Real Property; Personal Property - mod 10 Flashcards
1
Q
Property
A
- property is best described as a relationship between people with respect to things
- property is either real property or personal property
- not absolute
2
Q
Real property - simple definition
A
- Real property is land and anything permanently attached to the land (including buildings, and anything attached to the buildings)
- ex. Toilet
- Real property is fixed and not moveable
3
Q
Personal property
A
- personal property is property that is not real property
- personal property is either tangible (it can be touched and seen, such as cars or furniture) or it is intangible (it cannot be touched or seen, such as accounts receivable and intellectual property)
4
Q
Fixtures
A
- goods that are attached to real property
- begin as personal property but when attached to real property they become real property
- ask two questions: was the attachment intended to be permanent or temporary? And how much damage would be caused if it was removed?
5
Q
Three types of possessors interests in land (they confer the right to posses the land)
A
- fee simple
- life estate
- leasehold estate
5
Q
Two rights in real property
A
- Possessory interests in land
2. Non-possessory interests in land
6
Q
a) fee simple (possessory interest)
A
- the greatest private interest that a person can have in real property (not paramount)
- may be defeated by easements, rights of way, adverse possession or government expropriation
- commonly referred to as “ownership” of real property
- if a person owns a house, they enjoy fee simple in that property
7
Q
b) life estate (possessory interest)
A
- a rarely used interest in land which allows a person to live on the land for their lifetime only (after the person dies, the land is transferred to another person)
- used primarily in estate planning where a testator (person making a will) wants to ensure that a person will have the benefit of living on the land for their entire lifetime
8
Q
c) leasehold estate (possessory interest)
A
- interests in real property that are limited to a specific period of time, after which possession of the land reverts back to the owner
- may be residential (e.g. apartments) or commercial (e.g. office space)
- creates by a lease agreement, a contract pursuant to which possession of real property is given in exchange for the payment of money
9
Q
Non-possessory interests in land
A
- easements, rights of way, licenses, restrictive covenants, mortgages
10
Q
Easement (non-possessory interest)
A
- an easement gives a person the right to use a portion of another person’s land, usually for a particular purpose (e.g. the right of Canada post to enter onto property for the purpose of delivering mail or union gas for pipeline)
10
Q
Right of way (non-possessory interest)
A
- a right of way allows a person to cross another person’s land usually to get their own land or to reach another location, such as a beach or body of water (e.g. a shared driveway)
11
Q
Licenses (non-possessory interest)
A
- a license allows a person to use another person’s land for profit (e.g. the right to operate a golf course on municipally owned land)
12
Q
Mortgage (non-possessory interest)
A
- gives the holder (the mortgagee) the right to take possession of and sell the real property, if the debtor (the mortgagor) defaults
- mortgagor = borrower
- mortgagee = the bank
13
Q
Joint tenancy and tenants in common
A
- when two or more people own one parcel of real property, they are either joint tenants or tenants in common
14
Q
Joint tenants
A
- have an equal share in the real property, and when one joint tenant dies, the other inherits the decreased person’s interest (e.g. Married couple)
15
Q
Tenants in common
A
- do not have an equal share in the real property, and there is no right of survivorship - if one tenant in common dies, their interest goes to their heirs, not the surviving joint tenant (e.g. when people own a property for business purposes, such as an income property)
