Module 2 The Nature of Real Estate Flashcards
An appraiser has observed a room air conditioner mounted in a wall opening of the dwelling that is being inspected. What property type best categorizes the wall AC unit?
Room air conditioner mounted in a wall opening:
A) Real estate
B) Fixture
C) Personal property
D) Real property
B) Fixture
Feedback: Correct. See page 26 of your Course Handbook and the online content under the heading of Real Estate, Personal Property and Real Property. This is personal property that becomes real estate, therefore it is a fixture. “Fixture” is the term we are looking for to convey the process from personal property to real estate. If you chose “real estate” as your answer, that would be technically true but not as specific as “fixture.”
An appraiser has observed a portable hot tub that is now permanently enclosed in a deck and has underground plumbing connected to the tub. What category should the appraiser use for the hot tub that best identifies the property type?
A) Fixture
B) Real property
C) Real estate
D) Personal property
A) Fixture
Feedback: Correct. See page 25 of your Course Handbook and the online content under the heading of Real Estate, Personal Property and Real Property. Yes, this is a tough question. The portable aspect makes this personal property, but then it became real estate by its attachment. The transition would indicate that “fixture” is the best response.
Remember that fixtures are real estate, so when we identify an item as a fixture it is adding greater specificity to type of real estate.
A portable dishwasher located in a townhouse unit is best identified as what type of property?
A) Real property
B) Real estate
C) Fixture
D) Personal property
D) Personal property
Feedback: Correct. See page 25 of your Course Handbook and the online content under the heading of Real Estate, Personal Property and Real Property. The word “portable” conveys the sense that this is personal property and not permanently attached. In contrast, a built-in dishwasher would be considered real estate.
Personal property that is installed in a permanent manner, and is intended for use in a business on leased property is best classified as what property type?
A) A trade fixture
B) Personal property
C) A fixture
D) Intangible property
A) A trade fixture
Feedback: Correct. See page 26 of your Course Handbook and the online content under the heading of Real Estate, Personal Property and Real Property. Trade fixtures are personal property that is used by tenants in leased property.
Shrubbery installed on the site of a lodging facility is best described as what type of property?
A) Real estate
B) Real property
C) Fixture
D) Personal property
A) Real estate
Feedback: Correct. See page 24 of your Course Handbook and the online content under the heading of Real Estate,
Personal Property and Real Property. Real estate is land and all things that are a natural part of the land, such as trees and minerals. Once the shrubbery is installed, it is viewed as real estate rather than as fixtures.
What characteristic makes land unique?
A) No two parcels have the same soil composition
B) No two parcels have the same owners
C) No two parcels have the same tax levies
D) No two parcels can occupy the same space on the face of the earth
D) No two parcels can occupy the same space on the face of the earth
Feedback: Correct. See page 19 of your Course Handbook and the online content under the heading of Land Basics. Land is immobile and has a unique location.
When an appraiser values real property, what is actually being valued?
A) All interests, benefits, and rights inherent in the
ownership of real estate
B) Property that is not artificial
C) Any and all buildings on the subject site
D) The physical land and appurtenances affixed to the land
A) All interests, benefits, and rights inherent in the ownership of real estate
Feedback: Correct. See page 27 of your Course Handbook and the online content under the heading of Real Estate, Personal Property and Real Property. Appraiser’s value the interests in real property.
What is the concept within land theory that suggests that ownership in land includes complete possession from the center of the earth to the ends of the universe?
A) The land appurtenant theory B) Land economics C) The inverted pyramid Feedback: Correct. See page 20 of your Course Handbook and the online content under the heading of Fundamental Land Rights. This concept was covered under the section on Fundamental Land Rights. D) The space time continuum
C) The inverted pyramid
Feedback: Correct. See page 20 of your Course Handbook and the online content under the heading of Fundamental Land Rights. This concept was covered under the section on Fundamental Land Rights.
Retrieving minerals located in the ground are connected to what type of land rights?
A) Suprasurface rights
B) Air rights
C) Subsurface rights
D) Riparian rights
C) Subsurface rights
Feedback: Correct. See page 20 of your Course Handbook and the online content under the heading of Fundamental Land Rights. Subsurface rights include mineral rights and their retrieval
A property owner’s solar panel system is affected by the large shadow created from a newly constructed billboard on an adjacent property. What property right is potentially involved in this situation?
A) Suprasurface rights
B) Water rights
C) Surface rights
D) Subsurface rights
A) Suprasurface rights
Feedback: Correct. See page 21 of your Course Handbook and the online content under the heading of Fundamental Land Rights. Air rights include solar access.
Identify 3 major divisions of land rights:
Air, Surface and Subsurface
- Air - the right to undisturbed use and control of designated air space above a specific land area with stated elevations
- Surface - rights include land, water, and anything attached to the land either naturally of place by human hands, Riparian and Littoral
- Subsurface - rights to the use and profits of the underground portion of a designated property. Right to extract coal, oil, minerals, gas, and water. Right to construct and maintain tunnels, subways, sewers, basements.
Identify 5 major rights in the real estate bundle of rights
Bundle of rights - The total range of ownership interest in real property. An owner that possess all the interest in the bundle of rights has the most complete ownership.
- Possession
- Transfer
- Lease
- Mortgage
- Improve
Recognize the distinctive differences among land, real property, real estate, and personal property
Land- the earth’s surface, both land and water and anything that is attached to it whether by the course of nature or human hands. All natural resources in their original state
Real Estate - land and all things that are a natural part of the land such as trees and minerals. It includes appurtenances
Real Property - The interest, benefits and rights inherent in the ownership of real estate. Real estate is the land, real property is the interest and rights identified in the tract of land
Identify significant characteristics of land
- Land is immobile and each parcel is unique in its location and composition
- Land is durable as a long term asset but the supply of land is finite
- Land is not only an economic concept but also a value commodity to people
Swimming pool in the ground
Real Estate
