ACCT 324 finaal

ACCT 324 final

What is the ownership concept

Bundle of rights associated with 1. use 2. possesion 3. enjoyment 4. control of property superior to all others

what are classifications of property

Real property - land and anything permaneltyl attached to it (fixtures)

personal property - property not attached to land, or movable property

what are fixtures

a type of real property, that are initially movable but become attached to the land

inter vivos gift and its elements

a gift that is made by a person during his or her lifetime

between two or more living persons

gift is completed by donor to donee during both donor and donee’s lifetime

this gift is irrevocable

Gift causa mortis

a gift that is made in contemplation of one’s immediate death

must have the 3 elements of a gift: delivery, donative intent, and acceptance before the death of the donor

revoked prior to death of donor and automatically revoked if the donor survives the illness

what are the different types of transfers of personal property

voluntary and involuntary transfers

what are voluntary transfers of personal property

sale - buyer (future / new owner) gives value to seller (current / old owner) in exchange for title to property

gift - given from transferor/donor (old/current owner) to transferee/done (new/future owner) without value beign exchanged

what are involuntary transfers of personal property

Abandoned property - property that original owner has discarded

lost property - true owner has unknowingly/accidentally dropped/left somewhere

mislaid property - intentionally placed property somewhere but has forgotten its location

when does the transfer happen for abandoned personal property

new person becomes owner by simply possessing the property

when does transfer happen for person property for lost or mislaid

new person becomes owner after: notice and statutorily defined period of time

what are the elements of a gift

Delivery ( from donor to donee ) - actual delivery, physical presentation of gifted property, constructive delivery, gives access to gifted property through delivery of item related to gifted property but not the gifted property itself

Donative - intent (of donor to make an immediate gift)

acceptance - of property (by donee)

what happens in the case of involuntary transfer of personal property

The finder of lost or mislaid property acquires title to the property against all except the true owner

Fungible goods

goods for which one unit of the good is essentially the same as every other unit, such as grains of wheat or gallons of oil

Bailment ( of personal property)

A relationship that arises when one party ( the bailer) gives possession of personal property to another ( the bailee) with an advance agreement on the time period, the compensation, if any, and the bailee’s treatment of the property.

rights of the bailor

to expect that the bailee take reasonable care of the bailed property, repairing and maintain it as necessary

expect that the bailee use the bailed property only as stipulated in the bailment agreement

expect that the bailee will not alter the bailed property in any unauthorized manner

expect that the bailee will return the bailed property in good condition at the end of the bailment

duties of the bailor

must provide the bailee with any agreed-on compensation for the bailment

must reimburse the bailer for any necessary costs incurred by the bailee during the bailment

rights of the bailee

to possess the bailed property during the term of the bailment

to use the property in a manner consistent with the terms and purpose of the bailment

to receive compensation for the bailment unless the bailment is gratuitous

to retain the bailed property until payment is received

duties of the bailee

must take reasonable care of the bailed property, repairing and maintaining it as necessary

must use the bailed property only as stipulated in the agreement

must not alter the bailed property in any unauthorized manner

must return the bailed property in good condition at the end of the bailment

document of title

a transport document that, when appropriately made out, entitles the bearer to claim the goods from the carrier

Bill of lading

a document issued by a person engaged in the business of transporting goods that verifies receipt of the goods for shipment

warehouse receipt

a receipt issued by one who is engaged in the business of storing goods for compensation

what makes document negotiable

the word “Bearer” or the phrase “to the order of”

Common carrier

A carrier that is licensed to provide transportation services to the public

innkeepers

entities that are regularly in the business of making lodging available to the public

intellectual property

property that is primarily the result of one’s mental rather than physical creativity

Actual gift

voluntary transfer of property where the donor physically delivers the item to the donee with intent to make a gift and no expectation of payment or return.

constructive gift

A gift where the donor does not physically hand over the item itself, but gives something that gives control or access to it (like keys to a car or a safe deposit box).

fungible gift

A gift involving goods that are interchangeable with other goods of the same type and value (like money, stocks, or commodities). Any identical unit can replace another.

conditional gift

A gift given on the condition that a specific event happens or requirement is met. If the condition is not satisfied, the gift may not take effect or may have to be returned.

confusion

A property law doctrine where fungible goods owned by different people become mixed together (e.g., grain, oil). Ownership is then divided proportionally based on original contribution.

