do not have equal rights to the entire property.
What are the requisites for a deed?
- be in writing;
- be signed by a named and legally competent grantor;
- specify the grantee, the consideration, and the property rights conveyed;
- include the date;
- contain a paragraph that states who transferred the property to the grantor, when it was transferred, and where that deed is recorded;
- include words of conveyance; and
- be delivered to the grantee.
Is a buyer of a property liable for mortgage payments if he takes the property ‘subject to’ the mortgage?
No
Is a buyer of a property liable for mortgage payments if he ‘assumes the mortgage?’
Yes
How does a land contract work?
Buyer takes possession of land and pays taxes and insurance. Only gets title after certain percentage is paid.
How does a trust deed work?
Land is transferred from borrower (trustor) to a trustee for the benefit of beneficiaries (bondholders).
What are the positives and negatives of a trust deed?
Positives: allows borrowing large sums of money, easier to sell, may be foreclosed without court proceeding.
Negative: May be difficult to administer if there are a large number of beneficiaries.
What does a general contractor have to show to assert a lien?
- substantial performance of the contract,
- improvement of a specific piece of property under the contract, and
- specific mention in the contract of the property to be improved.
What info does a notice of (mechanic’s) lien contain?
- the amount claimed,
- the claimant’s name and address,
- the type of improvement,
- a description of the land, and
- the owner’s name.
How do mechanic’s liens attach in most states?
all mechanics’ liens from a project relate back to the day the project started–even liens of subcontractors who were hired later. All mechanics’ liens will take priority over a mortgage that was filed the day after the work started.
What does a party have to have to create an adverse possession grant of full title?
a. exclusive,
b. open and obvious,
c. hostile (without the owner’s permission)
d. possession and use of property
e. for a continuous period (specified by statute),
When does a property owner have the right to lateral and subjacent support?
When the bordering land is natural.
When does personal property become a fixture?
a. attached to real property in such a way that its removal would cause substantial injury to the real property or the fixture,
b. machinery necessary for the operation of the building,
c. intended to become real property by the party installing it.
the nonpossessory right to use another’s property for a particular purpose that benefits adjacent property; can be created by express words, by implication, or by adverse
possession.
easements
Zoning that prohibits additional buildings or requires high standards.
exclusionary zoning
A use permitted by the ordinance but subject to limitations; often granted for the general welfare, such as churches and schools.
special exception
This may be granted in a situation in which, because of size, topography, or other physical limitations, a given lot does not conform to the ordinance.
hardship variance
This permits an otherwise prohibited use within the zone.
use variance
If John has a convenience store in an area where the zoning is changed, does he have to close shop?
No. A nonconforming use is allowed to continue.
What does eminent domain require?
A condemnation proceeding and fair compensation.
A tenancy that automatically renews without a termination date. It can be created by express agreement or by a holdover tenant.
Periodic tenancy
What are a landlord’s rights?
1) recover property in same condition less wear and tear.
2) recover rents when due
When can a tenant be relieved of paying rent.
Constructive eviction.
Asks landlord to remedy
Leaves the premises.
When a landlord removes tenant’s possessions and changes lock.
self-help eviction
When a court sanctions, enforces and effects an eviction.
summary eviction
when a landlord peacefully seizes and sells possessions for defaulted rent.
distraint.
