Mod 34 Property Flashcards Preview

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Flashcards in Mod 34 Property Deck (165):
1

Personal property is either...

Tangible or intangible

2

Tangible property

Items you can physically hold

3

Intangible property

Interests or rights that are not capable of physical possession

4

Fixtures 2

1 Personal property that is so attached to real estate

2 that it becomes real estate as a matter of law

5

Whether or not an item is a fixture depends on 4

1 intention of party who attached it
2 how it is attached to real estate
3 damage removal would cause real estate
4 trade fixtures

6

Trade fixtures 2

1 items used in a trade or business

2 are usually personal property

7

Ways to acquire property 3

1 by gift

2 by inheritance

3 by finding property

8

Gift, definition 2

1 a present

2 voluntary transfer of property without consideration

9

A gift has 3 elements

1 donative intent

2 delivery and

3 acceptance

10

Why is a promise of a gift unenforceable?

Because there is no delivery

11

Inter vivos gift 2

1 made while donor is still living

2 once made, it is irrevocable

12

Gift causa mortis 2

1 deathbed gift

2 automatically revoked if donor doesn't die

13

Inheritance occurs by... 2

1 by will or

2 by intestate succession if there is no will

14

By Finding Property:

With lost or mislaid property

Finder gets good title against all but the true owner

15

By finding property:

With abandoned property

Finder gets good title even against true owner

16

Deeds have 4 elements

1 must be in writing
2 signed by grantor
3 contain a description of property
4 delivered

17

a general warranty deed...

Gives the best protection

18

A general warranty deed provides the following 3 guarantees

1 good title and right to convey (ownership)

2 no unstated encumbrances

3 buyer's title will be undisturbed by any adverse claims of
ownership from others

19

Special warranty deed

Only guarantees ownership for time seller owned property

20

Quitclaim deed 2

1 grantor gives whatever title or interest

2 but doesn't guarantee he has anything

21

Least protection

Grantor doesn't guarantee he has anything

22

All deeds promise...

An implied warranty of marketability

23

Implied warranty of marketability of deed

Deed free from reasonable doubt

24

No unstated encumbrances 3

No unstated mortgages, liens, easements

25

Zoning restrictions are...

Not defects to marketable title

26

Title insurance

Protects owner against losses due to defects of record in their
Title

27

Title insurance only insures that...2

1 there are no defects of record and

2 only up to date of policy

28

The title insurance policy may make exceptions to...2

1 title coverage

2 and usually does

29

A title insurance policy cannot...

Con not be assigned to a 3rd party

30

Recording of deeds and mortgages gives...

Constructive notice to all subsequent 3rd parties of your interest

31

You don't need to record deeds or mortgages to...

Give sellers or mortgagors notice

32

Real Property, define 4

1 land
2 items firmly attached to land
3 things under land
4 air above the land

33

With unrecorded deeds or mortgages...

A subsequent party may obtain a superior interest in the property

34

3 types of recording statutes for subsequent parties in deeds or mortgages

1 notice jurisdiction

2 race jurisdiction

3 notice-race jurisdiction

35

Notice race jurisdiction is also known as...

Race notice jurisdiction

36

Notice jurisdiction 2

1 Failure to record means you lose to subsequent parties without
Notice of your interest

2 whether or not they had notice

37

Race Jurisdiction 2

1 the first to record wins

2 whether or not they had notice

38

Notice-race (race-notice) jurisdiction

Failure to record means you lose to subsequent recording parties without notice of your interest

39

With Tenants in Common...

Each co-owner has undivided interest in property

40

Tenants in common:

Undivided interest in property 2

1 this interest can be inherited

2 interest can be transferred without other co-owner's permission

41

Inherited

If one dies, property goes to heirs

42

With joint tenants, each co-owner has...

Undivided interest in property

43

Joint tenants:

Each co-owner must...

Have equal interest in the property

44

Joint tenants:

Each has rights of...

