N. Real Property Characteristics, Legal Descriptions, and Property Use Flashcards
Bart just toured his fourth patio home of the day. To help him remember what he saw in each one, he’s making notes about décor, updates, and inclusions that will stay with the property. Which of the following items is NOT considered personal property and would therefore stay with a home?
A. The chimenea on the back patio
B. The area rug in the dining room
C. The banker’s lamps in the den
D. The chandelier in the foyer
D. The chandelier in the foyer
Anything that is built in is likely real property. Banker’s lamps are simply plugged into outlets, so they are considered personal property. Any overhead light fixtures, however, are usually hardwired in and are thus considered part of the real property.
Which of the following is NOT one of the five tests of a fixture?
A. Method of accountability
B. Agreement of the parties
C. Relationship of the parties
D. Adaptability of the item
A. Method of accountability
One mnemonic you can use for determining whether something is a fixture is the MARIA acronym. The five tests are: method of annexation, adaptability of item, relationship of the parties, intention in item placement, and agreement of the parties. When it comes to annexation and adaptability, remember that these are relative to the item you’re considering. Annexation basically means how it’s attached to the land or structure, and adaptability refers to whether removing the item will change how the land is used. When you look at the answer options here, the only one that isn’t on the MARIA list is option A, method of accountability. Hopefully you remembered to use your MARIA mnemonic: method of annexation, adaptability of item, relationship of the parties, intention in item placement, and agreement of the parties.
Beth is considering buying the one and only geodesic dome in her town and turning it into a writer’s retreat. The price is a good bit more than she wanted to pay, and the appraiser is having trouble finding good comparables. What characteristic of land has likely driven up the price of the property?
A. Immobility
B. Indestructibility
C. Scarcity
D. Uniqueness
D. Uniqueness
First, determine whether the answer options are actually physical characteristics of land or whether they’re economic characteristics. Remember there are four economic characteristics and three physical characteristics, so one of these must be an economic characteristic. Scarcity of land relates to economics, so option A isn’t the correct answer. Next, think about whether a geodesic dome is immobile, indestructible, or unique. You could tear down or move a geodesic dome, so options A and B aren’t right. A geodesic dome is definitely unique, so option D is the correct answer.
Sander and Ginny bought an old industrial site with plans to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they’ve made a great investment because the land is in great shape. This reflects which physical characteristic of real property?
A. Immobility
B. Improvements
C. Indestructibility
D. Uniqueness
C. Indestructibility
Let’s run through these answer options. Immobility addresses location, location, location. It basically says that the location of a piece of property can never change. In Sander and Ginny’s case, it isn’t the location that has them so excited. The next characteristic, improvements, is an economic characteristic that says a land’s value may increase due to the nature of the improvements. The structures are falling down on Sander and Ginny’s property, so this isn’t the defining characteristic. Indestructability of land states that improvements may deteriorate, but the land itself can’t be destroyed. That’s why Sander and Ginny bought the property: the value is in the land, and it will be there forever! Option C is the correct answer.
Sunshine Surveyors Inc. created a lot and block survey for a new residential development, Happy Acres. The first thing they did when they surveyed the new neighborhood was to reference what type of description first?
A. Plat book
B. Metes and bounds description
C. Monument
D. Map
B. Metes and bounds description
A lot and block survey is also called a plat reference system, because it’s a description recorded in a plat book. Option A, plat book, would be where the legal descriptions were recorded, but it wouldn’t be the starting place for the surveyors. A monument is a permanent physical marker, either man-made or natural, used as a starting point in the metes and bounds legal description system—not lot and block. Maps, option D, are the end result of a survey but not a starting point. The lot and block survey system always uses one of two things as a beginning reference: a rectangular government survey, or a metes and bounds description
Jenna’s closing agent has asked her to get a spot survey of the property she’s purchasing. What will this accomplish for Jenna and the closing agent?
A. It notes the location of major appliances and features inside a home.
B. It notes the location, size, and shape of any improvements on a property.
C. It decides the location of the point of beginning for a legal description.
D. It’s provides a sketch based upon driving by the property.
B. It notes the location, size, and shape of any improvements on a property.
The key to answering this question is to remember the purpose of a full land survey, compared to the purpose of a spot survey. First, neither of the survey types details anything inside a structure on the property, so option A isn’t correct. Similarly, neither a spot survey nor a full survey can be completed after a simple drive-by, so option D isn’t the right answer. Option C is worth considering, because some surveys do identify the beginning point used by several types of land descriptions. However, this is what a full land survey is used for – NOT a spot survey. Spot surveys exist only to show the location and shape of any improvements on a given property. These are often used to satisfy a requirement for an improvement location certificate (ILC).
