Chapter 6- Examining Property Law

types of intellectual property protections

- copyright -trademark -patent -trade secret

possessory lien

A bailee's right to retain possession of a bailor's property as security for the payment of a debt or performance of some other act.

joint tenancy

A concurrently owned and undivided interest in an estate that transfers to a surviving joint tenant upon the death of the other.

WDYK? Jessica owns a parking lot near an airport. Most of her revenue comes from travelers who park their car on her lot while they travel, returning days later to claim their cars. Does Jessica have an insurable interest in the cars left on her lot for which she should buy insurance coverage?

Feedback: Because a bailee ( in this case, Jessica) has a legal duty to care for the goods in his or her possession and to return them to the bailor ( in this case, each of the car owners), Jessica has an insurable interest in the cars on her lot and can obtain insurance to protect that interest

-WDYK? Maren owns three adjacent homes in a suburban town in Idaho. There are investment properties for her, but she contracts to sell one home to Zed. They have an oral discussion negotiating the price, and when they agree, Maren handwrites a note that she agrees to sell "the property at 721 Providence Rd in Coeur d'Alene" to Zed for the agreed price at $350K. The note does not include the acreage, lot number or square footage of the home. Maren and Zed both sign and date the note. Is this valid contract of sale?

Feedback: for any sale of real property, two elements must be present- the contract must be in writing and signed by the parties to be bound by the contract, and essential terms must be included. These terms include a description of the premises being sold and the price. This note appears to meet that standard.

community property

Property owned or acquired by both spouses during a marriage by their communal efforts. Each spouse has an undivided one-half interest in the community property.

intellectual property rights

The legal entitlement attached to the expressed form of an idea or of other intangible subject matter.

bailor

The owner of the personal property in a bailment.

vendor

The seller of real property

bailee's duties

a bailee must take reasonable care of the bailed goods. If the bailee exercises due care, any loss or damage to the bailed property falls on the bailor because the bailor has title to it a bailee can extend or limit liability for the bailed goods in the bailment contract. For example, household goods movers and airlines restrict liability for goods and baggage, often to a certain amount of money per pound. The right to limit liability extends only to liability for ordinary negligence, not to willful or wanton misconduct because of the bailee's legal duty to care for the goods and to return them to the bailor, the bailee has an insurable interest in the goods and can obtain insurance to protect that interest. In the absence of a statute or specific contract requirement, however, the bailee has no duty to obtain insurance on the bailed goods. The bailee must hold insurance proceeds paid for the bailed property's damage in trust for the bailor, except for the amount representing the bailee's interest under the bailment agreement. a bailee has possession only and therefore can't transfer title to a third party. If the bailee sells the bailed goods to a third party, the bailor can recover them from the third party unless the bailor has represented the bailee as the owner of the goods. the bailee must surrender the gods to the bailor on request unless the bailment is for a term, such as a car rental, in which case the bailee can retain possession for that period. A bailment for a specified period entitles the bailee to possession only for that period. If the bailment has not set period, the bailor can terminate at any time and end the bailee's right to possession. The bailee must redeliver the goods within a reasonable time after the bailment period ends. A bailee's attempt to sell bailed good or to cause extensive damage to the goods, automatically terminates the bailment and entitles the bailor to immediately recover the goods, as well as any repair or replacement costss

Bailments

a bailment is when someone takes temporary possession of another person's property for a specific reason, such as clothes left at a dry cleaner or a car left at an auto body shop. The person who owns the item is the bailor; the person who temporarily accepts and houses the property is the bailee. A bailment has three elements: - the transfer of personal property possession without transfer of title- The transfer of possession is more than the transfer of mere custody. For example, if a jeweler hands a necklace to a potential customer to examine, that person has custody, not possession, and therefore is not a bailee. However, if someone leaves a suit with a dry cleaner for cleaning, the dry cleaner becomes a bailee - the bailee's acceptance of the bailed property- a restaurant patron who hangs his or her coat in an unattended cloakroom in the restaurant does not create a bailment. A bailment does arise, however, if the customer leaves the coat with a cloakroom attendant - the bailee's express or implied agreement to redeliver the property to the bailor or a designated third person- if the person receiving the goods has the option to return other property in exchange for the goods or to buy the goods, no bailment exists