Effusion

The spreading or escaping of a substance (usually gas or liquid) from a contained space into the surrounding area. Not typically used as a formal method of acquiring title to property.

diffusion

The natural spreading out of particles or substances from an area of higher concentration to lower concentration. More of a scientific concept than a legal method of acquiring property.

Dilution

A reduction in concentration or value of something. In law, often used in intellectual property (trademark dilution), where a famous mark loses distinctiveness due to unauthorized use.

real property

land and everything permanently attached to it

Fee simple absolute

an ownership interest in which the holder has exclusive rights to ownership and possession of the land to the holder: the most comprehensive type of estate

Conditional estate

an ownership interest in which the holder has the same interest as that in a fee simple absolute except this interest is subject to a condition

life estate

an ownership interest in which the holder has the right to possess the property until his or her death

granted for a lifetime of an invdividual

when does waste occur for a life estate

occurs when the holder of a life estate uses the property in a way that reduces the value of the estate that the future holder will receive: it is unlawful

future interest

a persons present right to property ownership and possession in the future

not currently in possession

leasehold estate

a possessory interest, but not an ownership interest, transferred by contract (lease)

current possession

easement

an irrevocable right to use some part of anothers land for a specific purpose, without taking anything from it

ex - utility easement

profit

the right to go onto someones land and take part of the land or a product of it away from the land

ex - right to harvest timber

easement by prescription

an easement created by state law when certain conditions are met, most frequently by openly using a portion of another’s property for a statutory period of time (usually 25 years)

license

a revocable right to temporarily use another’s property

ex - theater ticket

Co-ownership

a type of ownership in which multiple individuals possess ownership interests in a property

Tenancy in common

equal / unequal shares may be held, creditiors can attach any owners interest, and deceased owners share is transferred to heirs

joint tenants / tenancy

equal shares, creditors can attach any owners interest and deceased owners share reapportioned equally among surviving joint tenants

tenancy by the entirety

equal shares, creditors cannot attach property and deceased owners share passes to surviving spouse

available to married couples only

if divorce becomes a tenancy in common

steps in voluntary transfer of property

can be by sale or gift by requires:

Execution - preparation and signing of deed

delivery - transfer of deed to grantee, with intent of transferring ownership to grantee

acceptance - grantees expression of intent to possess the property

recording - filing a deed with any other related documents such as mortgages with the appropriate county office, to protect interests of grantee

general warranty deed

a deed containing a covenant in which the seller agrees to protect the buyer against being dispossessed because of any averse claim against the land

limited / special warranty deed

a deed which promises only that the seller has not done anything to lessen the value of the estate

quitclaim deed

least desirable

a deed that carries no warranties. the grantor simply conveys whatever interests he or she holds

marketable title

title for property to which the seller has legal title and against which there are no liens or restrictions of which the buyer is not aware

allows the property to be resold in the future

closing

the meeting at which a transfer of title takes place - the seller signs over the deed, and the buyer gives the seller a check for the amount due

adverse possession

an involuntary property transfer in which a person acquires ownership of property by treating a piece of real property as his or her own, without protest or permission from the owner

condemnation

the legal process by which a transfer of property is made against the protest of the property owner

government acquires ownership of private property

restrictive covenant

a promise to use or not to use one’s land in particular ways

Zoning

the process in which government places restrictions on the use of property to allow for the orderly growth and development of a community and to protect the health, safety, and welfare of its citizens

how can you keep personal property when transfer of real property

parties can state in their written agreements that specific items of personal property even thought permanently attached to real property will continue to be treated as personal property. so items will not be transferred

what are trade fixtures

items of personal property that are unique to that business operation that are permanently attached to real property

ex- barber chairs in a barber-shop

what do you actually own when owning real property

airspace above - reasonable height

rights to the water - including the legal ability to use water flowing across or underneath the property

rights to minerals - on or under land

condominium ownership

owner acquires title to a unit within a building with undivided interest in the land, buildings, and improvements of the common areas of the development

cooperative ownership

investor resident acquires stock in the corporation owning a facility and receives a permanent lease on one unit of the facility

real property sales transaction

Negotiation - of a sales contract

Sellers duty to disclose - typically reveals repairs, contaminants

title examination - process of verifying sellers title

Financing - if needed

closing - settlement agent ensures proper execution of all documents

what are the elements for a vaild deed

identification of grantor

expression of grantors intent to convey the property

legally sufficient description of the property ( including physical boundaries and any easements)

any warranties/promises made by grantor with the conveyance

easement by subcription

created when a developer sells lots using a shared plan/map for common use areas

How it happens: State law recognizes it when buyers purchase relying on that plan.
Key idea: “Buy into a planned community = shared rights automatically.”
Example: Subdivision map shows a private road → all buyers can use it.

