Chapter 6: Property Law Flashcards
Real property
The land going from the center of the earth to the heavens and everything permanently attached to the land. Ex: Building, tress, driveway. Real property is governed by real estate law.
Personal property
Everything else that is not real property. Ex: Car, books, clothes, furniture, stock, patents, etc. Tangible and NonTangible items. Personal property governed by property law.
Property Law is created and enforce by the…
state in which the property is located
Ownership
A bundle of rights in respect to property: use it, prevent others from using it, lend it, etc.
Title
The right of ownership
Quiet Title
The process of the court listening to the facts to determine who has title
Documents of Title
Deed to a house, title to a car, etc. which proves ownership
Conveyances
Transferring of title between owner and buyer. Often with houses conveyance happens at settlement
Sole ownership
On person enjoys the rights and liabilities of property. After the sole owner passes, the property goes to whoever the owner desires in will or by intestate succession if there is no will
Intestate Sucession
Property will pass to defendant’s heir according to an established hierarchy. If spouse and children, the property is split equally among them.
Concurrent ownership
2 or more people jointly own assets.
Three types of concurrent ownership?
- Tenancy in common 2. Joint tenancy with rights of survivorship 3. Tenancy by the entirerty
Tenancy in common
If one co-owner dies, his/her share will pass to his/her heir(s)
Joint tenancy with rights of survivorship
If the co-owner dies, his/her share will pass to the surviving co-owner.
PA legislature’s rule for concurrent ownership
Unless the owner’s clearly state that the co-tenancy is a “joint tenancy with the right of survivorship,” it will be considered a tenancy in common.
Tenancy by the entirerty
Special form of co-ownership designed to protect the marital assets from creditors and insures easy transition of the property to the surviving spouse upon a tenant’s death. NEITHER spouse can convey his/her interest in the property without the other. Each spouse owns 100% interest in the property and cannot dispose of the asset without the consent of the other.
In cases where a spouse abusing the authority of a tenancy by the entirerty
Two elements must exist in order for a court to find that such an “implied mutual agreement” has severed a tenancy by the entireties. 1. A misappropriation by one spouse (the offer) 2. The other spouse must file a suit for an accounting relief (acceptance).
Community property states
Regards all property acquired during the marriage, with the exception of that obtained through gift or inheritance, as being jointly owned by the couple.
What happens to a tenancy by the entirety is there is a divorce?
The property becomes a tenancy in common with each spouse owning one half interest
Encumbrance
Any right that someone has in another’s real property. Ex: If a home owner rents her house, she still owns the house but not longer has all of the rights of ownership because she has given some to the tenant for the term of the lease. Another example is a bank that obtains interest in land until the loan is repaid.
Easement
The granting of a non-possessory right to use a part of the land by an entity that does not own the land. Ex: utility companies can put electric lines in the ground of the owner’s property. An easement can be created by a contract, deed, or implication. New owners of property must honor the same easement.
Tangible personal property
Physical object such as a car
Non-Tangible personal property
Rights such as the right to own stocks, patents, etc.
Purchase
Transfer of title from one owner to another for payment/compensation. The manner to go about this is outlined in the Uniform Commercial Code
Gifts
A transfer of title to property without payment or compensation. The gist can either be inter vivos or causa mortis
Inter-vivos gift
A gift given while the donor is alive. To complete the first 1. the donor intends to make the gift 2. the donor delivers the property to the donee 3. the donee accepts the property
Causa-mortis gift
A gift given in expectation of approaching death. The gift is only effective if the donor actually dies as a result of the condition they believed would cause their death. Ex: If grandfather gives grandson gold watch because he believes he will die of pneumonia soon, and then recovers, the grandfather can revoke the gift.
Ways to attain property
- Production 2. Possession 3. Abandoned Property 4. Treasure-trove 5. Purchase 6. Gift
Production
A person who takes scraps of fabric and creates a quilt owns the quilt because she created it by her own labor
Possession
If you kill an animal, you have acquired title to the animal, UNLESS you trespassed on someone else’s property
Abandoned Property
If personal property has been abandoned by its owner, title may be acquired by anyone who finds it. The owner clearly has no intention of claiming it or finding it. Abandonment requires intent and an act that manifests a conscious purpose of the owner to neither use nor retake property into his possession.
Treasure-trove
Treasure has been hidden so long that the owner is dead or unknown. If the owner is unknown, the finder acquires title against the owner of the land where it was found.