bailor's rights and duties, part 2

a bailor is not usually liable for a bailee's negligent use of bailed property. However, a bailor who negligently entrusts property to an incompetent bailee can be held liable for resulting injuries to third persons. Negligent entrustment is leaving a dangerous article, such as a gun or car, with a person who the lender knows, or should know, is likely to use it in an unreasonably risky manner. For example, a car owner who permits an unlicensed minor to operate the car on the highway can be liable to a third party who is injured in an accident caused by the minor. A bailor who knows that the bailed property is in a dangerous condition can be liable for injury to a third party if the bailee is not aware of the danger. In some cases, a bailor has a duty to reimburse the bailee. The cost of repairs ordinary and incidental to the use of bailed goods under a rental contract is usually the bailee's responsibility. However, the bailor must pay the cost of extensive repairs to the property. For example, if a bailee makes repairs that the bailor should have made, such as installation of a new transmission in a car, the bailor must reimburse the bailee

tenancy in common definition

a concurrent ownership of property, in equal or unequal shares, by two or more joint tenants who lack survivorship rights

copyrights

a copyright gives its owner the exclusive right to copy or otherwise reproduce the applicable material and to create additional, or derivative, works based on the original. The federal Copyright Act of 1976 however, permits "fair use" ( that is, for educational or informational purposes such as teaching, research, criticism or comment) of copyrighted material without the owner's consent. For example, although a movie studio may own the rights to a movie, a movie critic who films a long-form review of that movie can, through fair use, include clips of it what constitutes fair use is not always easy to determine. To help with this endeavor, courts consider these factors: - purpose of the use -nature of the work -amount and substantiality of the portion used -effect of the use on the work's value - extent to which the use might deprive the copyright owner of economic advantage for works created on or after Jan 1, 1978, copyrights extend 70 years after the creator's death. For anonymous and pseudonymous works for which the author's identity is not revealed in the Copyright Office records and for works created for hire, they extend 95 years from publication or 120 years from creation, whichever is shorter. The duration of copyright of works originally created before January 1, 1978 but not published or registered until after that date, is determined in the same manner

Requirements That Deed Must Meet

a deed must be absolutely accurate- more so than the contract of sale- because if the two conflict, the deed prevails. Deeds must meet basic requirements: - under the statute of frauds, a deed must be in writing - the grantor must be legally competent, the grantor's name must be in the deed, and the grantor must sign the deed - the deed must name the grantee - the deed must state the consideration -the deed must contain words that specifically state that a transfer of the property is occurring -the deed must contain a description of the property conveyed -the deed must be dated -the deed usually contains a paragraph reciting who transferred the property to the grantor, date of transfer and the location of the recorded copy of the deed. - some states require the grantor's signature under seal -several states require witnesses to the grantor's signature -the deed must be delivered in order to effect the transfer -most states require an acknowledgement by a formal, written statement from a public official (usually a notary public) that the grantor has appeared before the official and has transferred the property voluntarily

fee simple estate

a full ownership interest in property with the unconditional right to dispose it

tenancy by the entirety

a joint tenancy between husband and wife

patents

a patent is granted by the federal government to a person who has given physical expression to an idea. For example, if Michael conceives of a qualifying invention and then physically creates it, he can obtain the exclusive right to make, use, and sell the invention for a certain period of time by applying for a patent

condominium definition

a real estate development consisting of a group of units, in which the air space within the boundaries of each unit is owned by the unit owner, and all remaining real and personal property is owned jointly by all the unit owners

tenancy definition

a right to possession or ownership, or both, of property

How Tenancy by the Entirety Differs from Joint Tenancy

a tenancy by the entirety is similar to a joint tenancy because the survivor takes the entire property. it differs from a joint tenancy in several ways: - a sale or contract to sell does not sever the tenancy - a creditor of only the husband and wife can't subject the property to a claim. Unless both spouses are found liable for the same tort, judgment creditors can't execute on the marital property. This can prevent a family from losing its home either the husband or wife causes a serious accident -neither party individually owns a portion that can be mortgaged.