Rights of survivorship

45

Rights of survivorship

If one dies, property goes to surviving owners

46

Joint tenants:

Interest can be transferred...2

1 transferred without co-owners permission

2 but buyer becomes tenant in common

47

Joint tenancies have...

2) neumonic?

4 unities (elements)

2) PITT

48

4 elements of joint tenancies

1 possession
2 interest
3 time
4 title

49

4 elements of joint tenancies (PITT):

P 2

1 possession

2 each has undivided right to use whole property

50

4 elements of joint tenancies (PITT):

I 2

1 interest

2 each joint tenant's interest is of same type and duration

51

4 elements of joint tenancies (PITT):

T 2 (first)

1 time

2 each tenant's interest arose at the same time

52

4 elements of joint tenancies (PITT):

T 2 (2nd T)

1 title

2 each acquired their title by the same instrument

53

Tenants by the Entirety

Joint tenancy between husband and wife

54

Under Tenants by the Entirety, husband or wife may...

Not transfer their interest without specific co-owner's permission

55

If type of co-ownership is unclear...

Law counts it as tenancy in common

56

Mortgages:

Most states follow...

The lien theory of mortgages

57

lien theory of mortgages:

Mortgage define

Lien on land to secure payment of debt

58

lien theory of mortgages:

The mortgagor...2

1 retains legal title and

2 right to possession

59

lien theory of mortgages:

A mortgagee may...

Assign the mortgage even if prohibited by the contract

60

lien theory of mortgages:

Mortgagees are regulated by...

the Real Estate Settlement Procedures Act (RESPA)

61

What does RESPA stand for?

Real Estate Settlement Procedures Act

62

Mortgages have elements that are...

The same elements for deeds

63

4 elements of mortgages

1 must be in writing
2 signed by mortgagor
3 contain description of property
4 be delivered

64

Upon foreclosure, all mortgage debts and expenses are...

Paid in order of their priority

65

Priority of mortgage debts and expenses upon foreclosure 2

1 mortgagee is paid in full before subsequent mortgagees

2 any surplus goes to mortgagor

66

A mortgagor remains liable for...

Any deficiencies if there is no surplus after mortgagee is paid

67

1st the mortgagee is paid in full before subsequent mortgages are paid unless...

There is a recording problem

68

Right of redemption 2

1 mortgagor's right to redeem the property after default

2 but prior to judicial sale by paying all mortgages in full

69

Assuming a mortgage 2

1 Buyer agrees to be liable and

2 seller is still liable

70

Novation 2

1 buyer agrees to be liable and

2 mortgagee releases original mortgagor

71

Buying subject to 3

1 buyer is not liable

2 only seller (original mortgagor) is liable

3 buyer runs the risk of foreclosure if seller doesn't pay

72

A lease must give the tenant...

The right to exclusive possession

73

Leases do not require writing unless...

The lease is for more than 1 year

74

If the lease is in writing it must include...

A description of the leased premises

75

For leases, a due date for rent payment...

Is not required

76

Leases:

Assignment

New tenant pays landlord

77

Leases:

Sublet

New tenant and old tenant pays landlord

78

Assigning and subletting can both be done unless...

Prohibited by lease

79

The assignor or sub lessor is still...

Liable for rent if not paid

80

Neither death nor sale of property...

Ends a lease

81

Bailment 2

1 temporary transfer of possession, but not title to personal property

2 by rightful owner (bailor) to another (Bailee)

82

Bailments have 3 elements

1 delivery of personal property by bailor to bailee

2 transfer of possession of personal property but not ownership

3 imposes absolute duty on Bailee to turn or send item as bailor
directs

83

Element of bailment:

Delivery of personal property, does not include...

Real estate

84

Bailee is liable for...

Negligence (lack of due care)

85

Bailee is presumed to be negligent...

If goods are lost or destroyed

86

If the Bailee can prove that the goods were lost or destroyed...

