Real and Personal Property

Question 1

Property

Answer 1

Legal rights that a person possesses with respect to a thing; rights that have economic value

Question 2

Real Property

Answer 2

Land, buildings, and other improvements permanently affixed to land

Question 3

Personal Property

Answer 3

Property that is not real property; generally characterized as having substance and being moveable

Transferred by Bill of Sale

Question 4

Fixture

Answer 4

An item that was once personal property but now, because of the nature of its relation to the property, is deemed permanently affixed and thus treated as part of the realty

Threefold test:

1) What was the intention of the annexing party?
2) Is the item physically attached to the realty?
3) Was the item peculiarly adapted to the use being made of the realty?

Question 5

Trade Fixture

Answer 5

An item added to land or buildings by a tenant to be used in the tenant’s trade or business.

A tenant may generally remove trade fixtures but must restore the premises to their original condition and remove the trade fixture before the Lease terminate

Question 6

Secured Transaction

Answer 6

A transaction in which the parties agree that personal property or fixtures will secure a loan or the purchase of an item on credit

Question 7

Attachment

Answer 7

1) The process by which a secured party acquires a security interest in collateral.

Security Interest attaches when:

1) The debtor and secured party (creditor) agree that security interest attaches
2) The secured party (creditor) gives value to the debtor
3) The debtor has or acquires rights in the collateral

Question 8

Perfection

Answer 8

The process by which the secured party establishes priority in the collateral over claims of 3rd parties

Question 9

Fixture Filing

Answer 9

A section of the Uniform Commercial Code that allows a security interest to persist in goods (personal property) that later become fixtures