accession

accession results from a union of two or more items, such as a coat of paint being applied to a house, or from the transformation of raw materials into a finished product, such as wood into barrels. It can also occur naturally, such as when a farm animal gives birth, in which case the animal's owner also owns the offspring if an owner's property is taken and improved by another party, the owner is not required to pay for added value. However, if the property is taken innocently and used to create something new, a relative value test maybe applied. Under this test, if the value of the finished products is greatly disproportionate to the value of the original goods, the innocent trespasser would retain title to the finished goods after reimbursing the owner for the reasonable value of the goods before improvement for example, let's say Maria is a woodworker who cut down three trees without realizing they were on her neighbor's land. If the trees were worth $1,000 each, but Maria turned them into tables that sold for a total of $10,000, she may be required to reimburse her neighbor only for the $3,000 the trees were worth.

accession definition

an increase or addition to property

life estate definition

an interest in which a person, called a life tenant, is entitled to possession of real property and to all income the land produces for the duration of that person's or someone else's life; the interest terminates on the death of the life tenant (or of the other person during whose life the life tenant possesses the property) and does not pass to his or her estate

Condominium Ownership

condominium ownership, like a cooperative, is concurrent ownership. However, it is closer to a true concurrent ownership than the cooperative and has two legal elements: - individual ownership of a "unit" or separate, defined area -an undivided interest in common or public areas ( common elements) that serve all individual units unless both elements exist, no condominium interest exists and the two elements can't be separated. A unit owner can't retain title to a unit and sell the undivided interest in the common element. Condominiums are usually multi-unit buildings, but sometimes groups of single-unit buildings qualify in this category. The common element is essentially the land and the building, together with attached or outside areas, such as parking and storage areas, and heating and cooling systems. The unit an individual owns often is described as a "box of air". a condominium is created by a written declaration that details the number of units and the percentage interest that each unit has in the common elements. Bylaws usually govern day-to-day operations of an association established to run the common elements. As tenants in common, all unit owners have interests in these common elements. Their interests can be equal but usually are not. in contrast to cooperative ownership, the condominium owner, as a tenant in common, has a direct property interest in the land and buildings, rather than a secondary interest as a shareholder of a corporation. The individual can sell, transfer, mortgage, or leave to heirs his or her condominium interest.

cooperative ownership

cooperative ownership is similar to concurrent ownership, but does not involve unity of possession or an equal right to occupy the entire premises with all other tenants. Cooperative ownership is a common method of owning real property, usually apartments. in cooperative ownership, a corporation holds title to the property. The cooperative owner purchases stock in the corporation and receives a long term proprietary lease for a certain apartment. The lease sets forth the parties' rights and liabilities, including provisions for monthly payments. The number of shares in the corporation that each tenant owns can be equal or vary according to each apartment's value for example, 10 people form a cooperative venture to construct 10 apartments at a cost of $2MM. The five apartments on the ground floor are each valued at $240K, the five on the second floor at $160K each. The corporation issues 100 shares of $20K stock. Those desiring ground floor apartments purchase 12 shares and those wanting the second floor purchase 8 shares each

Differing degrees of care required of the bailee

each type of bailment requires a different degree of care: - when the bailment is for the bailor's benefit, the bailee is gratuitously in charge of the goods and only slight care required. For example, if a bailor asks the bailee to care for his car, the bailee is liable for damage to the vehicle only if the damage was foreseeable and the bailee could have prevented it without substantial trouble or expense - when the bailment is for the bailee's sole benefit, the bailee must exercise an extraordinary degree of care. For example, a bailee who borrows the bailor's car must exercise great care - when the bailment is for the bailor's and bailee's mutual benefit, the bailee must exercise reasonable care under the circumstances. For example, a bailee who rents a tent for a lawn party must exercise reasonable care to ensure it is not damaged

Bailee's and Bailor's Rights and Duties

everyone is a bailor or bailee at some time. Bailors and bailees have rights and duties related to the property in bailment, which vary depending on the nature of the bailment. The principal consideration in determining these rights and duties is whom the bailment is intended to benefit. a bailment can benefit the bailee, the bailor or both. A bailee has a duty to take reasonable care of bailed property, and the extent to which a bailee may use that property depends on the type of bailment. Also, the bailee's right to compensation depends on the type of bailment

