Real Property Flashcards
A real property owner may offer real property as security for a loan.
What is the written contract called?
The written contract my be a mortgage or trust deed aka deed of trust.
A trust deed used as security for a loan is different from a deed which transfers ownership rights.
When a borrower gives a lender a mortgage or trust deed.
The borrower is HYPOTHECATING the property.
To hypothecate is to pledge a thing as security for a loan without the necessity to give it up!
What is the feudal system?
The interest held on condition of performing services was referred to as a fief,fee or feu.
English common law in Middle Ages.
The allodial system of ownership is what?
Under the alloidial system of ownership, an individual may own the land outright subject only to certain rights held by the government.
This is called a freehold estate would be in the form of a fee (fee simple) which included the right to pass it on.
Or
Life estate which does not include the right of inheritance.
Bundle of rights concept are the
Air rights
Mineral or subsurface rights
Right to lease property to another
Right to devise the property
Right to encumber such as a lender to have a lien
Right to build
Right to let or refuse to let others use it
Bundle of rights is not unlimited. It may be limited by encumbrances that give others rights in the property such as
Private restrictions that limit the uses of the property.
Easements that provide others w/ irrevocable rights to use property
Liens that give others rights to foreclose against the property if owner does not pay a debt owed.
Personal property may be referred as personality or chattels
Chattel is movable article of property. It is not physically attached to land
Personal Property may be tangible, ie: it can be seen or felt or it may be intangible such as contractual rights
Tangible personal property plants, microwave refrigerator etc.
Intangible personal property includes rights in or claims against real estate held by anyone other than the owner of the property.
When real estate is leased. Lessee’s interest under lease is personal property.
Tenant who has ownership rights to annual crops (emblements) he planted or fixtures installed for his business. Emblements and trade fixtures would be personal property if written into lease.
Persons with liens against real property have a personal property interest. The NOTE
given to the lender promising to pay a debt is personal property of lender.
A Bill of Sale is the instrument to conveys title to personal property.
It will contain:
Description of property
State that ownership is transferred
To be signed by the seller.
Personal property maybe hypothecated as security for a loan, pledged w/out actually giving it up
Uniform Commercial Code establishes uniform procedures and documents to be used in personal property transactions
This law provides a document called a security agreement to create a lien of personal property.
The security agreement makes the personal property security for a loan.
