Unit 6

Question 1

Landlord and Tenant

Answer 1

A legal relationship where one party (landlord) owns property and allows another party (tenant) to use it in exchange for rent

Question 2

Lease

Answer 2

A contract between a landlord and tenant that outlines the terms and conditions under which the tenant can occupy the landlords property

Question 3

Types of Tenancy

Answer 3

Various forms of agreements governing the relationship between the landlord and the tenant such as fixed term or periodic leases

Question 4

Fixed term

Answer 4

A lease agreement with a specific startinf and ending date which can range from short term to long term

Question 5

Improvements to leased Property

Answer 5

changes or upgrades to the property which may or may not be done at the option and expense of the owner

Question 5

Periodic Lease

Answer 5

A lease agreement without a set end date often turning into a month to month lease once a fixed term lease expires as long as the landlord continues to accept rent

Question 6

Termination of lease

Answer 6

the process by which a lease contract ends which can occur due to mutual agreement or contract expiration

Question 7

Personal Property

Answer 7

movable items owned by an individual as opposed to real estate. it includes items acquired by purchase, gift, or discovery.

Question 8

Source of Title

Answer 8

The legal basis by which an individual owns a property, which may come from purchase, gift, discovery or lost , abandoned, or mislaid items

Question 9

Lost Property

Answer 9

Personal property found by someone other than the owner. The finder may keep it until the owner comes forward.

Question 10

Abandoned Property

Answer 10

Property that the original owner has intentionally discarded, allowing another person to claim ownership.

Question 11

Mislaid Property

Answer 11

Property that is intentionally placed somewhere by the owner but forgotten. The owner of the premises where the property was found may have a right to it over the individual who discovered it.

Question 12

No Property Theory (Ecclesiastical)

Answer 12

A historical theory where the dead human body was under the exclusive control of the church, and no individual had property rights in the body.

Question 13

Property Theory

Answer 13

The legal concept that recognizes a bundle of rights in an object, granting individuals ownership and control over it.

Question 13

Quasi - Property Theory

Answer 13

The current legal theory regarding the status of a dead human body, recognizing certain rights to the body for the purpose of disposition, as if it were property.

Question 14

Insured

Answer 14

person protected against the loss

Question 14

Beneficiary

Answer 14

person who receives the proceeds of life insurance

Question 14

Underwriter

Answer 14

company writing insurance

Question 15

Policy

Answer 15

written contract of insurance

Question 16

Premium

Answer 16

consideration paid by the insured

Question 17

Face

Answer 17

the maximum the insurer pays for a loss

Question 18

Risk or Peril

Answer 18

the danger of the loss or, or injury to, property, life, or anything else

Question 18

Rider

Answer 18

addition to the insurance policy that modifies, extends, or limits the base contract.
must be clearly incorporated in, attached to, or referred to in the policy

Question 19

Binder

Answer 19

temporary contract of insurance until the company investigates the risk and issues a formal policy

Question 20

Insurable intrest

Answer 20

the policyholder has an interest in the nonoccurrence of the risk insured against, usually because there would be financial loss

Question 21

Insurable Contract

Answer 21

A contract in which an insurer agrees to compensate or indemnify the insured against a specific loss in exchange for premium payments.

Question 22

Laws governing insurance contracts

Answer 22

General contract laws apply to insurance contracts, but specific laws govern concealment, representation, warranties, subrogation, and estoppel.

Question 23

Concealment

Answer 23

When the insured willfully fails to disclose pertinent information to the insurer. To void the contract, the concealed information must be material and affect the insurer’s decision to insure or set the premium rate.

Question 24

Representation

Answer 24

A misstatement of a material fact by the insured, either orally or in writing, before the insurance contract is finalized. If significant, the insurer may void the contract.

Question 25

Warranty

Answer 25

A statement or promise made by the insured that is related to the risk and included in the insurance contract or another document incorporated into it.

Question 26

Subrogation

Answer 26

The right of the insurer to assume the legal rights of the insured in certain circumstances, such as seeking reimbursement from a third party responsible for the insured’s loss.

Question 27

Estoppel

Answer 27

A legal principle preventing a party from denying or going back on a previous assertion or promise when another party has relied on that assertion and would be harmed by its reversal.

Question 28

Types of Insurance

Answer 28

Common types include life insurance, property insurance, and automobile insurance.

Question 29

Real property

Answer 29

Land and objects that are permanently attached to the land, such as buildings.

Question 30

Fee simple estate

Answer 30

The highest level of property ownership, providing full ownership rights and passing the estate to heirs upon the owner’s death, subject to legal and private restrictions.

Question 31

Life Estate

Answer 31

Ownership of property for the duration of a person’s lifetime. Once that person passes away, ownership transfers according to the terms of the estate.

Question 32

Transfer of real property

Answer 32

The process of transferring ownership of real property through documents like deeds or titles.

Question 32

Deeds

Answer 32

Written documents used to transfer title to real property.

Question 33

Title

Answer 33

A legal document that serves as evidence of property ownership.

Question 34

Abstract of Title

Answer 34

A brief history of ownership for a piece of property, summarizing previous owners, dates of sale, and any potential conflicting claims.

Question 35

Mortgage Contract

Answer 35

A contract where the borrower uses real property as collateral for a loan, with the lender holding a legal claim on the property until the loan is repaid.

Question 36

Deed of Trust

Answer 36

A deed transferring property to a trustee to hold for the benefit of a creditor, commonly used in real estate transactions.

Question 37

Joint Tenancy

Answer 37

A form of property ownership by two or more parties with equal rights. Upon the death of one party, ownership passes to the surviving owner(s).

Question 38

Tenancy in Common

Answer 38

A form of property ownership where two or more parties possess the property at the same time, but each party can transfer their ownership interest independently.

Question 39

Tenancy by the Entirety

Answer 39

A form of joint ownership available only to married couples. Upon the death of one spouse, the surviving spouse automatically becomes the sole owner of the property.