Chapter Nine Flashcards
Real property
also known as real estate; land and items growing on or permanently attached to that land
Lessor/landlord
the owner of the property being leased
Leasehold
a parcel of real estate held under a lease
Tenancy at will
an arrangement in which no time period is specified and the lessee can leave or the lessor can reclaim the land at any time
Tenancy at sufferance
a situation in which the person in possession of the land has no legal right to be there
Security deposit
an amount of money, usually equal to one month’s rent, that is collected at the time the lease is signed and then held by the landlord to cover the cost of repairs that may be needed when the tenant moves out
Quiet enjoyment
the tenant’s right to be free from interference from the landlord with respect to how the property is used
Implied warranty of habitability
a requirement that property be fit for the purpose for which it is being rented
Owners are required to repair and maintain the premises at certain minimum levels
Evict
to remove a tenant from possession of rental property
Constructive eviction
an act by a landlord that makes the premises unfit or unsuitable for occupancy
Listing agreement
a document that spells out the nature of the services a real estate agent will perform to selling real property and how the agent will be compensated for those services
Earnest money
the money the buyer turns over to the real estate agent to be applied to purchase price of property
Title search
an examination of documents recording title to the property to ensure the owner has a clear title
Encumbrance
a lien or other type of security interest that signifies that some other party has legit claim to the property
Mechanic’s lien
a claim filed by a contractor or repair person who had done work on a building for which he or she has not been fully paid
Abstract
a condensed history of the title, which includes the chain of ownership and a record of all liens, taxes, or other encumbrances that may impair the title
Deed
the legal document that formally conveys title to the property to the new owner
Joint tenancy
ownership by two or more persons who have equal rights in the use of that property
when a joint tenant dies, that person’s share passes to the other joint tenant(s)
Tenancy in common
ownership by two or more people.. when a tenant in common dies, that person’s share passes either by will or by intestate statute
Closing statement
an itemized all allocation of all the costs and moneys exchanged among the various parties, including financial institutions and real estate broker, when a property is sold
Land contract
an installment contract for the sale of land
Restrictive covenant
a provision in a deed that prohibits specified uses of the property
Easement
a right to use property owned by another for a limited purpose
License
permission to enter or use the property of another that can be revoked at any time
Foreclosure
a person gets kicked out of their house because they did not pay, mainly with mortgages
Power of sale clause
a clause authorizing a private foreclosure sale that does not require court action
Eminent domain
the power of gov to take private property for public purposes
Just compensation
the amount of money the gov must pay the owner of property it seizes through eminent domain
Adverse possession
a transfer of real property rights that occurs after someone other than the owner has had actual, open, adverse, and exclusive use of the property for a number of years
Personal property
all property that is not real property
Tangible property
personal property, such as cars, jewelry, clothing, and tv sets that can be touched and moved
Intangible property
personal property that cannot be touched
Bailment
a temporary transfer of personal property to someone other than the owner for a specified purpose
Bailor
the owner of the personal property that is being temporarily transferred as part of a bailment
Bailee
the party taking temporary control of the personal property during a bailment
Intellectual property
intangible assets, such as trademarks, copyrights, and patents
Trademark
a name, combination of letters and number, or logo that identifies a particular product
Service mark
a mark used to identify a service oriented business
Copyright
an author or artists’s right to control the use of his or her works
Patent
a right to exclude others from making, using, or selling one’s invention
Trade secret
a formula or process that has been patented and is known by a limited number of individuals working for the company that uses it
Estate
the total property of whatever kind, both real and personal, that a person owns at the time of his or her death
Estate planning
the process of analyzing a person’s future financial needs, developing strategies to meet those needs, and determining how the remaining assets should be distributed following that person’s death
Will
the document used to express a person’s wishes as to how his or her property should be distributed upon death
Intestate
when a person dies without a valid will
Testator/Testatrix
the person making a will to direct how his or her assets will be distributed at death
Executor/Executrix
a person appointed by the testator to carry out the directions and requests in his or her will
