Law Difficult

Question 1

What are the bundle of rights?

Answer 1

• Possession: The right to occupy the property
  
  • Enjoyment: The right to possess the land without harassment or interference
  • Exclusion: the right to refuse other interests in your property
  • Control: the right to determine interest in the property for others
    Disposition: the right to determine how, when, and if the property is to be sold/transferred

Question 2

What are the five legal tests to determine whether something is a fixture (real property) or may be removed (personal property)

Answer 2

MARIA
- Method of annexation/attachment - A bookcase with a single screw to hold it against the wall, for example would be considered personal property. A bookcase that has molding and a base built around it to attach it to the wall would be considered a fixture, because it is more firmly and permanently attached.

• Adaptability of item / adaptation of an item to the real estate - This factor occurs when an item of personal property is customized to fit in the house. Even if your stand-alone fireplace were not cemented in, the patio was built around it so it is a fixture
• Relationship of the parties - The best example of this is a commercial tenant in a rental building who attaches fixtures to the structure, perhaps jewelry cases in a jewelry store. Such fixutres are known as trade fixtures. The tenant normally not only is able to take them when he leaves but probably is required to remove them.
• Intention of placing items on land - the intention of the party who installed them
• Agreement of parties - An agreement made in advance between two parties - a landlord and tenant, for example - can define what is considered personal property and what is considered a fixture.

Question 3

What is the difference between Lien theory and Title Theory?

Answer 3

In Title Theory states, the borrower has equitable title, but the lender or trustee holds legal title to the property. Typically a deed of trust is used as a security investment

In Lien Theory states, The borrower holds legal and equitable title, and the lender has a lien against the property. Typically, a mortgage is used as a security investment

CO is a Lien Theory state.

Title theory and lien theory are mainly important because of the ways in which they affect the lender’s ability to foreclose. It’s generally easier and faster to foreclose in a title theory state, because the lender (or the trustee) already holds title to the property.

Colorado is a lien theory state that uses the deed of trust as the typical security instrument in real estate transactions. Colorado code states that the instrument shall be deemed a lien. for most transactions, the instrument will name a public trustee who manages the release when the debt is fully repaid or ensures that proper foreclosure procedures are followed if the borrower defaults