Personal. Property Flashcards
Property is characterized HOW?
Real property. Is immovable property
Personal property. Is movable property
What is a sales contract?
A sales contract is when the buyer purchases ONLY real property.
Personal property is not included unless it is specifically addressed in the sales contract.
Bill of Sale is what?
It is evidence of the transfer of personal property like a receipt..
The bill of sale includes description of the personal property and is usually referenced in the deed and not separately as a bill of sale.
What are2 types of personal property.
Emblements. Are annual growing crops produced by the labor and care of a tenant. Tenants have title to the emblements even after his tenancy has ended.
Land Trusts (HRS 558). Is a trust which conveys legal title to real property to a qualified (by the state of Hawaii) trustee. The beneficiary may have full management and control of the trust property including the power to direct the actions of the trustee.
What is the relationship between the trustee and the beneficiary?
Land trust will contain a provision declaring the interest of the beneficiary to be PERSONAL PROPERTY.
Therefore the trustee has an ownership interest with no rights.
The beneficiary has a personal property interest.
In a land trust 2 instruments are required
1) . A conveyance document conveying the real property to the trustee
2) . A trust agreement
Usually land trusts are used to avoid multiple probate proceedings
Financing personal property
Securing financing personal property involves2 instruments
1) . Security agreement
2) . Financing statement
Security agreement is what?
Security Agreement defines the terms of the borrower (debtor) and lender regarding the borrower purchasing personal property on credit. The borrower grants the lender as a secured interest in the personal property of the borrower, as a security for debt.
Only borrower is required to sign agreement.
Financing Statement ( UCC-1). Uniform Commercial Code form 1.
The financing statement indicates the lender has a SECURED INTEREST IN THE PERSONAL PROPERTY OF THE BORROWER — not the real property. The financing statement is signed only by the lender and made a public record recording at the bureau of conveyances.
Financing Statement is not an agreement. It is a notice( constructive notice).
Lender’s secured interest remains attached even after personal property becomes a fixture.
How long are financing statements effective?
5 years from date of filing unless extended
A financing statement cannot be filed in Land Court unless the financing statement includes fixtures then it MUST be recorded in the bureau of conveyances in addition to the security agreement with the Land Court.
The security agreement with the financing statement are equivalent to a mortgage of real property.
Collectively, these are referred to as a chattel mortgage which is not a legal term
The difference. Is that a mortgage is both notice and agreement of real property.
The notice and agreement regarding personal property are separate instruments….the security agreement and the financing Siemens.
