Property Ownership

Question 1

What are the two classifications of property and what do they include?

Answer 1

1) Personal = anything movable; property that is not real.
2) Real = anything immovable or immovable by law.

Question 2

What are the 2 classifications of personal property (chattels)? Define and give examples.

Answer 2

1) Choses in action = intangible items; documents giving holder a right to an action. Ex: trust deeds, mortgages, leases, security agreements, etc.
2) Choses in possession = tangible items. Ex: automobiles, money, furniture, jewelry, stock in trade of a business or trade fixtures.

Question 3

What is a chattel real? Define and give examples.

Answer 3

Any document relating to a right or interest held in real property.
Ex: leases or rentals on real property.

Question 4

What is a bill of sale?
What is required for it to be valid, what is not required?

Answer 4

Document which evidences transfer of personal property.
Required to be valid: (1) dated, (2) in writing, (3) identify subject matter, (4) signed by vendor.
Not required to be valid: (1) vendor’s signature acknowledged (required only if wanting to record), (2) recording the bill of sale.

Question 5

What are 2 types of security?

Answer 5

1) Hypothecated - given as security while retaining ownership and the legal possession of the property. Ex: house, apt, etc.
2) Pledged - given as as security while retaining ownership, but transferring legal possession to the lender. Ex: pawn shop, where items pledged as security.