Unit 8- Rights of Voluntary Acquisition and Real Security Rights Flashcards
q
how are rights of voluntary acquisition granted?
by a person or by will.
what are the 3 types of rights of voluntary acquisition?
right of option; right of first refusal and right of withdrawal.
what can rights of voluntary acquisition be established on?
property, objects and shares.
what does the right of voluntary acquisition imply?
that the title-holder has a right to acquire a certain thing because the present owner decides the transfer it.
how are the rights of legal acquisition granted?
by a legal provision
what is the right of first refusal?
the owner who is willing to sell his property is obliged to give notice to the titleholder of the right of their intention to sell.
what does the titleholder of the right of first refusal have the right to?
1) acquire the thing by paying the price asked for it
2) not acquire the thing and thus, leave the owner free to sell to a 3rd party.
what happens if the owner sells their property to a 3rd party without notifying the titleholder?
the titleholder will be entitled to exercise their right of redemption against the buyer, by reimbursing them the price they paid for the property.
what is a right of option?
the titleholder has the power to acquire an object belonging to another person as long as they a) pay the price agreed to in the contract and b) exercise this right within 10 years.
who decides the time period of the right of acquisition?
the titleholder
relating to the right of option, what happens if the object is lost
the individual will no longer have the right to acquire the property.
what happens if you are not informed about a right of first refusal?
this right will convert itself as a right of buy-out, and it must be exercised within 3 months.
what is the right to redeem?
it is a contract of sale which grants the seller the right to repurchase property within a time period that cannot exceed 20 years. it is regulated by the CCC.
in the right to redeem, what does the redeemer need to do in order to repurchase the property sold?
the redeemer must pay the owner of the property: a) the price set at the time of sale, c) the expenses of repairing the property, f) cultivation expenses, g) the prices incurred by the contract
what are real rights of guarantee (or securities)?
they are limited real rights. they grant the creditor the power to sell a good in guarantee when the debtor did not comply with the performance of an obligation.
