SOX/Transfer and Control of Real & Personal Property

Question 1

What is real property?

Answer 1

Land and interests in land

Question 2

What are the two components of ownership?

Answer 2

Management control and property rights

Question 3

What are rights associated with property ownership?

Answer 3

• Use and enjoy

- Transfer during life and death

Question 4

What kind of property is subject to eminent domain?

Answer 4

Real property

Question 5

Which is easier to transfer, personal property or real property?

Answer 5

Personal property

Question 6

What are the components to a gift?

Answer 6

1) Intent to give
2) Acceptance of gift
3) Delivery
- must then be classified

Question 7

In WI, what happens to your property if you don’t have a will

Answer 7

Your property goes to your parents or your kids if you have them

Question 8

What is accession?

Answer 8

The property owner’s right to any increase in such property. Ex: If you improve your apartment, your landlord owns those improvements

Question 9

What is the bottom line to losing property?

Answer 9

If you lose your property, you have a problem. Identify your property

Question 10

What is joint tenancy?

Answer 10

Owning property with another person and they get it if you die

Question 11

What is Tenancy in common?

Answer 11

You can pick who to transfer your property to

Question 12

What is Tenancy by Entireties?

Answer 12

Shared ownership of property, available to married couples

Question 13

What is Marital Property?

Answer 13

In WI, couples share property

Question 14

What is the difference between a cooperative and a condominium?

Answer 14

If it’s a condo, you buy the specific unit.
In a cooperative, you’re buying the right to live there, and you control your neighbors.
NYC is #1 city for coops

Question 15

What is a marketable title?

Answer 15

A title saying that the property is free and clear from any defects or encumbrances, so the buyer can, in turn, sell it

Question 16

What are easements?

Answer 16

Utilities, shared driveway, things that come with property

Question 17

What is the point of title insurance?

Answer 17

Both the seller and an insurance company say you own the house

Question 18

What is a quitclaim?

Answer 18

The seller transfers whatever interest she has in the property and sells it “as-is”

Question 19

What are the 4 requirements for a deed?

Answer 19

1) Must be written
2) Contain certain words of conveyance and a description of the property
3) End with signature of the grantor, a seal, and an acknowledgement before a notary public
4) Be delivered

Question 20

What is the purpose of Deed Recordation?

Answer 20

Shows to 3rd partis who owns the property

Question 21

Who has a right to your property in a mortgage?

Answer 21

The lender has a right to your property because they loaned you the $$ to buy it

Question 22

Who is the mortgage an asset to?

Answer 22

The lender

Question 23

What does it mean to take property subject to a mortgage?

Answer 23

You take the property subject to debt, but you are NOT personally liable for the debt (however, you still have to pay it)

Question 24

What is adverse possession?

Answer 24

When you sit on somebody’s property for so long, it’s yours (about 15 years)

Question 25

What is zoning? Who does not have it?

Answer 25

• principal method of public control over private land use; involves regulation of land but may not constitute a taking of the property
• All cities have zoning except Houston

Question 26

What is a variance in relation to zoning?

Answer 26

You get a variance if you need a break from the current regulation. For example, if all the garages are one stall, but you need two stalls, you obtain a variance

Question 27

What is nonconforming use?

Answer 27

You can continue to use your property in the same way after it is deemed nonconforming, but once it is sold, the buyer may not use it in the nonconforming manner

Question 28

What are the four parts to private restrictions?

Answer 28

1) Nature
2) Type
3) Termination
4) Validity

Question 29

Why was SOX passed?

Answer 29

To remedy Enron situations

Question 30

What are the elements to SOX?

Answer 30

• increase in regulation of accounting firms (they need to be more independent)
  2) Made CEO + CFO sign docs saying financial statements are correct
  3) created oversight board (PCAOB)
  4) improved and strengthened role of audit committee
  5) increased penalties for security violations