Property and Bailments Flashcards
Property
legally protected rights/ interests in anything with an ascertainable value that is subject to ownership
Real property
Land and everything attached to it
Personal property
-Property that is moveable
Tangible property
Cell phones, cars, etc.
Intangible property
Stocks, patents, copyrights
Fee simple
Absolute ownership entitling the property owner to use/possess/dispose of the property as one chooses during their lifetime
-Upon death the ownership goes to heirs
Concurrent Ownership
-Persons share the ownership rights simultaneously
Tenancy in common
-2 or or more ppl own an undivided interest in property
-Upon death the tenants interest is passed to their heirs
Joint tenancy
-Each of two or more people own an undivided interest in a property
-A deceased join tenant interest passes to the surviving tenants
Community property
-Each spouse owns an undivided one half interest in property acquired during marriage
Gift
Voluntary transfer of property made without consideration
3 requirements for an effective gift
- The donor must intend to make the gift
- The gift must be delivered
- The donee must accept it
Mislaid property
-Property that the owner has voluntarily parted with and forgotten
A person who finds mislaid property…
DOES NOT OBTAIN TITLE TO IT!!
Lost property
Property that the owner has involuntarily parted with and cannot find
A finder of lost property…
Can claim title to the property against the whole world except the true owner
Estray statutes
Encourages and facilitates the return of property to its true owner
-Rewards the finder for honesty if the property remains unclaimed
Abandoned Property
Property that has been discarded by the owner who has no intention of reclaiming it
-If a person finds abandoned property they acquire title to it, except if they are trespassing, then it will become the land owners property
Stolen Property
A thief acquires NO title to goods that are stolen and cannot give good title to anyone else
An innocent purchaser who acquires a stolen item in good faith is…
obliged to return it to the owner
Tortious Bailee
A person who wrongfully keeps stolen or lost property
Bailments
-The transfer of possessions/ control of personal property of one person to another with the intent that the property will be returned later
3 requirements for a bailment
- Personal property
- Delivery of possession without title
- Agreement that the property will be returned to the bailor or disposed of according to the owners directions
3 types of ordinary bailments
- Bailment for the sole benefit of the bailor
- Bailment for the sole benefit of the bailee
- Mutual Benefit Bailment
Bailment for the sole benefit of the bailor
-A gratuitous agreement
Ex. Allen asks Sumi if he can store his car in her garage
Duty of Care owed: slight
Bailment for the sole benefit of the bailee
-Typically occurs when one person lends an item to another person solely for the bailees convenience
-Ex. Allen asks to borrow Sumis boat
Duty of care: Great
Mutual Benefit Bailment
-The most common type
-Involves compensation for both the bailor and bailee
Bailee owes reasonable degree of care
Special Bailments
A business is likely to engage in bailment transactions in which:
- the bailees degree of care is extraordinary
- the bailees liability for loss/damage to the property is absolute
Common Carriers
Publicly licensed to transport goods or passengers on regular routes at set rates
-Strict liability applies- the common carrier us reliable regardless of due care, except in limited circumstances
Hotel Operators
-Operator of a hotel/motel that offers rooms to people
-Strict Liability applies but is avoided if a safe is provided
Leasehold states
-Created when a real property owner agrees to convey the right to possess and use the property to a tenant for a period of time
Lessor
Landlord
Lessee
tenant
The contract between a landlord and tenant
Lease
Tenants own interest in the real estate they lease called..
Tenancy/ leasehold estate
4 types of Tenancies
- Fixed-Term
- Periodic
- Tenancy at Will
- Tenancy at sufferance
Fixed Term Tenancy
AKA: Tenancy for years
-The right to occupy property for an definite period of time
-At the end of the period specified in the lease, the lease ends and possession of the property returns to the lessor
Periodic Tenancy
-Created by lease for an indefinite period with payment of rent at fixed intervals
-One that continues for successive fixed period unless one of the parties terminate the tenancy by giving advance notice
Tenancy at Will
-An interest in real property that continues for an indefinite period of time
-Ex. A landlord allows a person to live on the premises without paying rent for as long as both agree
-No written agreement is required
-Either party can terminate without notice
Tenancy at Sufferance
-Arises when a tenant doesn’t leave the premises after his or her tenancy has expired
-Not entitled to give notice to vacate but is liable to pay rent for the period
Holdover tenant
A wrongdoer that no longer has any legal interest in the property
Lease Agreement
-Provides the tenant with exclusive possession and control of the real property of the landlord
Covenants
Terms in a lease that set forth the rights and duties of the landlord and the tenant
Security Deposit
-To secure the payment of rent or repairs for damages to the property
Provision
-Allowing renters the option to renew the lease for one or more additional periods
-Must notify the lessor on or before the date set forth in the lease
The Landlords Duties
-Maintain the premises
-Deliver peaceful possession
Landlords duties: Maintaining the premises
-Real property for dwelling purposes must be fit for human habitation
-Must be clean, properly heated, furnished with utilities, and safe
-You may withhold rent if not fit
Deliver Peaceful Possession
-Quiet enjoyment is your right to undisturbed possession of the property
Tenants duties
-Abiding by the terms in the lease
-Avoid Waste
Abiding by the terms in the lease
-Pay rent when rent is due
-Observe the valid restrictions contained in the lease
Avoid Waste
-Waste- Substantial damage to premises that significantly decrease the value of the property
-Must return the premises in good conditions or pay for damages
Assignment occurs when…
-you transfer the remaining period of time in a lease to someone else
Sublease occurs when..
You transfer part of the term of a lease but not the remainder of it
-the original tenant is still responsible for rent
Implied covenant of Good Faith and Fair Dealings
- The landlord may not withhold consent to the sublease or assignment or long-term leases to commercial premises without good reason
Eviction
-When a landlord deprives a tenant of the physical possession of the premises
-Can be evicted for not paying rent, remaining after the expiration of the lease, damages to premises, violating provisions
Can a landlord use force to evict?
NO! A court order must be obtained
Constructive Eviction
-When a landlord breaches a duty under the lease
-You may consider the lease terminated, leave the premises, and stop paying rent
When someone is injured on rented property..
Both the tenant and the landlord may be liable
-Whoever is in control of he area where the injury occurs is liable, if the injury is caused by negligence
-Landlord can be liable for injury caused by defects in
common areas
-Tenants can be liable for injury caused by defects in
The portion of the premises in which they have control
