Chapter 3 - Unit 1 Flashcards
Summary:
What five economic characteristics affect the value of land in a marketplace?
Demand Utility Scarcity Transferability Situs
Summary:
What are the 3 physical characteristics of land?
Immobility
Indestructability
Heterogeneity
Summary:
Explain the differences between the legal concept of land and real estate.
Land encompasses the surface of the earth, whatever is below the surface, whatever is above the surface, and every natural thing that is permanently attached to the earth.
Real Estate includes all this, plus all man-made things that are permanently attached to the earth.
Summary:
Define special purpose real estate and give an example.
Property that has a unique use to the persons who own and use it, such as churches, hospitals, schools and government buildings.
Littoral rights concern properties _________________.
abutting bodies of water that are not moving, such as lakes and seas.
Owners of properties abutting a navigable, non-moving body of water, enjoy the ______________, but do not own the water or the land beneath the water. Ownership extends to the high-water mark of the body of water.
littoral right of use
The legal premise underlying the definition of littoral rights is that a lake or sea is a _______ body of water. And therefore, public property owned by the state.
navigable
A body of water entirely contained within the boundaries of an owner’s property is not ______. In such a case, the owner would _________________________
navigable
own the water as well as the unrestricted rights of usage.
Littoral rights attach to the property, so what happens when the property is sold?
The littoral rights transfer with the property to the new owner.
Riparian rights concern properties abutting _______________________________.
flowing water, such as streams and rivers.
If a property abuts a stream or river, the owner’s riparian rights are determined by ________________.
whether the water is navigable or not navigable.
Riparian Rights: If a waterway in question is _______, it is considered to be a public easement.
navigable
In the case of a flowing, navigable body of water - the owner’s property extends to ____(A)_______ . The state owns the land _____(B)______. However, the landowner has right to all accretions, which is _____(C)_________.
A. the water’s edge
B. beneath the water
C. the land resulting from the soil build-up caused by the natural action of the river or stream
If a property abuts a _______, ________ body of water, the owner enjoys unrestricted use of the water and owns the land beneath the stream to the stream’s midpoint.
flowing, non-navigable (stream)
One’s riparian rights to use flowing water are subject to the conditions that:
1.
2.
3.
- the usage is reasonable and does not infringe on the riparian rights of other owners downstream.
- the usage does not pollute the water.
- The usage does not impede or alter the course of the water flow.
Littoral =
Riparian
Littoral = water that is not moving
Riparian = water that is moving
__________ is water located below the earth’s surface, below the saturation point, in underground geological formations called aquifers.
Groundwater
Rule of capture -
Concerns groundwater; allows a property owner to pump a regulated amount of water.
Water processes can change the land boundaries. Major processes recognized by law in various states include: 1. 2. 3. 4. 5.
- Accretion
- Erosion
- Avulsion
- Reliction
- Alluvion
An increase of land created by deposits of soil by the natural flow of water =
Accretion
A gradual loss of land caused by flowing water or wind. =
Erosion
A loss of land by a sudden and large-scale change in water flow. The owner still owns the land underlying the water’s previous location. =
Avulsion
Increase in land due to the receding of water from the shore =
Reliction
The actual soil, rock and other matter moved by flowing water which results in accretion =
Alluvion
Summary:
Name the 5 major rights included in the bundle of rights to real estate
- possess
- use
- transfer
- encumber
- exclude
Summary
What is the “right to use” and describe its limitations.
The right to use a property refers to the right to use it in certain ways, such as mining, cultivation, landscaping and building on the property. The right is subject to the limitations of local zoning and the legality of the use. One’s right to use may not infringe on the rights of others to use and enjoy their property.
Summary
What is the difference between littoral rights and riparian rights?
Littoral rights concern properties that border bodies of water that are not moving.
Riparian rights concern properties that borer moving water such as streams or rivers.
The primary criterion for distinguishing real from personal property is _______________.
whether the item is permanently attached to the land, or to structures attached to the land.
