MRE_Chapter2 Flashcards
Land
The earth’s surface extending downward to the center of the earth and upward to infinity, Including things permanently attached by nature such as trees and water
Real Estate
The Land and all thing permanently attached to it by either nature or people(improvements)
Real Property
Aka “realty” contains: Real Estate + Interests + Benefits + Rights inherent in the ownership of real estate
Bundle of Rights
- Possession – The right to occupy the premises 2. Control – The right to determine certain interests for others 3. Enjoyment – Possession without harassment or interference 4. Exclusion – Legally refusing to create interests for others 5. Disposition – Determining how the property will be disposed off
Appurtenance
Right or privilege associated with the property, although not necessarily a part of it
Surface Rights
Landowner’s rights to the exterior or upper boundary of the land (except those restricted by the mineral owner’s rights) and water and other substances (except those defined as minerals) below it.
Subsurface Rights
Includes rights to Minerals and other substances under the earth’s surface. It can be sold to others same way as surface rights & independent of surface ownership
Air Rights
Right to control, occupy or use the vertical space (air space) above a property, subject to necessary and reasonable us by neighbor(s) and others (such as aircraft). Distinct Properties of Air rights are: 1. Can be bought 2. Can be sold 3. Can be transfered
Water Rights
Water rights are special common-law rights held by owners of land adjacent to rivers, lakes or oceans and restrictions of land ownership
Personal Property
Aka “Personalty”, is the property that can be owned and that does not fit the definition of real property Important distinction is personal property is movable.
Chattels
Items of personal property, such as chairs, tables, clothing, money, etc
Fructus Naturales
Trees , perennial shrubbery and grasses not requiring annual cultivation are real property
Fructus Industriales
Aka “emblements” , Crops with a growing season of less than a year (annuals) are personal property
Emblements
Aka “Fructus Industriales” , Annually cultivated crops such as fruit , vegetables & grains
Severance
An item of real property can become personal property
Annexation
An item of personal property my become real estate. Construction materials routines become real estate
Fixtures
Is a personal property that has been affixed to land or a building becomes part of the real property such as Kitchen cabinets, light fixtures , plumbings , etc
MARIA
M-Method of Annexation A-Adaptation to real Estate R- I - Intent A – Agreement
Trade Fixtures
An article owned by a tenant and attached to rented space or building of use in operating a business 1. Tenant’s personal property 2. Must remove on or before last of lease 3. Not removed – becomes landlord’s real property
Economic Characteristics of Real Property or LIPS
SIPL: L-Location or area preference I-Improvements: They can affect both the improved parcel & surrounding parcels P-Permanence of Investment: Improvements are considerer to create long term investments S-Scarcity: Although the total supply of land is not in short supply, land of a particular quality or location may be limited
Physical Characters tis of real estate / IIU
Immobility : Indestructibility Uniqueness
Laws Affecting Real Estate
- Law of contracts 2. General property law 3. Law of agency 4. State real estate license law 5. Federal regulations 6. Federal, state and local tax laws 7. Zoning and land use laws 8. Environmental regulations