Victor owns a starter home a few miles outside the city center, and he wants to deed it to his grandson, Tyler. According to the paperwork Victor had drawn up, Tyler will own the property as long as he continues to pay the property taxes on time. After the second late property tax payment, ownership reverts to Victor. What did Victor place on the deed?
A. Condition
B. Covenant
C. Limitation
D. Restriction
A. Condition
A covenant is an agreement between two parties, which isn’t in place here. The correct answer isn’t B. A deed restriction, also called a restrictive covenant, is placed by the developer of a given subdivision. This doesn’t involve the developer, so D isn’t the right answer. There isn’t a private control known as a limitation. Remember that a condition is a contingency placed on property ownership. Tyler’s ownership is contingent on paying his property taxes, so this scenario describes option A, a condition.
Chrissy lives in Lake Ridge Estates, a neighborhood that has a homeowner’s association and corresponding HOA dues and HOA regulations that must be followed. Chrissy isn’t allowed to put up a chain link fence for her dog because of the regulations. These HOA regulations are what kind of private land control?
A. Condition
B. Covenant
C. Restriction
D. Rule
B. Covenant
Conditions create contingencies on which property ownership hinges, and there isn’t a condition in place here. Restrictions are placed by developers rather than HOAs. And there isn’t a type of private land control called a rule. A covenant, on the other hand, is an agreement between two or more parties—in this case, between the association and the property owner.
Chrissy lives in Lake Ridge Estates, a neighborhood that has a homeowner’s association and corresponding HOA dues and HOA regulations that must be followed. Chrissy isn’t allowed to put up a chain link fence for her dog because of the regulations. These HOA regulations are what kind of private land control?
A. Condition
B. Covenant
C. Restriction
D. Rule
B. Covenant
Conditions create a contingency on which property ownership hinges, and there isn’t a condition in place here. Restrictions are placed by developers rather than HOAs. And there isn’t a type of private land control called a rule. A covenant, on the other hand, is an agreement between two or more parties—in this case, between the association and the property owner.
Allentown sits on the river, and many of its bridges are in need of repair. Which police power is Allentown administration likely to use in order to fund improvements to its bridges?
A. Condemnation
B. Escheat
C. Taking
D. Taxation
D. Taxation
For this question, all of the options are police powers. So you should start by thinking about what is needed in order to make bridge improvements. Does the city need land or property, or do they need money? In this case the city already owns the land on which the bridges sit, and they just need funds to make repairs. Condemnation, taking, and escheat all deal with taking land, so options A through C can’t be correct. Taxation is a way for a government entity to collect money, so D is the right answer.
In which of the following situations would the state be able to use its power of escheat?
A. Sam died with no will, and his son lives overseas.
B. Hannah passed away with no children and no debt, other than $83,000 left to pay on her mortgage.
C. Nadine died with no children and no debt.
D. Maury died, and his three children are upset because his estate isn’t large enough to settle all of his debts.
C. Nadine died with no children and no debt.
For a government body to use escheat, three conditions must be met: The deceased must lack a will, heirs, and creditors. In A, Sam didn’t have a will, but he had an heir. So escheat doesn’t apply. In B, Hannah had no heirs, but she did have a creditor in that she still owed money on her mortgage, so escheat doesn’t come into play. Nadine had no creditors and no heirs in C, and we don’t know about the existence of a will so we’re not sure if escheat applies. Maury in D had both creditors and heirs. The only answer that could be correct is C.
Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this?
A. Aesthetic zoning
B. Downzoning
C. Incentive zoning
D. Spot zoning
D. Spot zoning
Each type of zoning action has a very specific purpose. Aesthetic zoning, option A, is applied when a community wants all of the structures in a given area to have a similar visual look. Option B is used when an area was previously allowed high density structures but wants to reduce the density of the area. Incentive zoning is a way to grant an exception to a developer for something in return that will benefit the community. And D, spot zoning, allows one specific property to be rezoned within a different existing zone. In this case, the building Tres bought will be in an existing zoning area (light industrial) but will be zoned residential. This is spot zoning. Spot zoning is illegal in some states.