Through no fault of the Bailee, the Bailee is not liable

87

The Bailee has absolute liability without regard to fault in the following 2 cases

1 Bailee is strictly liable for unauthorized use of property

2 Bailee is strictly liable for misdelivery

88

Why is the Bailee strictly liable for misdelivery?

Because of the absolute duty to return the goods to the right
person

89

Common carriers

Those in business of transporting the public's goods

90

Common carriers are considered...

Extraordinary Bailees

91

Common carriers liability

Strictly liable for any loss to the goods regardless of fault

92

Common carriers are strictly liable for any loss to the goods regardless of fault. 2 exceptions

1 not liable for loss due to goods improperly packed by party
shipping them

2 not liable for acts of God

93

Acts of God 2 examples

Floods, tornadoes

94

Bailees, including common carries may limit...

Limit their liability by contract

95

Notice jurisdiction (plain English definition from video) 2

1 if 1st mortgagee doesn't record

2 second mortgagee will get house if they don't know about 1st mortgagee

96

Race jurisdiction (plain English video definition)

Whoever records mortgage first wins

97

Notice-Race or Race Notice jurisdiction (plain English video definition) 2

1 first mortgagee doesn't record notice

2 second mortgagee must record before first mortgagee and not
Know about first mortgagee

98

Adverse possession

Possessor of land, who was not owner, May acquire title if he
holds it for statutory period

99

Adverse possession:

What is the statutory period?

2) when does statute begin to run?

Varies by state, 5-20 years

2) begins to run upon taking possession

100

5 necessary elements of adverse possession

1 open and notorious possession
2 hostile possession
3 actual possession
4 continuous possession
5 exclusive possession

101

Open and notorious possession

Owner knows you're there

102

Hostile possession 2

1 owner doesn't want you there

2 must indicate intentions of ownership

103

Actual possession, define with example

Possession of land consistent with its normal use

Ex. Farm land is being farmed

104

Intellectual Property and Computer Technology Rights:

2 general competing goals

1 incentives to create products and services

2 provide public access to intellectual property, computer ideas
And uses

105

Intellectual Property and Computer Technology Rights:

Incentives to create products and services

Granting property rights so creators have incentive to create and market

106

Intellectual Property and Computer Technology Rights:

Provide public access to intellectual property and computer ideas and uses

Limiting intellectual and computer technology rights so public has access

107

Copyright Law:

Protects...

Original works (literary, musical, artistic)

108

Copyright Law:

Expressions of ideas are...

2) ideas themselves may...

generally copyrightable

2) not be copyrighted

109

Copyright Law:

Amendments to Copyright Act give added protection to...2

1 Computer hardware and

2 computer software

110

Copyrights created after January 1st, 1978 are...

Valid for life of author + 70 years

111

How long are copyrights valid for, for a publishing house?2

1 95 years form publication date or

2 120 years from creation date (whichever expires first)

112

Registration of copyright is...2

1 Not required

2 copyright begins when author puts expression in tangible form

113

Registration gives copyright owner, in case of infringement rights to...

Damages and attorney's fees

114

Works published after March 1, 1989...

No longer need copyright notice on them

115

Fair use doctrine

Allows use for limited purposes without violating copyright

116

Fair use doctrine 4 examples (of limited use of copyright without violation)

1 portions for comment
2 news reporting
3 research or
4 teaching

117

Accessing digital work is...

Not protected by fair use doctrine

118

Consumer Software Copyright Act amends copyright law to include...

Computer programs as creative works protected by law

119

Consumer Software Copyright Act. 3 areas of computer program covered

1 computer program readable by humans

2 binary portions normally read by computer

3 basic structure and organizations

120

No Electronic Theft Act (NET Act) 2

1 criminalizes copyright infringement over Internet

2 whether or not financial gain where retail value of copyright
exceeds $1,000

121

No Electronic Theft Act, provides for...

Imprisonment and fines

122

Patent Law:

What does it cover?6

1 machines
2 processes
3 art
4 methods
5 composition of matter
6 new and useful improvements

123

Patent Law:

New and useful improvements include...

