2 - Real and Personal Property

Question 1

Land

Answer 1

Defined as the surface of the Earth, extending downward to the Center of the Earth and upward above the surface to Infinity. This definition also includes natural things such as trees crops, and water.

Question 2

Severable

Answer 2

Capable of being divided into legally independent rights or obligations.

Question 3

Subsurface rights

Answer 3

Includes the right to oil, gas, and other minerals and are commonly conveyed through a lease, mineral deed, or by reservation. This right is dominant in the state of Texas and the service owner cannot deny access.

Question 4

Improvement

Answer 4

Any permanent man-made addition to the land and is considered to become part of the land.

example: buildings, Landscaping, fences, patios, decks, roads, curbs. INCLUDES shrubs, trees.

Question 5

Emblements

Answer 5

Annual crops produced with labor.

Even though they are attached to the land, they are considered personal property and may be harvested by the owner of the crop.

In the TREC Promulgated Farm and Ranch contract provides that, when a property is sold, the seller has the right to harvest crops up to the delivery of possession of the property to the buyer. The parties can agree to modify this provision.

So if the property is sold and the buyer moves in technically they’re his. But they can agree to modify this provision.

Question 6

Real Estate

Answer 6

Includes all that land encompasses, with the addition of all man-made additions to the land (improvements) such as roads, houses, and commercial buildings.

Question 7

Bundle of Rights

Answer 7

A term for the set of legal privileges that is generally afforded to a real estate buyer with the transfer of the title.

Question 8

Air Rights

Answer 8

These rights extend above the surface without limitation. these rights can be leased, sold or mortgaged. Walkways and buildings that extend over public streets involve the lease or convenience of these rights.

Question 9

Personal Property

Answer 9

Things of a temporary or movable nature. Also known as personality or chattel. It’s sold with real property, a bill of sale is used to accomplish the transfer.

Question 10

Real Property

Answer 10

A broader term that goes beyond the physical real estate and includes the rights that a person has in the land. These rights are often referred to as “bundle of Rights”

Question 11

Surface Rights

Answer 11

The owner of these rights can develop (improve) the surface, and use the resources extracted from or near the surface, including Stone, gravel, water, and limestone.

Question 12

Fixture

Answer 12

Personal property that has become attached to the land in such a way as to become real property. These are generally considered to be part of real property and are transferred to the new owner unless specifically excluded.

Question 13

Royalty Right

Answer 13

The right to collect a royalty for the production of oil or gas in a production unit.

Question 14

Executive Right

Answer 14

the right to execute a contract or lease for the exploration of oil or gas.

Question 15

Chattel

Answer 15

another name for personal property.

Question 16

Severance

Answer 16

Removing fixtures (by detaching them from real property or by uninstalling them) to create personal property.

Question 17

Annexation

Answer 17

The process of attaching personal property so that it becomes real property.

Question 18

Trade Fixtures

Answer 18

Items necessary for an individual to carry out his or her trade or profession.

example: barber chairs, medical examining tables, Grocers refrigerated cases, and checkout counters.

Question 19

Accession

Answer 19

The process of trade fixtures not being removed before the expiration of a lease, resulting in the fixtures becoming property of the landlord.

Question 20

Bill of Sale

Answer 20

For personal property that is included in the transfer of property.

Question 21

Manufactured Home

Answer 21

A home that is built in a factory according to a federal building code administered by HUD.

They are all built on a frame that includes axles and towing components.

When initially sold, it is considered personal property, like a vehicle. The home can be treated as real property if the owner wants the home classified as real estate.

If treated as real property, will qualify for financing terms that are far more favorable than those available for manufactured homes treated as personal property.

NOT A MOBILE HOME

Question 22

HUD

Answer 22

U.S Department of Housing and Urban Development

1976.

Question 23

Modular Homes

Answer 23

Homes that are primarily built off-site in a factory. They are generally constructed in two or more units and assembled on site.

Most are indistinguishable from site-build homes.