easement by decription

Definition: Created through a written deed or legal document that clearly describes the easement.
How it happens: Must be written, signed, and delivered.
Key idea: “If it’s clearly written in the deed, it exists.”
Example: “10-foot utility easement along north boundary” in a deed.

easement by prescription

Definition: Created by long-term use of someone else’s land without permission.
How it happens: Must be open, continuous, and adverse for a required time (varies by state).
Key idea: “Using it long enough like you own it can create legal rights.”
Example: Neighbor uses a shortcut across land for 10+ years openly.

easement by circumstance

Definition: Created when property is split and a necessary, obvious use already exists.
How it happens: Automatically implied by law during division of land.
Key idea: “You can’t split land and cut off necessary access.”
Example: Land is divided but one parcel still needs a driveway across the other.

easement by necessity

a piece of property is divided and one portion is landlocked as a result then what is created

what does a landlord tenant relationship require

names of the tenants and landlord

express or implies intent to create a landlord-tenant relationship

description of the property

specific length of the lease

amount of rent to be paid to the landlord

Definite term lease/ term for years

lease that expires at the end of a specified term

periodic tenancy lease

created for a recurring term

month to month

appurtenant

an easement or profit is appurtenant when it runs with land adjacent to the property on which it exists

tenancy at will lease

a lease that may be terminated by the parties at any time

tenancy at sufferance lease

tenant fails to leave property at end of lease

covenant of quiet enjoyment

a promise that a tenant has the right to quietly enjoy the land

landlord won’t bother

actual eviciton

an eviction in which a landlord physically prevents the lessee from entering the leased premises

Full eviction

an eviction in which a landlord physically prevents the lessee from entering the leased premises

partial eviction

an eviction in which a landlord prevents the tenant from entering part of the leased premises

constructive eviction

occurs when a property has become unsuitable for use due to the unlivable quality of the property

implied warranty of habitability

a requirement that the premises be fit for ordinary residential purposes

waste

permanent and substantial injury to a landlords property

alteration

an unauthorized change to an instrument that modifies the obligation of a party to the instrument, a change that affects the condition of the premises

common areas

areas that are used by all tenants

rent

the compensation paid to a landlord for the tenants right to possession and exclusive use of the premises

rent escalation clause

in a lease, a clause that permits the landlord to increase the rent in association with increases in costs of living, property taxes, or the tenants commercial business

landlord’s lien

a court order that allows a landlord, through a sheriff, to seize a tenants personal property as security for unpaid rent

assignment

a contracting party’s (an assignor’s) transer of his or her rights to the contract to a thrid party ( an assignee)

a transfer of a tenants entire interest in a leased property

sublease

a transfer of less than all of a tenants interest in a leased property

breach of condition by landlord

landlord interferes with tenants use and enjoyment of the property

forfeiture

tenant/landlord fails to perform conditions specified in lease

destruction of the premises

some disaster destroyed the subject matter of the lease, most states allow termination of the lease. tenant is released from paying rent

surrender

a mutual agreement between a landlord and a tenant in which the lessee returns his or her interest in the premises to the landlord

abandonment

behavior in which a tenant moves out of a leased premises before the end of the term and discontinues making rent payments

who are the parties in landlord and tenant law

landlord (lessor) - property owner

tenant(lessee) party who assumes temporary possession of property

what is the lease

contractual relationship between landlord and tenant estbalished by an oral or written contract

if exceeds one year must be written

what law controls execution and operation of leases?

generally state law controls most aspects of a lease

what federal laws govern leases

fair houses act - can’t discrimiate

Big 5 - civil rights act and its amendements

what are the rights of landlords

rent, rent escalation clause, landlords lien, actual eviction