Elements of a Contract of Sale

execution of a contract of sale usually precedes a transfer of real property. The contract need not be complex or lengthy, but it must contain certain elements to be binding, and the parties must be legally competent into a contract. Vendor and vendee are the terms that apply, respectively to the real property seller and purchaser. After they execute the deed, they become the grantor and grantee, respectively. Even if title is in the vendor's name only, if the vendor is married, the spouse should sign the contract of sale. a contract of sale for real property requires these elements: - writing: under the statue of frauds, any agreement to transfer an interest in real property must be in writing and signed by the persons to be bound. If the vendor attempts to enforce the contract against the vendee, the vendee must have signed it and vice versa. The parties, however, can orally rescind a contract of sale because the rescission does not transfer an interest in real property. Any modifications

elements of gifts

for something to be considered a gift, these three elements must be present: - donative intent- the donor must intend to make a gift at the time it is given. A promise to make a future gift is not enforceable. Although the donor's subjective intent (or what he or she believes is being done) determines donative intent, what others might interpret as the donor's intent ( perceived as objective manifestations such as words that are said or body language that is seen ) can help prove intent - delivery- delivery of a gift can be by actual physical transfer, by constructive delivery, or implied by law. Basically, the donor must give up all control over and possession of (dominion over) the property, and the donee, or the recipient of the gift, must assume dominion over it. If the donee already has the property, the donor doesn't have to repossess it and then give it back to the donee. A donor handing car keys to a donee, for example, can establish constructive delivery of a car. When the tangible property is so extensive it is incapable of physical delivery, a symbolic act can accomplish delivery. In cases where the gift is intangible, such as with a bank account, a written document can prove delivery. - acceptance- parties rarely dispute acceptance. However, when a donee does not want the burdens of ownership, such as having to pay taxes, acceptance becomes important. One cannot force a gift on a donee.

confusion

fungible goods are those that are commercially interchangeable with other property of the same kind. Confusion can arise when fungible goods, such as wheat, belonging to different owners are mixed to the point that identification and separation of the goods are impossible in such case, courts consider whether the confusion results from willful misconduct or from an innocent act. If the mixture of goods was willful or fraudulent, the wrongdoer loses title to the goods, and the other owner obtains title to the wrongdoer's portion of the goods. If the confusion is innocent or accidental, the parties jointly own the entire mass in proportion to their respective interests. If this determination is impossible, loss falls on the party who caused the mixture.

trade secret

granted by: N/A applies to: method, process, design or other information used confidentially by an organization lifespan: indefinite but applies only if the information was improperly disclosed to or acquired by a competitor after the owner took precautions to maintain secrecy

Trademark

granted by: government entity applies to: distinctive designs or sets of words that identify a product or service lifespan: indefinite, but requires periodic renewal: federal registration affords added notice and benefits examples- Nike swoosh logo, trademarked by Nike, Inc.

patent

granted by: government entity applies to: a new, useful nonobvious invention lifespan: varies, depending on the type of patent example- insulin ( owned by Eli Lily)

copyright

granted by: government entity applies to: written document, piece of music, software, or other form of expression lifespan: varies, depending on time of creation of publication example of applications- The Lords of the Rings (JRR Tolkein) Let It Go- The Walt Disney Company

real property ownership

imagine a scenario in which family members share ownership of a home that has been in the family for generations. What would happen to property rights if one of the owners died or two of the owners divorced? Understanding that various types of ownership interest in real property, and the rights and constraints associated with each, can help risk management and insurance professionals serve the needs of customers and the public real property includes the surface of land and everything that is in, on, or above it, including oil, water, minerals and gravel under the surface, as well as trees, shrubs, and plants on the surface. Real property also includes buildings and other structures permanently affixed to the land. the term "estate" often includes, in a legal sense, the sum total of all types of property owned by a person at the time of death, including businesses, profits, savings accounts, stocks and other financial assets. But the word can have a more narrow meaning regarding the two types of real property: - fee simple estate - life estate when more than one person owns an estate, it is considered to be concurrent. Concurrent ownership can take different forms: - joint tenancy -tenancy by the entirety -tenancy in common - community property - cooperative ownership -condominium ownership

