Chapter 2 Review-What is Real Estate? Flashcards
The definition of _______ includes the surface rights, subsurface rights, and air rights.
Land
_____ _______ is defined as land and all appurtenances attached to the land.
Real Estate
_____ _______ is defined as the land, the real estate, and the rights and interest associated with the ownership.
Real Property
The ____________ _____________ of real estate are heterogeneity, immobility, and durability.
Heterogeneity means every parcel of land is unique: immobility means that ownership is transferred but not the itself: and durability means that the improvements may be destroyed but not the land.
Physical characteristics
What are the four economic characteristics of real estate?
SLIP
Scarcity
Location
Improvements
Permanence of investment
____________ means the availability of land in a particular area is finite or that there is limited availability of a particular land use, like zoning use. (ex; multifamily)
Scarcity
The _______________ added to the land and the ____________ __ ______________ made for the site development such as streets, water lines, sewer lines, etc., will increase the value of the land.
Improvements
Permanence of investment
What is another word for “location”?
Situs
Personal property, which is moveable, is sometimes called?
Chattel
Chattel comes from the French word “chatel,” which comes from the Latin word “capitale.”
What are two words used to describe “annual crops”?
which are considered personal property
Emblements or fructus industriales
A fixture is an item of personal property that by its use or attachment is considered to be real estate.
What are the four tests to determine if an item is real property or personal property?
RAID
Relationship or contract of the parties
Adaptation to the use
Intension
Degree of attachment
RAID
Personal property that is installed and used by a tenant in a trade or business is called?
trade fixture
What are the three types of “present interest” in real estate?
Fee simple absolute
Fee simple defeasible
Life estates
What are the two possible types of “future interest” in a Conventional Life Estate?
(grantor gets the property back):
(grantor names a 3rd party to receive the property)
Reversionary Interest
Remainder interest
What is the highest form of ownership recognized by the law?
Fee simple absolute
What are the two forms of fee simple defeasible estates?
*Fee simple with a special limitation
or Fee Simple Determinable
*Fee simple on a condition subsequent
Fee simple with a special limitation (or is sometimes called fee simple determinable) is characterized by the what words?
“for as long as”
Fee simple on a condition subsequent is characterized by the concept of what words?
“never to be used as”
What is the “future interest” of a “fee simple with a special limitation” called? “so long as”
…the possibility of revert
What is the “future interest” with a “fee simple on a condition subsequent” called?
…the possibility of re-entry
A _____________ ______ __________ is set up by the grantor.
Ex: A son gives property to his mother for her life.
Conventional Life Estate
A “life estate pur autre vie” means what?
A person has a life estate based on the life of a third party.
-Life of another
What are a wife’s interest in her husband’s property called?
Dower Rights
What are a husband’s interest in his wife’s property called?
Curtesy Rights
What are the three private sources for restrictions or limitations on the bundle of rights?
Restrictive Covenants
Homeowner Association Rules and Regulations
Fee Simple Defeasible Estates
Where can you find public information about each parcel of real estate?
Registry of Deeds
County Recorder’s, Clerk’s or Treasurer’s Office
City Clerk’s Office
What does CC&R’s stand for?
(These are common private limitations that run with the land…these are recorded and transferred to the next land owner)
Covenants, Conditions and Restrictions
What are the 4 government powers that regulate land use?
Police Power
Eminent Domain
Taxation
Escheat
_________ __________ gives the government the right to make and enforce laws to promote the general welfare, morals, health, and safety of the people.
Police Power
________ __________ is the right for the government to take land for a public purpose.
Eminent Domain
________________ is the process of taking the land.
Condemnation
_____________ pays for the public services, such as schools, fire dept., police dept.
Taxation
If someone dies with no will and no heirs can be found, the property will revert the state by the process of?
Escheat
