Lecture 1 - Legal Concepts Flashcards
[..] refers to the physical land and improvements constructed on the land
Real estate refers to the physical land and improvements constructed on the land
[..] refers to the ownership rights associated with real estate
Real property (=realty) refers to the ownership/property rights associated with real estate
Estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset?
Land
Building
Mortgage
Fence
Estate is property, which can be either a tangible or an intangible asset. Which of the following would be considered an intangible asset?
Land
Building
MORTGAGE
Fence
Property rights can be divided into two classes, real and personal. Which of the following is an example of real property?
Vehicles
Stocks and bonds
Patents
Commercial building
Property rights can be divided into two classes, real and personal. Which of the following is an example of real property?
Vehicles
Stocks and bonds
Patents
COMMERCIAL BUILDING
A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if there is a conflict, which rule prevails)?
Manner of the attachment
Character of the article and manner of adaptation
Intention of the parties
Relation of the parties
A fixture is an object that formerly was personal property but has become real property. Of the following four rules for determining whether an object has become a fixture, which is the most dominant (i.e. if there is a conflict, which rule prevails)?
Manner of the attachment
Character of the article and manner of adaptation
[Intention of the parties]
Relation of the parties
What term BEST describes a person that owns a property and is conveying title to the property to another person?
Mortgagor
Grantor
Mortgagee
Grantee
What term BEST describes a person that owns a property and is conveying title to the property to another person?
Mortgagor
[Grantor]
Mortgagee
Grantee
What legal document conveys title from one person to another
Mortgage
Note
Deed
Title
What legal document conveys title from one person to another
Mortgage
Note
[Deed]
Title
The single largest asset category in the net worth portfolios of households is:
government and corporate bonds
stocks and mutual fund shares
consumer durable goods
housing
The single largest asset category in the net worth portfolios of households is:
government and corporate bonds
stocks and mutual fund shares
consumer durable goods
[housing]
Explanation
As explained in the welcome video, housing is the dominant asset in the portfolio of households.
The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called
amortisation
discounting
compounding
accounting
The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called
amortisation
[discounting]
compounding
accounting
Based on your understanding of the rules for determining when an object becomes a fixture, which of the following items would most likely be considered a fixture at the time of sale?
Custom (built-in) bookshelves
Refrigerator in a single-family residence being sold
close
Fence installed by the tenant of a rental property
Curtains
Based on your understanding of the rules for determining when an object becomes a fixture, which of the following items would most likely be considered a fixture at the time of sale?
[Custom (built-in) bookshelves]
Refrigerator in a single-family residence being sold
close
Fence installed by the tenant of a rental property
Curtains
Explanation
They are most likely to be intended to be used permanently with the property.
Fixtures:
- items [.] to be [.] attached to homes
- used to be [..] but have become [..]
Fixtures:
- items intended to be permanently attached to homes
- used to be personal property but have become real property
e. g. dishwashers, garage, stove, furnaces, elevator,….
[..] are property rights that can be apportioned (bundled): Rights exercised by property owner: - [.] - [.] - [.] - [.] These rights are also called '[.]'.
Real property are property rights that can be apportioned (bundled):
Rights exercised by property owner:
- Possess
- Use
- Enjoyment
- Disposal
These rights are also called ‘interests’.
“Interest”: a legal term to describe a property right.
Interests can be transferred to another party, i.e. can be [.] / [.] / used as [.] for a loan.
“Interest”: a legal term to describe a property right.
Interests can be transferred to another party, i.e. can be bought/ sold/ used as collateral for a loan.
[.] = Home owner: pledges the purchased property as a security for a loan [.] = Mortgage [.] : obtain a ''[.] '' (or [.]) interest in the house
Mortgagor = Home owner: pledges the purchased property as a security for a loan
Mortgagee = Mortgage lender: obtain a ‘‘secured’’ (or security) interest in the house.
If the mortgagor fails to repay the loan, the lender can sell the house and apply the proceeds to the outstanding loan.
[.] = Landlord = Home owner [.] = Tenants
Lessor = Landlord = Home owner Lessee = Tenants
Title: legal evidence or ‘’[.]’’ of ownership
- Title contains documents, records, act.
- A marketable title is one that is [.] and ‘reasonably free from [.] ‘’.
To ensure that, conveyancing solicitor usually search for relevant records.
Examples of a defective title:
> a piece of land of the estate not included in legal title
> outstanding tax liens on the property
> missing signatures of corners of a spouse / other parties with interests in the property
Title: legal evidence or ‘‘proof’’ of ownership
- Title contains documents, records, act.
- A marketable title is one that is valid and ‘reasonably free from litigation.
To ensure that, conveyancing solicitor usually search for relevant records.
Examples of a defective title:
> a piece of land of the estate not included in legal title
> outstanding tax liens on the property
> missing signatures of corners of a spouse / other parties with interests in the property
[.] : a written document that captures the desire of one party (‘[.]’) to transfer ownership of real estate to another party (‘[.]’)
Deed: a written document that captures the desire of one party (‘grantor’) to transfer ownership (= convey Title) of real estate to another party (‘grantee’)
Personal property (=personalty): rights on ? &/or ? things (e.g. cars, patents, bank accounts,,…)
Personal property (=personalty): rights on intangible &/or movable things (e.g. cars, patents, bank accounts,,…)
”?” = all that a person owns = realty + personalty
“estate” = all that a person owns = realty + personalty
The owner of real estate may choose to pledge (encumber) his property as a collateral to obtain a mortgage/loan.
Owner retains possession and use.
Lender receives only “ a ??”
The owner of real estate may choose to pledge (encumber) his property as a collateral to obtain a mortgage/loan.
Owner retains possession and use.
Lender receives only “ a secured interest”