Bailor's Rights and Duties

in mutual benefit bailments and in bailments for the bailee's benefit, the bailor has a right to compensation according to the agreement. However, in bailments for the bailor's sole benefit, the bailor is not entitled to compensation a bailor can sue a bailee who does not return the bailed property at the end of the bailment term. If the goods have been damaged, either negligently or willfully, the bailor can sue either the bailee or a third person responsible for the damage in Mutual benefit bailments, the bailor owes the bailee a duty to supply goods that are reasonably fit for the purpose the parties envision. The bailor must make a reasonable inspection of the goods to determine any defects. The bailment agreement implies a warranty that the goods are in proper condition, and the bailor is responsible for any damage the bailee suffers because of unknown defects. In a bailment for the bailee's sole benefit, as when the bailor lends the goods to the bailee, the bailor must notify the bailee of known defects.

confusion definition

in property law the intermingling of goods belonging to different owners

Joint tenancy

joint tenancy is probably the oldest form of concurrent ownership and usually occurs today among members of the same family. The distinguishing feature of joint tenancy is that, on one joint tenant's death, the estate goes entirely to the other joint tenant. If Raj, Maria and Alicia are joint tenants and Raj dies, his interest goes equally to Maria and Alicia. If Maria then dies, the whole estate goes to Alicia. If Raj is married, his wife has no interest in the property through marriage. the parties create joint tenancy at one time, from one grantor, in equal shares. With two joint tenants, each must hold a one-half share and so on. One of the joint tenants cannot be subject to a condition that does not apply to the others. The same deed must name them all as owners.

real property security interests and liens

lending organizations and service firms are typically for profit entities that want to avoid financial losses. To mitigate that risk, they often use real property as collateral for loans or the subject of liens to ensure payment of promised fees. Mortgages, trust deeds and land contracts are security devices designed to protect the lender if the borrower is unable to make the scheduled payments

real property sales

much of our economy is grounded in construction of buildings and transactions of real property. Very little of this economic activity could take place without the involved parties being protected by insurance. For risk management and insurance professionals, understanding the requirements in both contracts of sale and the transfer of title to real property helps protect the interests of both purchaser and seller. in the sale of real property, the contract of sale is the agreement between the buyer and the seller that outlines the terms and conditions of the sale. The document that actually transfers title to the property is the deed. to be legally binding, a real estate contract of sale must meet certain requirements. it must be in writing and must include a description of the premises to be sold and the price. After property has been sold, a deed transfers title to the purchaser. There are three principal types of deeds: -warranty deeds -bargain-and-sales deeds - quit-claim deeds deeds are typically recorded as official documentation that transfer of ownership has occurred

grantor

one who conveys property to another

the relationship between ownership and possession

ownership & possession O: able to exclude others from using the property P: protected by law, except against the property's actual owner O: able to transfer ownership to another party O: obligated to pay taxes O: able to use property as desired, as long as other's rights are not interfered with

cooperative ownership definition

ownership, usually of real property such as an apartment building, by a corporation, the stockholders of which receive long-term proprietary leases to a portion of the property and a proportional vote in its affairs based on the number of shares owned

creation of intellectual property

people can create their own intellectual property- for example, by writing a book or song, inventing a device, or developing a process. This creative process leads to two results: 1) the intellectual property itself, expressed in the form of an idea or intangible subject matter 2) intellectual property rights, which include copyrights, trademarks, patents and trade secrets intellectual property rights are insurable rights that protect the creations of a person's mind and talents. For most purposes, federal, not state, laws governs all intellectual property rights

Ownership and Possession of Personal Property

personal property can change hands easily and often does so without any formal process. For insurance professionals, discerning who has ownership or was in possession of an item can play a key role in determining what losses are covered by which policies personal property, as a category, is any property that is not real property. It can be tangible, such as furniture and clothing, or intangible, such as copyrights and trademarks. But in all cases, its owners and possessors have legally protected rights, though such rights can vary by the circumstances of the property's creation and the type of ownership ownership is a relationship between the owner and the rest of society that includes three features: - the right to exclude all others from use and enjoyment of the property owned - the right to transfer a valid ("good") title to the property - the obligation to pay taxes and use property in ways that don't interfere with other's rights possession, on the other hand, is the custody or control of property without owning it. The law generally protects one's possession of property, except from that property's owner.

