REG 17 - Property Law & Intellectual Property Rights Flashcards
Property is classified in what two categories?
Real Property - land & permanent attachements to land such as buildings.
Personal Property - All other property
- Tangible Property - is movable such as furniture, equipment, & automobiles
- Intangible Assets - such as patents, receivables, stock or royalty rights.
Fixture (3)
Personal property attached (affixed) to real property that may be classified as real or personal property depending on:
- How it is used?
- Intention of the parties?
- How it is attached?
- NOT based on price or depreciaiton.
Example: Cementing a chalkboard to a wall
Ownership of Personal Property (7)
Ownership in Personal Property may be aquired in numerous ways:
- By purchase
- Talking Posession (like capturing an animal)
- Production
- Gift
- Inheritance or through a will
- Accession
- Confusion (when identical goods are commingled)
Rules to finding Personal Property? (3)
(mislad, lost, abandoned)
A party finding personal property may take title to it depending on the circumstances:
- Mislaid - finder does not obtain title, but becomes a care taker of the property
- Lost - finder takes title of the property that is effective against anyone but the true owner of the property
- Abandoned - finder takes title to it that is effective against all parties including the original owner
Deed
(to be effective 5 req’s)
Transferring the ownership of real estate is accomplished through the use of a document of title know as a deed. To be effective the deed must include:
- Names of Grantor & Grantee
- Intent to transfer
- Description of the property
- Grantor’s signature
- NOT price or depreciable life (to be included in deed)
- Need NOT be recorded to be effective between Grantor & Grantee
- The deed must be delivered to the purchaser
What are the three types of Deeds?
Quitclaim Deed - (“as is”) a document in which the signer is relinquishing any rights they may have in a property without providing any assurance as to what rights, if any, they do have.
- Examples: Inheritance or gifts
Grant Deed - (Bargain & Sale Deed or Special Warranty Deed) - Guarantee that no problems were created during the time the seller owned the property.
Warranty Deed (General Warranty Deed) - Guarantee that there are no problems at all with the ownership rights.
Recording Statutes for Deeds/Mortgage
(Notice-race)
TESTED
- Establishes priority among different deeds & mortgages
-
Notice-race - Earlier deed/mortgage has priority if either
- Earlier deed/mortgage is recorded first OR
- Later person knew about the claim of the earlier person.
- Example: Deed/Mortgage of #2 must be unaware & have recorded the deeded/mortgage prior to #1 to have priority.
Interest in Real Property (4)
Interest in Real Property - any claim in, to or on real property, including title, security or lease. Types of present interes:
- Fee Simple Absolute - is outright ownership
- Fee Simple Defeasible - is outright ownership upon the achievement of a condition or the occurence of an event
- Life Interest - is a claim to the property for the life of the holder or some other party
- Leasehold Interest - which gives a lessee rights to the property during the term of the lease
Mortgage
(to be effective 3 req’s)
Mortage - A security interest in real property (to be effective):
- Written
- Include a Description
- Signed by the Mortgagor & delivered to mortgagee
- Same rules as for deeds…Notice-race
- Upon default by the mortgagor, the mortgagee may Forclose on the property
Adverse Possession (4)
(of Real Property)
Adverse Possession - A possessor of land who is not the lawful owner may acquire title if he/she holds it for the statutory period, which varies by state.
- Open possession - the lawful owner is deemed to have reasonable notice.
- Hostile possession - the possessor must indicate intention of ownership.
- Actual possession - possession consistent with normal use (cultivation of farm land, use of a warehouse, etc.)
- Countinuous & Exclusive possession
Leased Property (2)
In a lease, the lessee obtains the rights identified in the contract to use the property for a certain period of time. Unless specifically & individually prohibited, the lessee also has the right to:
- Assign - transfers all the rights & liabilities, assignee is liable to overall lessor.
- Sublet - this is a separate contract made by the lessee to transfer a portion of the rights to a sub-lessee for a payment to the lease. Sublessee is not liable to the overall lessor.
A residential lease agreement must contain? (4)
A residential lease agreement must contain the following:
- The parties involved
- Lease payment amount
- Lease term
- Description of the leased property
What are the three different forms of Concurrent Ownership?
Property can be concurrently owned by more than one person. Different forms of concurrent ownership available in all states are:
- Tenancy in Common (TIC) (“no right of survivorship”)
- Joint Tenancy (“right of survivorship”)
- Tenancy by the Entirely
Concurrent Ownership in Property
Tenancy in Common
Tenancy in Common - Each co-owner has a separate interest & others not affected by transfer during lifetime or death.
- Interest can be different percentages of the property.
- Upon death of one of the co-owners, their interest will be distributed to their beneficiaries based on their will. (or estate)
- Each person may transfer their interest without the consent of others & with no impact on the rights of others.
Concurrent Ownership in Property
Joint Tenancy
(TESTED)
A joint tenancy is a more restrictive arrangement that includes a right of survivorship, & the following applies:
- Interest must be equal as to the Time, Title, Interest & Possession (TTIP)
- Upon death of one of the co-owners, their interest will be automatically transferred to the other joint tenants in equal shares, regardless of the provisions of any will of the decedent. (also known as “right of survivorship”)
- Each person may transfer their interest without the consent of others, but the right of survivorship will no longer apply between the transferee & other joint owners. - TESTED
- The transferee becomes Tenant in Common with the other parties, while other partners still have Joint Tenancy.
