AI notes - property law final

Erga Omnes

Latin term referring to the effect of a right against "everyone," characteristic of property rights that distinguishes them from contractual rights limited to the parties involved.

Droite de Suite

Property law principle where a right follows the object, not the individuals, emphasizing the connection between rights and the property itself.

Usufruct

Secondary property right allowing the holder to use and enjoy an object owned by another, including the right to take its fruits, with the obligation to maintain the object's economic purpose.

Bare Ownership

Ownership rights without the rights to use, enjoy, or derive income from the property, often created alongside a right of usufruct.

Quasi-usufruct

Type of usufruct applicable to consumable items, where the usufructuary must return objects of the same quantity and quality or their value at the end of the usufruct.

Use and Habitation

Rights similar to usufruct but more restricted, granting the right to use immovable objects for specific purposes like living in a building.

Servitude

Legal right allowing one property owner to grant another specific limited use of their land, creating a property right that binds the ownership of the land.

Security Rights

Interests securing the performance of an obligation, ensuring creditors are treated equally in insolvency proceedings based on the paritas creditorum rule.

Pari Passu

Latin term meaning "on equal footing," referring to the equal treatment of creditors in insolvency proceedings, ensuring proportional payment distribution.

Personal Security Interest

A creditor can exercise his claim not only on the assets belonging to his debtor, but also on the assets belonging to his debtor, but also on assets which belong to the provider of the personal security (e.g. a guarantor)

Personal Security Interest

A creditor can exercise a claim not only on the debtor's assets but also on assets belonging to the provider of personal security, like a guarantor.

Triangular Relation

In personal security, there is a triangular relation involving the debtor, creditor, and guarantor.

Property Security Interest

Property security grants a priority right to secured creditors, allowing them to be paid out of the proceeds of the asset before other creditors.

Pledge

A pledge is a property security right over movable assets, granting the pledgee a right to be paid from the proceeds of the forced sale of the pledged asset.

Hypothec

A hypothec is a property security right over immovable assets, allowing the creditor to claim the asset's sale proceeds if the debt is not paid.

Accessory Nature (of property security rights)

Property security rights are accessory to the claim they guarantee, ceasing to exist once the principal obligation is fulfilled.

Prohibition of Unjustified Enrichment

A security right exists solely for the payment of the secured claim, ensuring the creditor cannot be in a better position than if the claim was paid in due course.

Property Security Right

A legal right that allows a creditor to secure a debt with the debtor's property without transferring ownership of the property.

Hypothec

A property security right where the debtor retains ownership of the property but it is burdened by a security right in favor of the creditor.

Pledge

A property security right requiring the transfer of possession of an object to the creditor as security for a debt.

Possessory Pledge

A type of pledge where the debtor transfers possession of the pledged object to the creditor.

Non-Possessory Pledge or Charge

A property security right that does not require the creditor to take possession of the charged asset.

Pacta Commissoria

An agreement where the creditor automatically becomes the owner of the pledged property upon the debtor's default without judicial authorization.

Fixed Charge

A security interest granted over specific assets of a debtor to secure a loan or financial obligation.

Floating Charge

A security right covering present and future assets of a debtor, becoming a fixed charge upon a specified event.

Retention of Title

A contractual clause where the seller retains ownership of goods until the buyer pays the full price.

Res Perit Domino

A legal principle meaning "the thing is lost to its owner," indicating that the owner bears the risk of loss or destruction of the property.

Title Retention Clause

A contractual provision where the seller retains ownership of goods until the buyer fulfills payment obligations, allowing the seller to reclaim goods if payment is not made.

Transformation

Concerns the scenario where goods are transformed or used to create new products, potentially leading to the creation of new ownership rights and the need to cover such situations through contracts.

Transfer of Ownership for Security Purposes

Involves a debtor transferring ownership of assets to a creditor as security, with the obligation to return ownership upon full discharge of the secured claim.

Right of Retention

A legal right allowing a party to withhold possession of property until a debt or obligation is satisfied, focusing on possession rather than ownership.

Material Connection

Requirement for a legal or material link between a secured claim and the asset withheld in the context of exercising the right of retention.

Lien (Common Law)

Possessory lien grants the creditor the right to retain possession of property until a debt is paid, without requiring publicity or property security rights.

English Mortgage

Transaction where the mortgagor transfers full title to the creditor, who becomes the owner subject to redemption rights, distinct from a charge granting limited property rights.

Hypothec

Limited property right in immovables allowing the creditor to be paid from proceeds of a forced sale, common in civil law systems but not involving a transfer of ownership like a mortgage.

Hypothec

A security interest traditionally restricted to immovable objects or registered goods, not requiring dispossession of the hypothecor, and not to be confused with a pledge.

Pledge

A security interest with a movable object as its subject matter, requiring dispossession of the pledgor.

Charge

A transfer of something for security purposes that can affect both movable and immovable property, with no transfer of possession.

Immovable

The subject matter of a hypothec must be a specific immovable, although some legal systems may consider registered goods as well.

Formal nature of a hypothec

An agreement to create a right of hypothec is a formal agreement, often requiring a written document or notarial deed.

Accessory nature of a hypothec

A right of hypothec is accessory to the secured claim, extinguishing or transferring with the claim.

Priority Ranking (hypothec)

The order in which creditors are paid from the proceeds of the sale of a debtor's secured property, typically determined by the registration date.

Realization (hypothec)

The enforcement of a security interest granted by a hypothec when a debtor defaults on their obligations, often through foreclosure.

Unfair Contract Terms Directive

Directive protecting consumers against unfair standard terms imposed by traders in various contracts, ensuring fairness and balance in contractual relationships.

Consumer

Any natural person who, in contracts covered by this Directive, is acting for purposes outside their trade, business, or profession.

Seller or Supplier

Any natural or legal person who, in contracts covered by this Directive, is acting for purposes relating to their trade, business, or profession.

Unfair Term

A contractual term not individually negotiated that, contrary to good faith, causes a significant imbalance in the parties' rights and obligations to the detriment of the consumer.

Plain, Intelligible Language

Terms in contracts must be drafted clearly and understandably; in case of doubt, the interpretation most favorable to the consumer prevails.

Creditworthiness Analysis

Before concluding a credit agreement, the creditor must thoroughly assess the consumer's ability to meet obligations under the agreement.

Adequate Explanations

Creditors must provide clear explanations to consumers on proposed credit agreements and ancillary services to enable consumers to assess their suitability.

Land Register Folio

A document for each parcel of land in the land register, containing the title, inventory, and divisions with ownership and transaction details.

Principle of Party Initiative

The land registry requires an application from a party with an interest in the property to initiate any entry or change in the register.

Authorization Principle

Entries in the land register are executed only if authorized by the person whose right is directly affected by the entry to prevent unauthorized changes.

Sequency Principle

Entries in the land register are made in a sequential manner, reflecting the legal sequence of events to maintain a clear order in the registration process.

Priority Principle

The order of priority among rights on a parcel is determined by the timing of the application for each entry in the land registry.

Publicity of the Land Register

The land register is open to the public, allowing everyone to inspect it in the presence of an officer and make copies or extracts.

Registrable Rights and Interests

The land register includes property rights to land, relative restrictions, priority notices, and pre-emption rights, but not contracts or movables.

Effects of Registration

Registration in the land register has constitutive effects on property rights between parties and establishes a public faith principle for third-party rights.

Priority Notice

In German law, a priority notice secures the right to acquire a property right, requiring authorization and registration in the land register.