life estate

property owners can create lesser interests from total interest according to quality or length of ownership. A life estate is one type of lesser property interest a life estate lasts only until the death of a specified individual. For example, Raj grants land to Maria for the period of her life. Alternatively, Raj grants land to Maria for the period of Alicia's life. In each case, Maria is the life tenant. On either Maria's or Alicia's death, as established, title to the property reverts to Raj or Raj's estate. if the life tenant sells the land, the buyer's interest lasts only as long as the life estate. Therefore, a prospective buyer must be concerned with the life expectancy of the person on whose life the estate is based.

bailee's rights , part 2

some bailment contracts require compensation. For those that do not, courts assume that the bailor intended to pay a reasonable value for the bailee's services if a reasonable person would have realized the services require payment. A bailment for the bailee's sole benefit does not imply a charge for services because it is not reasonable to assume charges. When expressed or implied compensation is not paid, the bailee can assert a lien or even a possessory lien. for example, an auto repair shop can keep a car until the owner pays the repair bill. the lienholder is entitled to exclusive possession of the property until receipt of money owed. The lienholder, as a bailee, must take reasonable care of the property, including making repairs and expenditures reasonably necessary to protect and preserve the property

Community property

some states follow the Spanish civil law concept of community property. Under this concept, two types of property can belong to a spouse: separate property and community property. the separate property of either spouse is that which the spouse owned at the time of marriage as well as any property that the spouse acquires individually after marriage by gift or inheritance. Separate property is the respective spouse's sole property because communal effort did not produce it. It is therefore free from the other's spouse's interest or control under the community property concept, a husband and wide share equally in all community property, and the amount of their individual contribution to the joint effort does not change the equal interest. A gift to both spouses becomes community property. On a spouse's death, unless a will states otherwise, the property is divided in half. One-half goes to the surviving spouse; the other half goes to the deceased spouse's heirs, if any. A spouse can't, by will, dispose of more than one-half of community property.

Tenancy in Common

tenancy in common differs from joint tenancy and tenancy by the entirety in these ways: - it involves no survivorship -the parties can own unequal shares - the parties need not derive their interests in the same deed from the same grantor a will or deed can expressly create a tenancy in common, as when a deed is " to Raj and Maria, as tenants in common." More commonly, operation of law creates a tenancy in common. For example, if Raj dies intestate (without a will) and has three heirs, all three will inherit Raj's real property as tenants in common

grantee

the buyer of real property after execution of the deed

cooperative ownership, part 2

the corporation ordinarily arranges for financing, constructs the building, and then operates it. Each tenant, as a shareholder in the corporation, has a proportional vote in its affairs based on the number of shares owned. The corporation levies monthly assessments to pay mortgage principal and interest, taxes, cost of operations, insurance on the structure in the name of the corporation and other items cooperative ownership provides for operation and maintenance by someone other than the tenant while guaranteeing a right of occupancy for as long as desired. A disadvantages is the owner's limited control over external conditions, which can lead to deterioration of the investment. Finding a purchaser for the premises can be difficult, particularly if it is beginning to deteriorate. Additionally, if other tenants do not keep up their payments and as a result the mortgage payments lapse, the mortgagee can foreclose on the property. In that case, all tenants can lose any equity they have built up in the property

Bailee's Rights

the extent of the bailee's right to use bailed property varies depending on whom the bailment is intended to benefit: the bailee, the bailor or both. In a bailment for the bailee's sole benefit, as when a bailee borrows a bailor's car for personal use, the right to use the property is limited to the bailor's contemplated use when lending the car. If the purpose is to travel between two points, any deviation from the route reasonably contemplated by the bailor can make the bailee liable for any loss that occurs during the deviation. In a bailment for the bailor's sole benefit, the bailee may use or handle the property only to the extent necessary to preserve and protect it. For example, a bailee who accepts a fur coat for safekeeping should not wear it. In bailments for mutual benefit, the bailee can use the property as specified within the agreement or contract. A person who leases a car can use it only according to the leases agreement's terms. On the other hand, if a person bails a car for the purpose of storage or parking, the bailee ca only store or park the vehicle and can't use it for other purposes.

title

the legal ownerships of property; the highest right to property that a person can acquire

copyright definition

the legal right granted by a government entity to a person or an organization for a period of years to exclusively own and control an original written document, piece of music, computer code or other form of expression

estate in Fee simple

the owner of a fee simple estate can leave the property to heirs to sell, lease or use it. The typical owner of a single family home has a fee simple estate

bailee

the party temporarily possessing the personal property in a bailment

vendee

the purchaser of real property

patent

the right granted by a government entity to an inventory or applicant for a limited time period to exclusively own and control a new, useful and nonobvious invention

bailment definition

the temporary possession by one party ( the bailee) of personal property owned by another party (the bailor) for a specific purpose, such as cleaning or repair.

