Property Flashcards
What is Property
-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
What are the characteristics of property?
known as the “bundle of sticks”
-possess
-control
-use
-transfer
-gain income
-exclude
What is the rationale for private property system?
-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
What is real property?
ownership of or interests in land
What is personal property?
it is tangible and intangible
What are the land rights of ownership?
air, surface, and subsurface
What are fixtures?
personal property that becomes part of land
examples: carpet, hardwood floors, lighting
What is fee simple?
fullest legal rights, forever
What is life estate?
-a landowner can grant land to a person for that person’s life
What is reversionary interest?
land reverts back to grantor when life owner dies
What is remainder interest?
land transferred to another when life owner dies, grantor has no interest
What is leasehold estate?
some but not all property rights granted to tenants by a landlord
What are easements?
-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
What are security interests?
-when a party obtains an interest in property in exchange for extending credit
-land is collateral
How do security interests work?
if the borrower defaults on debt, the creditor can seize/sell the object of the security interest to satisfy the debt (example: foreclosure)
What are the two types of security interests?
mortgage and deed of trust
What is mortgage security interest?
property owner grants security interest in land in exchange for loan to purchase the property
What is Deed of Trust?
property owner grants security interest in land in exchange for a loan
What are the ways to exercise a security interest after default?
foreclosure, deficiency, and right of redemption
What is an Artisan’s Lien?
property interest arising when someone contributes parts and/or services to personal property
What is a Mechanic’s Lien?
property interest arising when someone contributes materials and/or materials to real estate
What are zoning ordinances?
laws that divide counties or municipalities into designated districts
What are the types of zoning ordinances?
residential, commercial, industrial, and agricultural
What are the ways to acquiring resources in a property system?
-exchanging resources
-acquiring through possession
-adverse possession
-gift
How are exchanging resources governed?
rules of contract
How do you acquire through possession?
-by physically holding and controlling
-first person to posses un-owned property becomes the owner (rule of first possession)
-abandonment
What are the rules of abandonment?
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
What is adverse possession?
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
What happened in Popov vs. Hayashi?
MLB abandons homerun baseballs, popov takes first possession, baseball knocked out of popov’s hands, hayashi takes possession, popov sues hayashi
What must the land be in order for adverse possession to occur?
open and notorious, continuous, wrongful, and prescribed for period of time
What is the goal of adverse possession?
to encourage land use
What are the rules of gifts?
-no mutual exchange of resources
-once a donor gives a gift, the donee becomes owner of that gift
