Level 1 Chapter 4: The Characteristics of Land

Question 1

Land’s Unique Physical Characteristics (3)

Answer 1

1. Indestructible 2. Immobile 3. Non-homogeneous

Question 2

Forces of Nature

Answer 2

Natural factors that can affect the physical characteristics of land. 1. Accession 2. Accretion 3. Erosion 4. Reliction 5. Avulsion. Their occurrence affects the value of a property, estate ownership, and title.

Question 3

Accession

Answer 3

Force of nature. The right to all that one’s own property produces, including that which is added, either naturally or by human action, to the property already owned. Example: Let’s say strawberry plants sprout in your backyard. You didn’t plant them, but you still have the right to pick them, eat them, or make them into strawberry shortcake

Question 4

Accretion

Answer 4

Force of nature. The process that results in the gradual increase in land area through deposits of soil by natural forces. Example: Soil is deposited over time on the shore banks and deltas of a river. (The soil that gets deposited is also referred to as alluvion.)

Question 5

Erosion

Answer 5

Force of nature. The gradual loss of land over time. This most often happens when bodies of water wash away bordering land.

Question 6

Reliction

Answer 6

Force of nature. A gradual increase in land area when water gradually withdraws.

Question 7

Avulsion

Answer 7

Force of nature. The sudden loss of land by flood or when a stream or river changes course. Because it’s a sudden change, no title is lost. Avulsion is caused by water.

Question 8

Land’s Economic Characteristics

Answer 8

Set it apart from personal property. Includes: 1. Scarcity 2. Situs 3. Modification 4. Fixity 5. Illiquidity

Question 9

Scarcity

Answer 9

Economic characteristic that informs the economic principle of supply and demand. The supply of land will never increase, but the demand for land will increase as the population grows. And this is because land is scarce.

Question 10

Situs

Answer 10

The economic significance of a property’s location. Referring to the preferences people have for certain areas. Situs takes into account not only the geographical location of property, but also the economic qualities of that area that make it more or less desirable.

Question 11

Modification

Answer 11

The fact that the value of land can be affected by human-made changes to the land. Modifications often affect situs.

Question 12

Fixity

Answer 12

Real estate exists in a fixed location and cannot be moved. Describes this truth about land (it can’t be moved) from an economic viewpoint.

Question 13

Illiquidity

Answer 13

Difficulty of converting an asset to cash without loss of value. Example: If you owned property that appraised at $250,000, given the right amount of time you would probably be able to sell it for that amount. However, if I told you that you HAD to sell the property by end of day tomorrow, you’d have to drop the price significantly to get someone to commit that quickly.