Chapter 2 Flashcards
Land, Real Estate, And Real Property
The terms:
Land - no improvements .
Real Estate- land with improvements.
Real property- land with improvements plus rights.
Real Property
Includes the surface, subsurface, airspace, any improvements, and the bundle of legal rights. Is the broadest term of all, it includes both land and real estate
Land
Is defined as the earth’s surface extending downward to the center of the earth and upward to infinity. Also underlying soil.
Real Estate
Is defined as land at, above, and below the earth’s surface, plus all things permanently attached to it.
An Improvement
Is any artificial addition to land , such as building or a fence.
An appurtenance
Is anything, tangible or intangible, associated with the property, although not necessarily a direct part of it. Typical appurtenances include parking spaces in multi unit buildings, septic tanks, easements, water rights, and other improvements.
Subsurface rights
Are the rights to the natural resources lying below the earth’s surface.
Surface rights
The right to use the surface of the earth
Air rights
The rights to use the space above the earth may be sold or leased independently, provided those rights have not been preempted by law.
Economic Characteristics of Real Estate
-Scarcity
-Improvements
-Permanence of investment
-Location
What are the seven Characteristics of Real Estate that define its nature and affect its use
-Scarcity
-Improvements
-Permanence of Investment
-Location(most important)
-Immobility
-Indestructibility
-Uniqueness
Scarcity
Land is not usually considered a rare commodity, but only a quarter of the earth’s surface is dry land; the rest if water…. The supply in a given location iof a particular quality is generally considered limited.
Improvements
Building an improvements on one parcel of land can affect the lands’s value and use, as well as that of neighboring tracts and whole communities
Permanence of Investement
The capital and labor used to build an improvement represent a large fixed investment.
Location
This economic characteristic, sometimes called SITUS, does not directly refer to a geography location but rather to people’s preferences for given areas(Location is the most important economic characteristics of land.
Immobility
Land cannot be moved
Indestructibility
Also land is indestructible
Uniqueness
No two parcels of and are ever exactly the same.
OWNERSHIP OF REAL PROPERTY
Bundle of legal Rights:
-Disposition
-Enjoyment
-Exclusion
-Possession
-Control
Bundled of Legal Rights….continued
Right of possession
Right to control the property (within the framework of the law)
Right of enjoyment ( that is, to used the property as the owner wishes, within the framework of the law)
Right of exclusion (to keep others from entering or using the property) and
Right of disposition( to sell, will, transfer, or otherwise dispose of or encumbered the property).
Personal Property:
Property that is movable and not affixed to or associated with the land.
Chattels
Are items of personal property, including such tangibles as chairs, tables, clothing, monies, bonds, and bank accoounts
Manufactured Housing
Is defined as dwelling that are built off site and trucked to a building lot where they are installed or assembled.
What are emblems?
Annually cultivated crops such as wheat, corn, vegetables, and fruit.
When is farmland customary to transfer
March 1-it is also customary for the buyer to assume full payment of the current year’s tax bill without proration.
Severance
An item of real property can become personal property. For example, a growing tree is real estate until the owner cuts it down, severing it from the property.
What is the term used to change personal property to real property called?
Annexation
Fixtures
Is personal property that has been so affixed to gland or a building that by law, it becomes part of the real property.
Trade Fixtures (chattel fixture)
A special category of fixture includes property used in the course of business.
Accession
Is when the tenant doesn’t not remove the trade fixtures by the time the lease id up, then personal property “turns into real property”
What are the seven sources of law.
- US Constitution
- Laws passed by Congress
- Rules of the regulatory agencies
- State Statues
- Local ordinances
- Common law
Another term for personal property is
Chattels
Which of these is considered the MOST important characteristic of land?
Location
When an owner of real estate sells the property to someone else, which of the “sticks” in the bundle of legal rights is she using?
Disposition
Which of these BEST describes the economic characteristics of real estate
Scarcity, improvements, and location.
According to the law, a trade fixture is usually treated as
Personal
Which of these is considered the MOST important characteristic of land?
A. Air rights.
B. Permanence
C. Subsurface rights
D. LOCATION
D
Another term for personal property is
Chattels
When an owner of a real estate sells the property to someone else, which of the “sticks” in the bundle of legal right is he using?
A. Exclusion
B. Legal enjoyment
C. Control
D. DISPOSITION
D
A bookstore rents space in a commercial building. The books store has large tables fostered to the wall where customers are encouraged to sit and read. Shelves create aisles from the front of the store to the back. The shelves are bolted to both the ceiling and the floor. Which of these BEST characterizes these tables and shelves?
The shelves and the tables are trade fixtures and must be removed before the bookstore’s lease expires; the tenant is responsible to the landlord for any damage that their removal causes the premises.
Which of these BEST describes the economic characteristics of real estate?
A. Scarcity, improvement, and location
B. Location, uniqueness, and Indestructibility
C. Scarcity, immobility, and improvement
D. Attachment, location, and improvement
A
An owner decides to sell her home and takes the antique front door with her when she moves, In the absence of any provision in the contract, is the owner allowed to remove the door?
A. No, this act of severance is not allowed and time of selling because the door is a fixture.
A homeowner is building a new enclosed front porch on his home. A truck load of lumber has been left in his driveway for the use in building the porch. At this point, the lumber is considered
Personal property- its not attached to the home-not trade fixture, its not a business
The phrase bundle of legal rights is property included in
A. The definition of real property
B. A legal description
C. Real estate transactions.
D. Leases for less then a year.
A
Which of these is an example of an appurtenance?
A. Personal Property
B. Water rights
C. A fixture
D. A trade Fixture
B
All of these rights are included in the right to control ones’s property EXEPT
A. Sell property to a neighbor
B. Erect “No Trespassing” signs.
C. Enjoy profits from its ownership.
D. Exclude utility meter readers
D
According the law, a trade fixture is usually treated as
A. Fixture
B. An easement
C. Personality
D. A license
C. Personality
A buyer is interested in a house that fits most of her needs, but its located in a busy area where she is not sure she wants to live. The real estate characteristics associated with her concern is
A. Physical deterioration
B. Area preference
C. Permanence of investment
D. Immobility
B. Area of preference
Which of these is considered personal property?
A. Wood burning fireplace
B. Awnings
C. Patio furniture
D. Bathtubs
C. Patio furniture
Characteristics of Real Property
Scarcity
Improvements
Permanence of Investment
Location the most important of all
Physical Characteristics
Immobility
Indestructibility
Uniqueness
Seven Sources of Law
-Us constitution
-Laws passed by congress
-Rules of the regulatory agencies
-State Constitutions
-State Ordinances
-Common Law
