Ch.2 - Real Property Flashcards
Land
What does it include?
This includes…
- the surface area of the earth and everything beneath the surface of the earth extending downward to its center.
- All natural things permanently attached to the earth
- The air above the surface of the earth extending outward to infinity
(surface + all natural things attached to it + subsurface + air above the surface)
What are the land characteristics?
- immobile
- Indestructible
- Non-Homogeneous
Parcel or tract
A portion of land delineated by boundaries
Real estate
What does it include?
This can include land and all man-made structures that are “permanently” attached to the land.
Improvements
Man-made structures attached to the land
Ex. Sheds
Property can be tangible or intangible and property can be blank or blank?
Personal and Real
Real Property
The item that someone owns, plus the associated rights of ownership
Personal property
Anything which is not real estate and the rights that come with owning the personal property items
What are the five differentiation criteria between real and personal property?
- Intention
- Adaptation
- Functionality
- Relationship of parties
- Contract provisions
Tangible property
Property that is physical, visible, and material
Intangible property
Property that is abstract, having no physical existence in itself, other than as evidence of one’s ownership interest
Fixtures
Real property that people convert from personal property by attaching it to real estate
Trade fixtures
Personal property items temporarily attached to real estate in order to conduct business; these items Are designed to be removed at some point
*temporarily attached
What is another word for trade fixtures?
Chattel fixtures-
Personal property that are expected to be removed from real estate at some point
Emblements
What type of property is it?
Plants or crops require in human intervention for planting and harvesting.
- These are considered to be part of personal property
Chattels or Personalty is another word for?
Items of Personal property
Conversion
The act transforming real to personal property through severance or personal to real property through affixing
What does severance mean in conversion?
The act of transforming real to personal property
What does the word affixing mean in conversion?
The act of transforming personal to real property
Littoral Rights
Rights that concern properties next to bodies of water that are not moving, such as lakes and seas
Riparian Rights
Rights that concern properties next to moving water such as streams and rivers
How are Riparian Rights determined?
The owner’s (blank) are determined by whether the water is navigable or not navigate.
Five bundles of legal rights
What are they?
- The right of possession
- The right of disposition
- The right of control
- The right of exclusion
- The right of enjoyment
Right of possession
One of the five bundles of legal rights
- this is the right to use the property in certain ways Such as mining, cultivating, landscaping, razing, and building on the property
- The right is subject to limitations of local zoning and legality of the use
Right of possession
What is it’s limitation?
The right is subject to limitations of local zoning and legality of the use
Right of disposition
One of the five bundles of legal rights
- this includes the right to sell, bequeath, Lease, donate, or assign ownership interest
Right to control
One of the five bundle of legal rights
- The title holder can use the property in anyway that is not illegal
What is another word for the bundle of rights?
The rights of ownership.
There are 5
Right of exclusion
One of the five bundles of legal rights
- This allows the title holder to limit who may enter the property, keep off the property, and prosecute trespassers
Limits:
- Easement may be in place permitting access to utility lines may override this right
- A warrant authorizing a search of the property trumps the right of exclusion
Limitations of right of exclusion
- Easement may be in place permitting access to utility lines may override this right
- A warrant authorizing a search of the property trumps the right of exclusion
Right of enjoyment
One of the five bundle of legal rights
- There’s a search the title holders right to participate in any activities they find pleasurable and legal while on the property
Surface rights
This right applies to the real estate that is within the surface boundaries of the parcel (A portion of land do you delineated by boundaries).
- includes The ground, all natural things affixed to the ground, all improvements
- also include water rights
Intention
Once original intention can override the test of movability in determining whether an item as a fixture or not.
- fixture- Real property that people convert from personal property by attaching it to real estate)
Types of situations in Intentions
What is deemed personal/real property and what isn’t?
Types of cases for this word
If someone attaches it to real property With the intention to remove it after period of time it could be deemed as personal property.
If a person intended an article to be a fixture even though the item is easily removable the article may be deemed a fixture
Severance
What are some examples?
The conversion of real property to personal property by detaching it from the real estate.
- Ex. Cutting down a tree, detaching a door from the shed or removing an antenna from a roof
Affixing
What are some examples?
Affixing, or attachment, is an active converting personal property to real property by attaching it to the real estate
- Ex. Assembling a pile of bricks into a barbecue pit for constructing a boat dock from wood planks
Air rights are usually what in Texas?
In Texas, air rights are usually given for a fee, and are not usually bought or sold
Case Law
Decisions based on judicial precedent
Common law
The collective body of law deriving from custom and generally accepted practice in society
Real property rights
Any of the bundle of rights, can be laterally severed into the air space, surface, and subsurface rights.
Federal Regulation of Real Property Interest
- Grants overall rights of ownership
- Controls fraud usage standards, discrimination
State Regulation of Real Property Interest
- primary regulatory entities of the real estate business
- Establish his real estate license laws and qualifications and sets regional usage standards
Local Regulation of Real Property Interests
- Levies real estate taxes
- Control specific usage
Judicial Regulation of Real Property Interest
Applies case law and common law to disputes
*type/level of regulation
Right to transfer interest is another word for?
Right of Disposition
Right to encumber
The right to mortgage the property as collateral for debt
Who does not have to have a special license to sell a manufactured home?
A real estate broker
- does not need to have what to do what?
What do we call the rights associated with owning a parcel of real estate?
Real property rights
What is it called when a tenant enjoys the right to possess and use an owners building over a period of time?
Ordinary lease
What is the foremost property right?
Right of possession
What rate applies to extracting mineral and gas deposits and subsurface water from the water table?
Subsurface rights
Air rights apply to what space?
The space above the surface boundaries of the parcel, which imaginary vertical lines that extend to infinity define
Fair housing laws are designed to do what in regards to discrimination?
Prohibit discrimination
How is a trade fixture different from fixture?
A trade fixture has been temporarily affixed to a landlord’s real property in order to conduct business. A tenant may detach or remove before or upon, surrender of the leased premises
Growing plants maybe either real or personal property. How are they differentiated?
Plants and crops that naturally grow and does not need anyone’s labor is considered real property while those that require human intervention and labor are called emblements and are considered part of personal property.
Which government entity is a primary regulatory entity of the real estate business?
State government
*is primary regulatory entity of the
How do you surface rights apply?
To the real estate contained within the surface boundaries of the parcel
If a land owner has sold to an oil company his or her rights to any oil or gas found in the land, who is the owner of all other minerals found on the land?
The landowner
