Wiley CPAexcel Exam Review 2014 Focus Notes: Regulation

Module 34: Property

PROPERTY

Personal Property

Ownership

Acquired through

• Possession, if not owned by some other party
• Inheritance
• Gift
• Confusion through commingling of identical goods
• Accession through improvement by other party
• Production

Ways to obtain ownership of personal property such as a PIG or a CAP

Real Property

Includes land and all permanent structures attached to the land. Also includes mineral and air rights.

Ownership

A fee simple interest is the absolute right to sell or transfer property.

Deeds—Voluntary transfers from grantor to grantee; this document transfers ownership of the real property

• Warranty deed—“I own this property and am transferring it to you free of claims of third parties that I have not made you aware of.”
• Grant deed—“I own this property and am transferring it to you having created no claims against it that I have not told you about.”
• Quitclaim deed—“I transfer my interest in this property, if any, to you.”

Adverse possession—Involuntary transfer to party taking possession

Eminent domain—Government takes title

Co-Ownership

Tenants in common

• No right of survivorship
• May have unequal ownership interests

Joint tenancy

• Right of survivorship
• Ownership interests must be identical

Easements are a nonpossessory interest which allows the owner of the easement to use another's property.

Important Property Documents

Contract

• Recites the terms of the bargain
• Must be in writing
• Identifies the parties
• Provides the purchase price
• Describes the property ...