Tenancy by the Entirety

the usual form of deed for tenancy by the entirety is "to husband and wife, as tenants by the entirety". If the deed does not state "tenants by the entirety" explicitly, the law considers that phrase implied in joint tenancy between husbands and wives. Half an estate may be taken as tenants by the entirety, and the other half by another person, as "to Husband and Wife and Third Person". For example, Doris and Eduardo own half of a farm as tenants by the entirety and Cheryl owns the other half. divorce ordinarily servers a tenancy by the entirety. Both spouses can terminate it by joining in a transfer of the property or by transferring one spouse's interest to the other.

gifts definition

the voluntary and gratuitous transfer of property without consideration

types of deeds

there are three principal types of deeds: - the warranty deed can be of two types: general warranty and special warranty. A general warranty deed, in addition to transferring whatever title has the grantor has, contains the grantor's warranty that the title is free of all encumbrances (prior claims on the property), that the grantor has the title being transferred and that no one else has a better title. A special warranty deed contains warranties against only those encumbrances and defects in the title that might have been created since the grantor took title. a title insurance policy is particularly important for a special warranty deed because otherwise the grantee has no protection against earlier defects. In the event of breach of any of these warranties, also called convenants, the grantee can use the grantor. The deed states whether an encumbrance, such as a mortgage on the property, exists. - the bargain and sale deed transfers whatever interest a grantor has in real property to a buyer for valuable consideration but lacks any guarantee from the seller about the validity of the title, and it includes no warranties that the title is free from encumbrances. - the quit claim deed transfers only the title or interest (if any) the grantor has in the land at the time of transfer. it contains no warranties and if mortgages or liens encumber the land or any other claimants assert rights to the land- for example, if the grantor does not actually own it - the grantee has no recourse against the grantor

gifts

three elements are required for something to be considered a gift.

recording deeds

to record a deed, the buyer takes it to a local government office, usually known as the office of the recorder or registrar of deeds, and files it. The purpose of recording is to give notice to the world that the transfer of real property has occurred. all states have recording acts, under which any deed, mortgage or other instrument affecting land is not valid against a subsequent purchaser for value who had no notice or knowledge of the previous sale unless the instrument has been recorded For example, if Liang sold land to Mary in 2014 and sells the same land to Alani in 2019,Mary would prevail if she had recorded the deed, even though Alani knew nothing about the prior transaction. however, if Mary does not record the deed, and if Alani, unaware of the sale to Mary, purchases the land from Liang and records the deed, Alani's ownership takes priority over Mary's an unrecorded document affecting property rights is effective between the immediate parties and persons who are not purchasers ( such as donees and heirs) but not against subsequent purchasers for value without notice or knowledge

Concurrent Estates

two or more persons, particularly husband and wife, often own property concurrently. Concurrent ownership can be in any of these forms: -joint tenancy -tenancy by the entirety -tenancy in common -community property in each of these situations, the property owners have tenancy interests they can insure even though they share the property with at least one other person

WDYK? for example, let's say that Derek borrows a snowblower from Lisa, and someone takes it while it's in Derek's possession. Would Derek have the right to reclaim the snowblower from the person who took it?

unless Lisa is that person and is simply reclaiming her snowblower, the law will be in Derek's favor, and he would have the right to reclaim the snowblower from whoever took it

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which type of warranty would transfer whatever interest a grantor has in real property to a buyer for valuable consideration without any guarantee from the seller regarding the validity of the title? the bargain-and-sale deed would transfer whatever interest, a grantor has in real property to a buyer for valuable consideration without any guarantee from the seller regarding the validity of the title.