Property

Question 1

What is Property

Answer 1

-the legal right to posses, use, and transfer resources, and to exclude others from our resources
-absolute, but not infinite
-trademarks are included so you can sue

Question 2

What are the characteristics of property?

Answer 2

known as the “bundle of sticks”
-possess
-control
-use
-transfer
-gain income
-exclude

Question 3

What is the rationale for private property system?

Answer 3

-limited resources must be distributed
-state control and ownership of resources
-individual control and ownership of resources
-allows people to benefit from what they produce
-people increase production effort
-prosperity

Question 4

What is real property?

Answer 4

ownership of or interests in land

Question 5

What is personal property?

Answer 5

it is tangible and intangible

Question 6

What are the land rights of ownership?

Answer 6

air, surface, and subsurface

Question 7

What are fixtures?

Answer 7

personal property that becomes part of land
examples: carpet, hardwood floors, lighting

Question 8

What is fee simple?

Answer 8

fullest legal rights, forever

Question 9

What is life estate?

Answer 9

-a landowner can grant land to a person for that person’s life

Question 10

What is reversionary interest?

Answer 10

land reverts back to grantor when life owner dies

Question 11

What is remainder interest?

Answer 11

land transferred to another when life owner dies, grantor has no interest

Question 12

What is leasehold estate?

Answer 12

some but not all property rights granted to tenants by a landlord

Question 13

What are easements?

Answer 13

-a landowner grants to another a right to access a portion of the landowner’s land
-bought and sold
-recorded in a deed of land and stays with the property forever

Question 14

What are security interests?

Answer 14

-when a party obtains an interest in property in exchange for extending credit
-land is collateral

Question 15

How do security interests work?

Answer 15

if the borrower defaults on debt, the creditor can seize/sell the object of the security interest to satisfy the debt (example: foreclosure)

Question 16

What are the two types of security interests?

Answer 16

mortgage and deed of trust

Question 17

What is mortgage security interest?

Answer 17

property owner grants security interest in land in exchange for loan to purchase the property

Question 18

What is Deed of Trust?

Answer 18

property owner grants security interest in land in exchange for a loan

Question 19

What are the ways to exercise a security interest after default?

Answer 19

foreclosure, deficiency, and right of redemption

Question 20

What is an Artisan’s Lien?

Answer 20

property interest arising when someone contributes parts and/or services to personal property

Question 21

What is a Mechanic’s Lien?

Answer 21

property interest arising when someone contributes materials and/or materials to real estate

Question 22

What are zoning ordinances?

Answer 22

laws that divide counties or municipalities into designated districts

Question 23

What are the types of zoning ordinances?

Answer 23

residential, commercial, industrial, and agricultural

Question 24

What are the ways to acquiring resources in a property system?

Answer 24

-exchanging resources
-acquiring through possession
-adverse possession
-gift

Question 25

How are exchanging resources governed?

Answer 25

rules of contract

Question 26

How do you acquire through possession?

Answer 26

-by physically holding and controlling
-first person to posses un-owned property becomes the owner (rule of first possession)
-abandonment

Question 27

What are the rules of abandonment?

Answer 27

voluntarily relinquish all rights to own and possess property with no intention of reclaiming property
-the first person to possess abandoned property owns the property

Question 28

What is adverse possession?

Answer 28

a person who possesses land owned by another for a set number of years may become owner of that land, usually 20 years of possession required

Question 29

What happened in Popov vs. Hayashi?

Answer 29

MLB abandons homerun baseballs, popov takes first possession, baseball knocked out of popov’s hands, hayashi takes possession, popov sues hayashi

Question 30

What must the land be in order for adverse possession to occur?

Answer 30

open and notorious, continuous, wrongful, and prescribed for period of time

Question 31

What is the goal of adverse possession?

Answer 31

to encourage land use

Question 32

What are the rules of gifts?

Answer 32

-no mutual exchange of resources
-once a donor gives a gift, the donee becomes owner of that gift