Lost Property
If property is lost or mislaid, the person who lost or misplaced the item retains title. If someone finds the property, he/she does not acquire title to it as against its rightful owner. Most states have statutes that specifically govern lost property. Also, police are held to a higher standard then ordinary citizens as it is part of their duty to guarantee protection of lost property
Mislaid property
Voluntarily and intentionally placing something by the owner and forgetting where that place was. Ex: Leaves textbook in the back seat of a friends car
Popov v. Hayashi
From the time the ball was hit it became abandoned property. Since it cannot be deduced if Popov would have or wouldn’t have caught the ball due to the large crowd that swarmed him, each man (Popov and Hayashi), has equal claim to the ball- cut in half.
Bailment
The owner of personal property gives possession of the item to someone else, usually for a particular purpose.
Bailor
The owner of the property. The bailor continues to have title to the property but has given up some of the rights of ownership- possession and use, to the bailee
Bailee
The person temporarily in possession of the property
3 Categories of Bailments
- Sole benefit of the bailor Ex: someone takes care of friends dog for free 2. Sole benefit of the bailee. Ex: Someone lends car to a friend so he/she can get to work 3. For the mutual benefit of bailor and bailee. Ex: Renting a car, taking clothes to cleaner, shipping a package, etc.
3 Elements of Bailments
- Item must be personal property 2. Property is delivered into possession of another 3. Property is delivered pursuant to an agreement, which may be either expressed or implied.
Bailee lien
Bailee may retain possession of item until the bailor pays the bill. As well, the bailee under law had the right to temporarily possess and use property for the purpose of the agreement and has a right to compensation if already discussed.
Hadfield V. Gilchrist
Gilchrist towed Hadfield’s car and while in the storage lot, the car was vandalized. The court determined the agreement was for mutual benefit. The court ruled that Gilchrist failed to show that he used ordinary care in the good’s storage and safekeeping which resulted in the court awarding Hadfield $4,030.
Fee Simple Absolute
Originates from feudalism because the concept of fee land ownership descends from the feudal system. Most completed form of ownership- possess, exclude, encumber, and alienate property. However, the government still retains certain rights in privately owned property.
Fee Simple Defeasible
AKA Conditional/Qualified Fees, it conveys all rights of ownerships so long as the owner complies with certain conditions.
Implied Warrant of Habitability
The law requires as part of all residential leases, the right of the premises being fit for human habitation. If the premises are not habitable, a constructive eviction has occurred, allowing the tenant to sue the landlord for damages or recession of lease. Ex: Lack of heat, running water, leak in the roof, or pest infestation The tenant is usually required to give the landlord notice of the problem and an opportunity to fix it.
Johnson V. Scandia
Johnson sued Scandia for damages she suffered as a result of shock from touching two appliances while cooking in the apartment Scandia owned. The issue is if a warranty of habitability is applicable. Johnson did not give notice to Scandia about the defect, and did not allege the defect was present at the time of entry or arose after taking possession. The court rules Johnson’s injury was not reasonable foreseeable and ruled in favor of the defendant.
Expressed contract
Elements are specifically stated- offer, acceptance, and consideration
Implied contract
Evolves when no written contract is present
Implied-in-fact
The common understanding based on the conduct of the parties serves as contract
Implied-in-law
Fictional contract imposed by a court as a legal remedy to prevent injustice. It is forced in favor of the wronged party, and against the party that obtains an undue advantage or gains at the expense of the other.
Exculpatory clause
Provides landlord is not liable for injures sustained upon the leased premises, whether due to the landlord’s negligence or some other cause. These clauses are not enforceable in residential leases because they violate the public policy that people need a safe place to live. In commercial cases, these clauses may be enforceable if the tenant knowingly agrees to the clause.
Dean V. Gruber
Ms. Dean fell and sustained injuries while walking down the driveway to visit her sister, a tenant of the apartment complex owned by Mr. Gruber. The general rule is a landlord does not owe a duty to his tenant, and is not liable for personal injuries received by his tenant or by a tenant’s invitee caused by dangerous conditions of the premises EXCEPT 1. When the landlord had knowledge of condition and fails to make disclosure 2. when the injury occurs in a common area 3. When a landlord is responsible for making repairs, but negligently fails to do so. The judgement of the lower court was affirmed that the landlord was not liable.
Testamentary gift
A gift given by a will. Ex: parent may leave real property to a child by a will
Escheat
If no legal heirs exist, the property will be transferred to the state
Adverse possession
A means of acquiring title by possession and using property for a required statutory period of time in a way that is adverse, actual, open, and exclusive. EX: homeowner who erects a fence 5 feet onto his neighbors property may end up owning that extra property if the trespass goes unchallenged for the appropriate number of year.
