40 terms

Business Law CH14

Business law @ BSU Spring 2012
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freehold estate
an ownership interest lasting at least for one's life
fee simple absolute
the most complete ownership of real property
grantor
the person who is conveying (giving up) an interest in real property
fee simple determinable
A fee simple ownership that may be lost if the property is used in certain ways
life estate
A type of ownership that lasts only for the life of the owner and cannot be extended
future interest
a legal right in real property, which will or may become full ownership in the future
nonfreehold estate
a legal right to posession, but not ownership of real property, such as a lease
periodic tenancy
A tenancy lasting for a certain time
tenancy in common
Ownership of property by two or more persons. Each can sell his or her share or leave to heirs. Shares do not have to be equal.
joint tenancy
Ownership of property by two or more persons. When one dies, his or her share is automatically distributed to the co-owners who survive. Joint tenants cannot leave their share to their heirs. Shares must be equal.
tenancy by the entireties
A type of joint tenancy for married couples
community property
A type of property ownership for marrried couples recognized in nine states.
deed
A written document used to transfer ownership into real property
warranty deed
a deed that warrants that the buyer is receiving a good, clear title to the property
quickclaim deed
a deed that merely conveys what ownership the grantor has without any warranties
adverse possession
One person obtains title to real property by actually posessing a portion of the property for a number of years without the permission of the owner.
security interest
The legal interest in property owned by another that allows a creditor to reposess and resell collateral and to apply the proceeds to pay off the owners loan
mortgage
an agreement to give a lender a legal right in real property owned by another person
foreclosure
the process by which the holder of the mortgage exercises that legal right to force the sale of the property
redemption period
a period of time during which a foreclosed owner can re-acquire the property
recording
Filing a deed or mortgage in a public records office to give notice to others of the legal interests in the real properties
nuisance
A common law theory that allows one owner a right to sue a neighbor if that persons use of his or her land interferes with the first owners use and enjoyment of his or her property
zoning
A plan developed by a city or county that regulates the uses of land in different "zones" of the city or county
variance
permission form a zoning board to use land in a way not allowed by the zoning classifications
eminent domian
the power of a state, local, or federal government agency to acquire ownership of property from a private owner for some "public use" after paying fair compensation
taking
when some government action deprives an owner of significant property rights without compensation
restrictive covenant
A restriction on the use of real property, contained in a deed. Such covenants are common in subdivision developments
easement
A legal right to use a portion of real property owned by someone else for a specific purpose
prescriptive easement
An easement upon another's real property acquired by continued use without permission of the owner for a period provided by state law to establish the easement.
tangible property
Property, other than real estate, that has a phycial existence.
gift
the transfer of ownership of personal property. It requires: (1) intent and (2) delivery.
will
a document that states how a person wishes his or her property distributed after death.
codicil
an amendment to an existing will
executor
the person named in the willto carry out the decedents requests and pay bills and expenses
intestate
when a person dies without leaving a will, the property is deistributed according to state law.
bailor
The owner who parts with his/her property, An individual who retains the ownership of property that has been taken into the care, custody, and/or control of a bailee. Example: the owner of the clothing to be cleaned, the jewelry to be repaired, or the fur to be stored.
bailee
the person or business holding the property, A person one who has care, custody or control of another's property, usually for repair, cleaning, processing storage or service.
gratuitous bailment
Property transferred to another person without either party giving or asking for payment. for example, when one lends a car to another person.
mutual benefit
-Bailee renders a service
-Charges for the service
-Bailee must exercise "reasonable care under the circumstances"
trust
a legal mechanism by which one person transfers ownership of proprty to a trustee, who holds, uses, or invests the porperty for the benefit for another person (the beneficiary)