Genetically engineered plants and animals

124

Under patent law, mere ideas are...

Not covered

125

Cyber plans can be patented when they use practical application of...3

1 formulas

2 calculations or

3 algorithms

126

Cyber plans can be patented when they use practical application of formulas, calculations or algorithms because they produce results that are...3

1 useful

2 tangible

3 concrete

127

Patent law:

Invention must be...3

1 novel

2 useful

3 not obvious

128

Patents are administered by...

U.S. Patent and Trademark Office

129

Patent law:

Inventor may not obtain patent if invention was on sale or in public use in U.S. at least...

1 year before attempt to obtain patent

130

Generally patents are valid for...

20 years from when patent application was filed

131

How do patents usually receive international protection for 20 years?

By treaties

132

Design patents are valid for...

14 years from date of issuance

133

Owner of patent must Mark it...2

"Patent" or "Pat" to give notice to others

134

U.S. Gives patent protection to...

2) rather than...

First inventor

2) rather than first to file patent

135

Most countries give protection to...

The first to file patent

136

Financial and business models used over the computer...

Can be patented

137

What does US PTO stand for

Patent and Trade Office

138

PTO may reexamine and...

Reject patent

139

Patent may be overturned or narrowed in...

Case brought to court

140

Patent law is exclusively...

Federal law, (not state law)

141

Remedies for infringement of patent 3

1 injunctions

2 damages including lost profits traceable to infringement or

3 assessment of reasonable royalties

142

Patent law:

If infringement is willful, inventor may be...

1 awarded treble damages and

2 require infringer to pay attorneys fees

143

U.S. Supreme Court affirmed that you cannot escape liability for patent infringement in which...

Only insubstantial changes to patent are made in attempt to be
new patent

144

Paris convention

Allows patent protection in many foreign countries

145

Paris convention:

Most comprehensive agreement...

Between nations involving intellectual property

146

Paris convention:

Signed by...

Nearly all industrialized countries and many developing countries

147

Paris convention:

Generally allows a one year grace period for...

Inventors to file in other countries, once inventor files protection
In first country

148

Trade Secrets Law:

Economic Espionage Act

Makes it federal crime to use trade secrets

149

Trade secrets include such information as...6

1 financial
2 engineering
3 scientific
4 technical
5 software programs or
6 codes

150

Trade secrets also protect...

Processes used by company

151

Federal law helps protect against computer hackers who steal...

Trade secrets such as data bases and computer lists

152

Trade secret protection includes, what possible 4 areas to give business advantage of competitors...

1 formulas
2 patterns
3 devices or
4 compilations

153

Trade secrets must be secret that others have...

Difficulty acquiring except for improper means

154

An owner must take reasonable steps to...

Guard trade secret

155

Trade secrets can cover computer...

Hardware and software

156

Trade secret protection may be lost if...2

1 owner of trade secret fails to take steps to keep it secret or

2 other person independently discovers what was subject of
Trade secret

157

Methods to help protect trade secrets include:

Licensing of software

Prohibit copying except for backup copies

158

Methods to help protect trade secrets include:

Provide license that is...

Terminated for any breach of confidentiality

159

Methods to help protect trade secrets include:

Sell software in...

Object code instead of source code

160

Methods to help protect trade secrets include:

Have employees and buyers...

Sign confidentiality agreements

161

Semiconductor Chip Protection Act 2

1 amends copyright laws

2 prohibits taking apart chips to copy them

162

Semiconductor Chip Protection Act:

Prohibits taking apart chips to copy them...2 exceptions

1 allows act if used to create new chip rather than copy

2 copying common place designs are allowed

163

Semiconductor Chip Protection Act:

Protection is for...

10 years time from registration or first commercial application (whichever is first)

164

Semiconductor Chip Protection Act:

Permits civil recovery and penalties up to...

$250,000 for chip piracy

165

Semiconductor Chip Protection Act:

Reverse engineering of chips is...

Allowed if creates some new innovation

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