Chapter 7: The Property System

Exam 2: Chapter 7 Conceptual Questions

Property rights

Kevin owns a piece of land and has the legal ability to use, sell, lease, or transfer it as he chooses. What legal concept gives him these abilities?

Air rights

Sophia owns a building in the city and has the legal ability to develop upward, allowing her to construct additional floors or sell the space above her property. What type of rights does she have?

Rule of Capture

James drills a well on his property, and the oil he extracts naturally flows from his neighbor Sarah's land. Since he never physically entered Sarah's property, he is allowed to keep the oil under what legal principle?

Fixtures

John sells his house but removes a built-in chandelier before moving out. The buyer argues that the chandelier was a permanent part of the home and should remain. What legal concept determines whether the chandelier stays?

Fee Simple Absolute

Hassan owns his land with no restrictions, giving him full rights to use, sell, or pass it down. What is the term for this highest form of property ownership?

Fee Simple Defeasible

Anna inherits a piece of land under the condition that it MUST always be used for agricultural purposes. If she ever builds anything non-agricultural, the land will go back to the original owner. What type of ownership does Anna have?

Life Estate

Kayla is granted ownership of a house for the rest of her life, but once she passes away, the property will automatically transfer to her cousin, James. What type of ownership does Kayla have?

Reversion Interest

Bob grants his sister, Julie, a life estate in his property. When Julie passes away, ownership of the property will return to Bob or his heirs. What type of future interest does Bob have?

Remainder Interest

Joseph grants his sister, Lia, a life estate in his property. Upon Lia's death, the property will pass directly to their cousin, Joseph. What type of future interest does Joseph have?

Leasehold Estate

Emma signs a contract to rent an apartment for one year, giving him the right to live there while the landlord retains ownership. What type of estate does Emma have?

Concurrent Ownership

Milo and Olivia buy a house together, and both have equal rights to use and own the property at the same time. What type of ownership do they have?

Joint Tenancy

Fiona and Esther own a house together with equal shares, and if one of them passes away, the other automatically inherits the full ownership of the property. What type of ownership do they have?

Tenancy in Common

Jake and Laura co-own a property, but unlike joint tenancy, if one of them dies, their share will pass to their heirs rather than automatically to the other owner. What type of ownership do they have?

Easement

Sarah's property has a private driveway that her neighbor, Tom, has the legal right to use to access his own land. What legal right allows Tom to use part of Sarah's property without owning it?

Natural Easement

Amy owns land that is completely surrounded by other properties, leaving her without direct road access. The law grants her the right to cross a neighboring property to reach a public road. What type of easement does she have?

Negative Easement

Isaac owns a property next to a scenic lake, and his neighbor, Lisa, is legally prevented from building a tall structure that would block Isaac's view. What type of easement restricts Lisa from taking this action?

Easement by Prescription

For over 20 years, Alex has been openly and boldly crossing his neighbor's land without permission, using a footpath that was never granted to him. Despite this, he continues to use the path continuously without interruption. Although his neighbor also has the right to use the land, Alex eventually gains a legal right to keep using the path. What type of easement has Alex acquired?

Mutually-Beneficial Bailment

Lisa takes her car to a repair shop, where the mechanic agrees to fix it in exchange for payment. Lisa benefits by getting her car repaired, and the mechanic benefits by earning money for the service. What type of bailment is this?

Sole benefit of the Bailor

Olivia asks her neighbor, Jake, to store her antique furniture in his garage for free while she moves. Jake receives no compensation and is only doing Olivia a favor. What type of bailment is this?

Sole Benefit of the Bailee

Michael borrows his friend Sarah's bicycle for the weekend at no cost. Sarah is not receiving any benefit, but Michael gets to use the bike for free. What type of bailment is this?

Bailee

David leaves his watch at a jewelry store for repairs. When he returns to pick it up, the watch is missing. The store claims it is not responsible for the loss. In a bailment situation, who must prove whether the store exercised reasonable care?

Exchange

Emma trades her motorcycle to Jack for his boat. Both parties willingly transfer ownership of their property to each other. What method of property acquisition is this?

Possession

Sophia finds an abandoned laptop in a public park. Since no one claims it and she takes control of it, she may acquire ownership through what method of property acquisition?

Abandoned Property

Victor finds an old bicycle left in an alley with a sign that says "Free—Take It." The original owner has clearly given up ownership with no intention of reclaiming it. What type of property has Victor acquired?

Lost Property

Mia finds a wallet on the sidewalk with no identifying information. The owner likely dropped it unintentionally and does not know where it is. What type of property has Mia found?

Mislaid Property

Daniel finds a phone left on a table in a café. It appears the owner placed it there intentionally but forgot to take it when leaving. What type of property has Daniel found?

Adverse Possession

For 20 years, Rachel has lived on a piece of land that legally belongs to someone else. She has openly used the land as her own, without permission, and continuously maintained it. Over time, she gains legal ownership of the property through what principle?

