LEGL 2700 Chapter 7 Flashcards
what is property?
legal right to exclude others from resources that are originally possessed or are acquired without force, theft, or fraud
what are the types of property?
real and personal
what is real property?
land and interests in land (buildings and fixtures)
what is personal property?
all movable sources (cars, cellphones)
define “land”
“whoever owns the soil, it is theirs up to heaven and down to hell” - sir Edward coke
what are fixtures on land?
object of personal property that becomes an object of real property
what is the fixtures on land test ?
has to be a physical annexation (attachment to land) OR use has become so closely associated with the use to which the land is put
what is the grantor?
person who is transferring the real property
who is the grantee?
person who is receiving interest in the real property
what is fee simple estate?
maximum estate (interest) allowed under law
what is fee simple absolute estate?
all the rights (“to Juanita”)
what is fee simple defeasible ?
yours on specific conditions (“to Juanita as long as its used as a manufacturing plant”)
what is life estate?
grants an ownership in land for the lifetime of specified person (“to sally may for life”)
who does the land revert to on a life estate after the person dies?
the original grantor
what is leasehold estate?
property right granted to tenants by a landlord (“to Stacy for 5 years”)
what rights do tenants hold?
the right to possess
what rights does the landlord hold?
the right to sell it
what tenancy’s are under concurrent ownership?
joint tenancy and tenancy in common
what is joint tenancy ?
must be equal and rights of survivorship (the other person gets who property if you die)
what is tenancy in common?
can have different shares and no rights of survivorship (it goes through your estate and heirs get property)
what are easements?
right of someone other than the owner to use a piece of property
how are easements acquired?
transaction with titleholder
reservation in a deed
natural easement
negative easement
easement by prescription
what is bailment?
goods place into another’s possession to be returned in the future
who is the bailor?
owner of property
who is the bailee?
takes possession of the owners property
what are the types of bailment?
for the sole benefit of the bailor
mutually beneficial
for the sole benefit of the bailee
define for the sole benefit of the bailor
slight duty of care
define mutually beneficial
reasonable duty of care
define for the sole benefit of the bailee
high duty of care
what are contract rules?
control the way owners make agreements to exchange resources in the property based on legal system
define the rule of first possession
first person to reduce previously UNOWNED things to possession becomes their owner
what is under property acquisition ?
exchange and possession
what is under exchange?
contract rules
what is under possession?
rule of first possession
what is abandoned property?
first person to reduce abandoned things to possession owns it
what is lost property?
finder becomes owner by reducing the item to possession and following a statutory process
what is mislaid property ?
owner of the premises has a greater claim than the finder
define adverse possession
provides ownership of land under state statutes
when is ownership provided under state statute?
when the possession is:
open and notorious
actual and exclusive
continuous
wrongful
for a prescribed period of time
what is confusion?
occurs when fungible goods are mixed together
what happens if the confusion occurs by honest mistake?
owners hold proportional share of the confused goods
what is accession?
something that is added
what is law of accession?
when people apply efforts to any raw materials and change its nature into finished products, they own the finished products
define donor
gives the object
define donee
receives the gifts
when do gifts take place?
until the donor intends to make the gift and delivers the gift by physical transfer to the donee
what is a testamentary gift?
gift through a will
when is a testamentary gift complete?
until donor’s death
what is a title?
document registered with the state for certain types of personal property that represents ownership
what is a deed?
document of title that transfers ownership of land
what is a warranty deed?
grantor promises grantee there is no one to claim the property
what is a special warranty deed?
grantor will specifically name claims that he or she does not promise/ does not exist
what is the most common type of deed in Georgia?
special warranty deed
what is a quitclaim deed?
I transfer all my interest in this property to you, no guarantee granter has no interest if any exist (divorce)
what are the types of deeds?
warranty
special warranty
quitclaim
rank the deeds based on the amount of protection provided to the grantee from least to most
- warranty deed
- special warranty deed
- quick claim deed
what are the security interests in land?
mortgage
deed of trust
land sales contract
define mortgage
pledge of real property to secure repayment of loan
define deed of trust
similar except that the deed is in favor of a trustee, for the benefit of the lender
define land sales contract
owner sells land to buyer but retains title until purchase price is paid
where must mortgages and deeds of trust be registered?
in a recording office
define foreclosure
process by which a creditor exercises its secured property interest, usually in the form of a public sale
define deficiency
balance owed by the debtor to the creditor-mortgagee
define right of redemption
allows mortgager to get back land upon payment of the full amount of the debt
what is the UCC?
uniform commercial code
what does the UCC effect?
security interest and personal property
What is Article 9?
security interest in Personal Property
when does article 9 arise?
when a lender who has made a loan to a borrower who agrees to give the lender a security interest in collateral
define collateral
valuable object pledge to secure a loan
what is attachment?
creation of security interest
what 3 things must occur for attachment?
- secured party (lender) gives value
- debtor owns the collateral
- security agreement is signed by debtor
what is perfection?
providing notice of a security interest
when does perfection occur?
when a security interest is attached plus a lender has taken all steps required by article 9 (usually filing a financing statement)
what is the general rule of the PMSI exception?
first to file takes priority over subsequently filed statements
what does PMSI stand for?
purchase money security interest
what is a consumer good?
used or bought for use primarily for personal, family, or household purposes
what is exception?
buyer in the ordinary course
a secured creditor does not take priority over what?
a purchase who gives value for collateral
what are the common law liens?
artisan’s lien and mechanic’s lien
what is artisan’s lien?
arises when someone contributes parts and or services to a PERSONAL PROPERTY and is not paid (possessory)
what is mechanic’s lien?
arises when someone contributes materials and/or services to REAL PROPERTY and is not paid (not possessory)
what are the limits on property rights?
nuisance, zoning and taxation
what is a public nuisance?
arises from use of land that causes inconvenience or damage to the public
what is a private nuisance?
unreasonable use of one’s property to cause substantial interference with the use of another’s land
what are zoning ordinances?
laws that divide counties into use districts designated residential, commercial or industrial
what are ad valorem taxes?
personal property and real property
