Nature of Personal Property Flashcards
Title to PERSONAL PROPERTY is transferred by _____?
Bill of Sale
REAL PROPERTY is transferred by _____
DEED
Name 3 types of PERSONAL PROPERTY?
FTC
- Fructus Industriales/Emblements
- Trade Fixtures
- Chattel
What are the two types of Chattel?
- Chattels PERSONAL (cars, boats, furniture, livestock)
- Chattels REAL -
NON-OWNERSHIP interests in REAL PROPERTY (Leases).
“Chattel” was used to differentiate ownership of _____ from ownership of ______?
LAND from ownership of CATTLE
What is a CHATTEL MORTGAGE?
A mortgage on personal property - such as a lien on a car or tractor.
Personal Property can be either Tangible or ______?
Intangible. Examples of TANGIBLE personal property include cars, boats, horses, jewelry, cattle. Examples of INTANGIBLE personal property are stocks, bonds, mortgages, notes.
TRADE FIXTURES
PERSONAL PROPERTY belonging to a BUSINESS TENANT that is a necessary part of a their trade or business (a bar, bar stools, etc)
When must TRADE FIXTURES be removed?
BEFORE the expiration of the lease or within a reasonable agreed upon time. If they are not removed, they transfer over to the property owner.
Who is responsible for damage to real estate caused by removal of TRADE FIXTURES?
The TENANT.
REPLACEMENT FIXTURES
IMPROVEMENTS installed by a business TENANT to replace pre-existing (before the start of the LEASE term) fixtures in need of replacement. (New bar to replace an old one, new AC to replace an old one, etc).
Are REPLACEMENT FIXTURES considered Trade Fixtures?
No. And they remain the property of the landlord and stay even after the tenant has moved on.
What is the difference between Real Property Fixtures and Trade Fixtures?
- Trade Fixtures remain the property of the Renter/Tenant.
- They’re not permanent and are REMOVED at the end of the tenant’s lease.
FRUCTUS INDUSTRIALES / EMBLEMENTS
Industrial crops that are produced annually through labor.
Are EMBLEMENTS personal property before the harvest?
YES. So a landlord cannot terminate the property lease of a tenant farmer, and NOT give the farmer the right to re-enter the property to harvest his crops.