Confusion

A grain storage facility accidentally mixes two farmers' identical wheat supplies. Since the goods are fungible and indistinguishable, the farmers must split the total amount based on their recorded contributions. What legal principle determines how ownership is divided in this situation?

Accession

Xanthi buys raw lumber and uses it to build a handcrafted table, significantly increasing its value through her labor and effort. Since she transformed the materials into a new product, she now owns the finished table under what legal principle?

Gift

Heather gives her friend Joshua a watch for his birthday and hands it to him with the clear intention of transferring ownership. Since Joshua accepts it, what legal principle applies to this transfer of property?

Testamentary Gift

In his will, Robert leaves his house to his daughter, Anna. Since the transfer of ownership will only take place after his death, what type of gift is this?

Title

After purchasing a car, James receives an official document proving he is the legal owner. What is this document called?

Warranty Deed

Phoebe buys a house, and the seller provides a legal document guaranteeing that the property has a clear title with no undisclosed claims. Phoebe can sue the seller if someone else claims the land. This is the what Phoebe wants, because this gives her the MOST protection. What type of deed protects Phoebe with this assurance?

Special/Limited Warranty Deed

David purchases a commercial building, and the seller provides a deed that guarantees there were no title issues only during the time they owned the property, but not before. This does not hold the grantor liable for what happened prior to his or her ownership. What type of deed is this?

Quitclaim Deed

Laura transfers any ownership interest she may have in a property to her brother, Mark, but she makes NO guarantees about the title or whether she actually has any ownership. What type of deed is this?

Unrecorded Deed

Ethan buys a piece of land from Sarah, but he fails to officially record the deed with the county. Later, Sarah fraudulently sells the same land to another buyer who records their deed first. Because Ethan's deed was never recorded, he may lose his claim to ownership. What legal issue does this create?

Security Deed

When purchasing a home, Mia takes out a loan and signs a document that temporarily transfers the title of the property to the lender as collateral. Once she repays the loan, the title is fully returned to her. This is used in Georgia. What type of deed secures the lender's interest in the property?

Deed of Trust

When buying a home, Julie takes out a loan and signs a document that places the property title in the hands of a neutral 3rd party (trustee) until she fully repays the lender. This is NOT recognized in Georgia. What type of deed is used in this arrangement?

Land Sales Contract

Maria agrees to buy a piece of land from David through a contract where she will make payments over time but will only receive the title after the final payment is made. This usually happens with unimproved land or farmland. What type of contract is this?

Recording Statutes

Security Deeds and Deeds of Trust must be recorded in the county where the land is located to provide notice to potential buyers and lenders. If a security deed is not recorded, a new buyer can purchase the property free and clear because there is no public record of the existing loan. What legal principle governs this process?

Foreclosure

After failing to make mortgage payments for several months, Lisa receives notice that the lender will seize and sell her home to recover the unpaid debt. What legal process allows the lender to take this action?

Deficiency

After John's home is foreclosed and sold at auction, the sale price is less than the amount he still owed on his mortgage. The lender demands that John pay the remaining balance. What is the remaining debt called?

Right of Redemption

After losing his home to foreclosure, Mark has a limited time to repay the debt in full and reclaim his property before the sale is finalized. What legal right allows him to do this?

Artisan's Lien

Jake takes his car to a mechanic for repairs but fails to pay for the work. The mechanic refuses to return the car until Jake pays the outstanding bill. "I am keeping your PERSONAL property until you pay me off." This is possessory. What type of lien allows the mechanic to keep possession of the car until payment is made?

Mechanic's Lien

A contractor renovates Sarah's kitchen, but she refuses to pay for the completed work. The contractor files a legal claim against her REAL property to ensure payment for the labor and materials used. This is NOT possessory. What type of lien is this?

Public Nuisance

A factory releases toxic fumes into the air, affecting the health and safety of an entire neighborhood. Since the harm inconveniences the general public rather than just one individual, what legal doctrine applies? (Think about the explosion from the Biochem lab department)

Private Nuisance

Coraline's neighbor plays extremely loud music every night, preventing Coraline from sleeping and enjoying her property. Since this issue affects only Coraline and not the general public, what legal doctrine applies?

Zoning Laws

Rita wants to open a factory on her newly purchased land, but the city denies her request because the area is designated for residential use only. What legal regulation is restricting her land use?

Zoning Limits

David buys a plot of land and plans to build a high-rise apartment complex. However, the city restricts his construction because the area is zoned for single-family homes only. Additionally, the city enforces rules on building height, size, and design to maintain the neighborhood's appearance. What legal regulation is controlling these restrictions?

Variance

Jessica wants to build a small café in a neighborhood that is zoned strictly for residential use. She applies for special permission to bypass the zoning ordinance. If approved, what legal exception allows her to proceed with the construction?

Taxation

The government funds essential services such as public roads, education, law enforcement, and the judicial system by collecting revenue from individuals and businesses. This system is based on the idea that private property is limited by the common good and that Congress has the constitutional authority to impose these charges. What legal principle allows the government to collect this revenue?