A personal property item that has been converted to real property by attachment to real estate is called a _____.
fixture
When an owner sells the real property, the buyer acquires rights to all fixtures. Fixtures NOT included in the sale, must be ____________.
itemized and excluded in the sale contract.
Real v. Personal Property criteria
- Example - apartment renter installs an alarm system….
Intention
Real v. Personal Property criteria
- Example - house keys, garbage compactor
Adaption
Real v. Personal Property criteria
- Example - window-unit air conditioners
Functionality
Real v. Personal Property criteria
- If a tenant installs something in order to conduct business
Relationship of Parties
Real v. Personal Property criteria
- The listing of an item in the contract as a personal property item or a fixture
Sale or lease contract provisions
Another word for trade fixtures
Chattel fixtures
Plants and crops that grow naturally, without requiring anyone’s labor or machinery, are considered __(A)____.
Plants and crops requiring human intervention and labor are called __(B)_____ and are considered ___(C)____.
A. real property
B. Emblements
C. Personal property
The classification of an item of property as real or personal is not necessarily fixed. The classification may be changed by the process of _________.
A. Conversion
The conversion of real property to personal property by detaching it from the real estate, such as by cutting down a tree or removing an antenna from a roof.
Severence
The act of converting personal property to real property by attaching it to the real estate
Affixing or attachment
Mobile Home considerations to determine if it’s personal property or real estate:
- Where does it sit?
- What does the seller say? - is it attached to the land
- Is a Title available?
- What state?
Under the _______ system, individuals are entitled to own property without proprietary control by the king/government.
allodial
Government entities regulate the following aspects of real property interests:
1.
2.
3.
4.
5.
6.
- The bundle of rights
- Legal descriptions
- Financing
- Insurance
- Inheritance
- Taxation
In regulation real property rights, the federal government is primarily concerned with the broad standards of _____(A)______, ____(B)______, ___(C)_____, and __(D)________.
A. Real property usage
B. Natural disaster
C. Land description
D. Discrimination
The federal government ______________ levy real estate taxes.
does not
What is the primary regulatory entity of the real estate business?
State governments
4 ways state laws regulate the real estate business:
- Establish license laws and qualifications
- Establish real estate commissions and oversee licensees
- Influence environmental control
- Play a role in defining how real estate may be owned, transferred, encumbered and inherited.
Do states have the power to levy real estate taxes?
Yes, but they generally pass this power to the local government.
County and local government regulation focuses on:
1.
2.
3.
- land use control
- control of improvements
- taxation
Do county and local governments have the right to levy real estate taxes?
Yes, along with school districts and other local jurisdictions
Zoning laws regulate the following:
1.
2.
3.
4.
5.
6.
7.
- The use of the land
- Lot sizes
- Types of structures permitted
- Building heights
- Setbacks
- Density (the ratio of land area to improved area)
- Types of animals that can or cannot be kept on a property.
The judicial system exerts an influence on real estate ownership and use through decisions based on __(A)_____ and __(B)_____, as distinguished from statutory law.
A. Case law
B. Common law
Summary
What are the legal tests that determine if an item is a fixture? 1. 2. 3. 4. 5.
- Method of attachment
- Adaptability
- Intention
- Existence of an agreement
Summary
Name the aspects of real property interests that are regulated by government. 1. 2. 3. 4. 5. 6.
- Bundle of rights
- legal descriptions
- financing
- insurance
- inheritance
- taxation
Summary
Describe the kinds of interests regulated at each level of government
Federal - broad standards of usage, natural disaster, environment, discrimination, land description, lending
State - licensing, regional usage, ownership and inheritance
Local - specific land use control; taxation
Judicial - case law and common law applications to ownership and use
Summary
What does land include:
1.
2.
3.
4.
- minerals beneath the earth’s surface
- water on or below the earth’s surface
- air above the surface
- natural things permanently attached to the earth
Summary
A parcel of land -
a portion of land delineated by boundaries
Summary
Physical characteristics of land
1.
2.
3.
- Immobility
- Indestructability
- Heterogeneity
Summary
Economic characteristics of land: 1. 2. 3. 4. 5.
- Demand
- Utility
- Scarcity
- Transferability
- Situs
