BLAW Exam #2 Chapter 8

Classifications of property
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Terms in this set (25)
Classifications of property
Real Property, Personal Property, Tangible Property, Intangible Property, Fixtures
Real Property
1. Land and all things permanently attached thereto
2. Surface, subsurface and air space rights
3. Ex. Land and buildings built thereon and other improvements thereto
4. Method of transfer of ownership - by a deed
5. Method of securing a loan - by a Deed of Trust (Promissory Note)
6. Place where security instrument is recorded - at the office of the country register of deeds
Personal Property
1. All property that is moveable and not real property
2. Ex. Home and appliances that are not physically attached to the property, such as washer, dryer, refrigerator; lawn mower
3. Method of transfer of ownership - by a Bill of Sale
4. Method of securing a loan - by a financing statement and security agreement (with a promissory note)
5. Place where security instrument is recorded - at the office of the Secretary of state UCC Division
6. Why important - (unlike fixtures) personal property items are NOT included in the sale of land unless specifically INCLUDED by the terms of the purchase agreement
Tangible Property
1. Personal property which is visible and has physical existence
Ex. Land, buildings, vehicles, home and office furnishings, livestock etc.
Intangible property
1. Personal property that possesses value, but is not visible
2. The value and record of this property is generally recorded on a piece of paper, which is given rights recognized in law
Ex. Checks, stocks, bonds, annuities, promissory notes, retirement accounts, copyrights, etc.
Fixtures
1. Permanently attached or fixed in a way that is difficult to remove
2. Personal property so closely associated with real property to which it is attached that the law views it as real property. Parties can determine the status in a purchase agreement for sale of real estate of a commercial lease agreement
Ex. Home appliances which are installed to the home, doors, plumbing and light fixtures, ceiling fans, carpeting which is installed, garbage disposal, etc.
3. Fixtures are included in the sale of land unless specifically excluded by the terms of the purchase agreement
Types of Co-Ownership (Concurrent Ownership)
1. Joint Tenancy
2. Tenancy in Common
Joint Tenancy
1. Form of co-ownership of property in which two or more persons have an EQUAL undivided fractional interest in the property
2. Why important - upon death, the deceased person's interest passes automatically by law to the other joint tenant or equally among all other joint tenants, if more than one (not to legal heirs/beneficiaries)
Tenancy in Common
1. Form of co-ownership of property in which two or more persons have EQUAL or UNEQUAL undivided fractional interest in the property
2. Why important - upon death, the deceased person's interest passes to his of her legal heirs or the beneficiaries of his or her estate under a Will.
Real Property Owership
1. Air and Subsurface rights
2. Estates in land
3. Methods for transfer of ownership interests in Real Estate
Air and Subsurface rightsThe owner of land has rights to the surface, subsurface (minerals, oil and gas, water, etc.) and airspace (for skywalks, high rise buildings, but not for restricting legal flights or airplanes)Estates in landOwnership interests in real property Rights of ownership in real property are called "estates" and are classified according to their nature, interest, and extent"Freehold Estates"Definition: an estate for life or in fee ownership. "Fee simple absolute." The largest and most complete estate of ownership rights available in law for real estate. Subject to public restrictions (gov't "zoning ordinances") and private restrictions ("protective or restrictive covenants")Methods for transfer of ownership interests in Real EstateTransfer by inheritance or Will, Eminent Domain, Adverse possession, conveyance by deed, recording statutes, non-possessory interestsTransfer by inheritance or Willby state intestacy law, by last will and testamentEminent Domain (Condemnation)State laws which allow gov't, under the police powers, to condemn land (title, leasehold or easement interests) for public use. "Just compensation" must be paid to the landowner.Adverse Possession1. Title to land may be obtained by another person who possess land for 10 years, in a hostile, open, continuous, exclusive, adverse, and notorious manner 2. The 10 years can be "tacked" together by successive owners 3. Title is only obtained after a court order is entered under a "quiet title" legal actionHOCEANHostile Open Continuous Exclusive Adverse NotoriousConveyance by DeedA deed is a written instrument that authorizes the transfer of real estate interests from the current owner (grantor) to another person (grantee)General Warranty Deed1. Provides a guarantee of title against most title defects 2. Grantor guarantees title against defects caused by grantor and all former ownersQuitclaim DeedTransfers whatever interest the person may own - grantor offers no guarantee to the granteeRecording statutes1. State statutes define a single, public place for persons to record instruments affecting title to real estate (register of deed's office in Nebraska) 2. Provides constructive notice of all recorded documents 3. Determines priority of liens among lien-holders based upon equitable principle of "first in time, first in right"Non-possessory interests1. Easement 2. LicenseEasement1. Generally, a permanent "perpetual" right of a person to use another person's property for a specific use - "runs with the land" from owner to owner 2. Can be created in a Deed, Will, Agreement or by lawLiscenseA revocable right to use another's property for a specific use