Self proving clause
a notarized affidavit, signed by the attesting witnesses, which may eliminate the need to call witnesses during the probate process to attest to the validity of the will
Codicil
a supplement or addition to a will that modifies, explains, or adds to its provisions
Trust
a legal relationship in which one party holds property for the benefit of another
Donor
a person who creates a trust
Trustee
the person appointed to administer a trust
Durable power of attorney
a document that gives someone else power to act for you if you become incapacitated and unable to handle matters on your own
Do not resuscitate
a document designed to inform emergency responders that the person does not want to be resuscitated
Physicians Orders for Life Sustaining Treatment
a form that requires health care professionals to give or withhold the treatments specified on the form
Probate
the process of court supervision over the distribution of a deceased person’s property
Administrator/Administartix
a person appointed by the court to manage the assets and liabilities of the decedent
Testamentary capacity
the mental capacity, whereby the testator understands the nature of his or her property and the identity of those most closely related to him or her
Kindred
persons related to the decedent by blood
Affinity
persons related to the decedent by marriage
Lineal heir
someone who is a grandparent, parent, child, grandchild, or great grandchild of the decedent
Collateral heir
one who has the same ancestors but does not descend from the decedent
Per stirpes
a method of diving an intestate estate whereby a person takes in place of the dead ancestor
Rental of real property
Criteria for renters The lease Security deposits Living conditions in rental units Evictions
Buying and selling real estate
Listing the property Negotiations Preparation for the closing Tenancy by the entirety The closing Land contracts
Limitations on the use of real property
Zoning Laws
Building permits and safety requirements
Restrictive covenants and homeowner associations regulations
Easements
Involuntary loss of property
Seizure by a creditor
Eminent domain
Adverse possession
Elements of adverse possession
- Actual
- Open
- Adverse
- Exclusive
- Continuous
Tenancy by the entirety
joint tenancy applicable only to married couples, they are viewed as one
Tenancy for a term
the lease established a set period of time during which the lessee will have control and after which all rights revert to the lessor
Periodic tenancy
the rental periods are established at a set interval
Four leasing agreements
Periodic tenancy
Tenancy for a term
Tenancy at sufferance
Tenancy at will
Two ways in which an owner’s right to use his or her property may be limited by private arrangements
Restrictive covenants
Easements
Transfer of personal property
It can be sold, given away, or seized
Mislaid
Bailment
Bailor vs bailee
Intellectual property Types
Trademarks Service marks Copyrights Patents Trade secrets
Enforcing intellectual property rights
acquired becomes personal property
identify who, cease, damages and injunctions
Formal will
prepared and signed by a testator
Informal will
holographic handwritten
Nuncupative will
oral
Devise
real estate
Bequest
personal property
Living trust
allows a person, while still living, to benefit another
Living wills and Medical Directives
medical directive expressing a person’s wishes
Revocable trust
may add changes to a trust
Challenges to a will
Testamentary capacity
Have to be adult
Voluntary
In regards to real and personal property
property can change its nature from real to personal or from personal to real
Gregg planted flowers and built a fence next to his driveway. Twenty years later he found out that the fence was actually two feet over the property line.
Gregg could go to court immediately alleging that he is the rightful owner under a theory of adverse possession.
John and James owned a farm as joint tenants. John died. In his will he left all of his property to Martha.
James will acquire the entire farm.
Janet bought a new home that was part of a recently developed subdivision. In her deed was a prohibition against having more than two freestanding structures on her property. Such a prohibition is an example of
a restrictive covenant
A provision in Smith’s deed provides that he must provide a right-of-way across his property for the benefit of his landlocked neighbor. This is an example of
easement
Mark contracted with Sam to buy Sam’s house using a land contract. According to the terms of the contract, Mark was to pay Sam $1,000 a month for 20 years. Mark moved into the house and made the payments for 19 years, but then lost his job and was unable to make the last year’s payments. If Sam goes to court, the judge will declare that
Sam owns the home, can keep the payments, and can evict Mark
All of the following are examples of personal property, except
garage
Jim signed a lease agreeing to rent an apartment for six months. This is an example of
tenancy for a term
Mary found a ring laying on the edge of a sink in a public bathroom at her school.
This is mislaid property, and Mary may not keep it as she has acquired no ownership rights.This answer is correct.
