Real Property
What makes real property different from personal property?
Real property is immovable; personal property can be moved.
What is a lease?
A contract allowing someone to use property for a set time.
What is a bailment?
Temporary transfer of possession of personal property to another person for a specific purpose.
What is estate planning?
Preparing how someone’s property and assets will be managed after death or incapacity.
What is a will?
A document explaining how a person’s property will be distributed after death.
Name one example of something considered real property.
Land, buildings, trees, etc.
What’s the difference between a residential and commercial lease?
Residential = living; commercial = business use.
Who are the two parties in a bailment?
Bailor and Bailee
Why is estate planning important even for people without a lot of money?
It prevents confusion and ensures assets go where intended.
What is the difference between a will and a trust?
A will goes into effect after death; a trust can take effect during life.
What is a mortgage, and how does it work?
A loan secured by real property that must be repaid; the lender holds the title until it’s paid off.
Name one major landlord obligation and one tenant obligation.
Landlord: maintain property; Tenant: pay rent, avoid damage.
What’s an example of a bailment for the sole benefit of the bailor?
Watching someone’s car for free while they’re on vacation.
Name two goals of estate planning.
Protect family, reduce taxes, avoid probate, choose guardians, etc.
Who is the executor of a will?
The person who carries out the will’s instructions.
What’s the difference between a fixed-rate and an adjustable-rate mortgage?
Fixed-rate stays the same; adjustable changes based on interest rates.
What is one tenant right under landlord-tenant law?
To have repairs done, privacy, fair notice of rent changes, etc.
What’s an example of a bailment for the sole benefit of the bailee?
Borrowing a friend’s bike for free.
What can happen if someone dies without a will?
The state decides who inherits property.
What’s one benefit of having a living trust?
Avoids probate, manages property while alive, protects privacy.
Why is it important to record a property deed with the county?
It makes ownership official and legally protects the owner’s interest.
Why might commercial leases have fewer legal protections than residential leases?
Businesses are expected to negotiate terms more independently.
In a mutual benefit bailment, what must both parties do?
Exchange benefits and use reasonable care to protect the property.
What is probate, and why do people try to avoid it?
Legal process of validating a will; it’s slow, public, and costly.
What’s the difference between a revocable and irrevocable trust?
Revocable can be changed; irrevocable cannot.