Chapter 6: Property Law

Question 1

Real property

Answer 1

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.

Question 2

Personal property

Answer 2

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.

Question 3

Property Law is created and enforce by the…

Answer 3

state in which the property is located

Question 4

Ownership

Answer 4

A bundle of rights in respect to property: use it, prevent others from using it, lend it, etc.

Question 5

Title

Answer 5

The right of ownership

Question 6

Quiet Title

Answer 6

The process of the court listening to the facts to determine who has title

Question 7

Documents of Title

Answer 7

Deed to a house, title to a car, etc. which proves ownership

Question 8

Conveyances

Answer 8

Transferring of title between owner and buyer. Often with houses conveyance happens at settlement

Question 9

Sole ownership

Answer 9

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

Question 10

Intestate Sucession

Answer 10

Property will pass to defendant’s heir according to an established hierarchy. If spouse and children, the property is split equally among them.

Question 11

Concurrent ownership

Answer 11

2 or more people jointly own assets.

Question 12

Three types of concurrent ownership?

Answer 12

1. Tenancy in common 2. Joint tenancy with rights of survivorship 3. Tenancy by the entirerty

Question 13

Tenancy in common

Answer 13

If one co-owner dies, his/her share will pass to his/her heir(s)

Question 14

Joint tenancy with rights of survivorship

Answer 14

If the co-owner dies, his/her share will pass to the surviving co-owner.

Question 15

PA legislature’s rule for concurrent ownership

Answer 15

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.

Question 16

Tenancy by the entirerty

Answer 16

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.

Question 17

In cases where a spouse abusing the authority of a tenancy by the entirerty

Answer 17

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).

Question 18

Community property states

Answer 18

Regards all property acquired during the marriage, with the exception of that obtained through gift or inheritance, as being jointly owned by the couple.

Question 19

What happens to a tenancy by the entirety is there is a divorce?

Answer 19

The property becomes a tenancy in common with each spouse owning one half interest

Question 20

Encumbrance

Answer 20

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.

Question 21

Easement

Answer 21

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.

Question 22

Tangible personal property

Answer 22

Physical object such as a car

Question 23

Non-Tangible personal property

Answer 23

Rights such as the right to own stocks, patents, etc.

Question 24

Purchase

Answer 24

Transfer of title from one owner to another for payment/compensation. The manner to go about this is outlined in the Uniform Commercial Code

Question 25

Gifts

Answer 25

A transfer of title to property without payment or compensation. The gist can either be inter vivos or causa mortis

Question 26

Inter-vivos gift

Answer 26

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

Question 27

Causa-mortis gift

Answer 27

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.

Question 28

Ways to attain property

Answer 28

1. Production 2. Possession 3. Abandoned Property 4. Treasure-trove 5. Purchase 6. Gift

Question 29

Production

Answer 29

A person who takes scraps of fabric and creates a quilt owns the quilt because she created it by her own labor

Question 30

Possession

Answer 30

If you kill an animal, you have acquired title to the animal, UNLESS you trespassed on someone else’s property

Question 31

Abandoned Property

Answer 31

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.

Question 32

Treasure-trove

Answer 32

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.

Question 33

Lost Property

Answer 33

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

Question 34

Mislaid property

Answer 34

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

Question 35

Popov v. Hayashi

Answer 35

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.

Question 36

Bailment

Answer 36

The owner of personal property gives possession of the item to someone else, usually for a particular purpose.

Question 37

Bailor

Answer 37

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

Question 38

Bailee

Answer 38

The person temporarily in possession of the property

Question 39

3 Categories of Bailments

Answer 39

1. 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.

Question 40

3 Elements of Bailments

Answer 40

1. 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.

Question 41

Bailee lien

Answer 41

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.

Question 42

Hadfield V. Gilchrist

Answer 42

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.

Question 43

Fee Simple Absolute

Answer 43

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.

Question 44

Fee Simple Defeasible

Answer 44

AKA Conditional/Qualified Fees, it conveys all rights of ownerships so long as the owner complies with certain conditions.

Question 45

Implied Warrant of Habitability

Answer 45

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.

Question 46

Johnson V. Scandia

Answer 46

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.

Question 47

Expressed contract

Answer 47

Elements are specifically stated- offer, acceptance, and consideration

Question 48

Implied contract

Answer 48

Evolves when no written contract is present

Question 49

Implied-in-fact

Answer 49

The common understanding based on the conduct of the parties serves as contract

Question 50

Implied-in-law

Answer 50

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.

Question 51

Exculpatory clause

Answer 51

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.

Question 52

Dean V. Gruber

Answer 52

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.

Question 53

Testamentary gift

Answer 53

A gift given by a will. Ex: parent may leave real property to a child by a will

Question 54

Escheat

Answer 54

If no legal heirs exist, the property will be transferred to the state

Question 55

Adverse possession

Answer 55

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.