Practice Flashcards
Acquiring title to additions or improvements to real property as a result of the annexation of fixtures
Accession
Rights to use the space above earth
Air rights
Method of converting personal property into real property
Annexation
anything, tangible or intangible, associated with the property, is connected to the property although not necessarily a direct part of it.
Appurtenance
Legal document that transfers personal property
Bill of sale
the legal rights of ownership that attach to ownership of a parcel of real estate
Bundle of Legal Rights
Another term for items of personal property such as: chairs, tables, clothes, money, bonds, and bank accounts. Also includes trade fixtures.
Chattels
Written instrument that when executed and delivered conveys title to or an interest in real estate
Deed
Crops that require annual cultivation and are considered as personal property.
Emblements
Item of personal property that has been converted to real property by being permanently affixed to the realty
Fixture
Geographic location of any given parcel of land can never be changed. It is always fixed.
Immobility
any artificial addition to land that may make property more/less better-looking, more useful, or more/less valuable.
improvement
the earth’s surface extending downward to the center of the earth and upward to infinity. Includes what is on the surface and underlying soil.
land
___ includes objects that are naturally attached to earth’s surface, and subsurface
Land
Dwellings that are built off site and trucked to a building lot where they are installed or assembled.
Manufactured housing
___ includes modular, panelized, precut, and mobile homes.
Manufactured housing
___ usually refers to factory-built housing constructed before 1976
mobile homes
property that is movable and not affixed to or associated with the land.
personal property
___ includes all property except real property
personal property
Land at, above, and below the earth’s surface, plus all things permanently attached to it.
Real Estate
___ includes natural land along with all human made improvements.
Real Estate
Illinois state law enacted to protect the public from fraud, dishonesty, and incompetence in the purchase and sale of real estate.
Real Estate License Act of 2000
also known as “the Act”
Real Estate License Act of 2000
The interests, benefits, and rights that are automatically included in the ownership of land and real estate.
Real Property
___ includes land, real estate, and a bundle of legal rights.
Real Property
___ includes the surface, subsurface, airspace, any improvements, and the bundle of legal rights.
Real Property
What 5 rights do real property owners have according to the bundle of legal rights?
Right of control
Right of disposition
Right of enjoyment
Right of exclusion
Right of possession
The right of ___ allows the owner to transfer the property as one sees fit
Disposition
The right of ___ allows the owner to utilize the property to the full extent allowed by law and without interference
Enjoyment
Which right allows owners to not welcome certain individuals and parties on their property, with the exception of those who have the right to access the property?
Right of exclusion
If a property owner does not want a utility meter reader entering their property, do they have the legal right to exclude them from entry?
No
The right of ___ grants owners the right to hold the property.
Possession
Changing an item of real estate to real property by detaching it from the land
Severance
Cutting down a tree would be an example of ___
Severance
___ is a term that refers to people’s preferences for given areas
Situs
Because of ___, the unique quality of preferences results in different values for similar units.
situs
minerals and substances that lie far below earth’s surface
Subsurface
___ Rights are the right to the natural resources lying below the earth’s surface
Subsurface
___ Rights are the right to use the surface of the earth
Surface
An article of personal property installed by a tenant on a commercial property under the terms of a lease and removable by the tenant before the lease expires.
Trade fixture
___ is a physical characteristic that means that no 2 parcels of land are ever exactly the same. Characteristics of each property will always differ from those of every other.
Uniqueness
Water is included in the definition of ___.
Land
Air space is included in the definition of ___.
Land
Trees and other plants that are permanently attached to the ground are included in the definition of ___.
Land
___ includes land plus permanent human made additions & improvements
Real estate
Includes appurtenance, real estate, and the bundle of legal rights
Real Property
___ is defined as the earth’s surface extending downward to the center of the earth and upward to infinity.
Land
___ is a broad term that includes land, real estate, and any rights associated with these.
Real Property
A house built on top of land would be considered to be a(n) ___.
Improvement
If you own a condo on the 23rd floor of a building, you would own the ___ rights of that floor.
Air
The right of ___ gives the property’s owner the authority to decide whether they will sell their property, or transfer ownership to their children according to their will
Disposition
Betty does not want her sister visiting her property. Her right of ___ permits her to tell her sister that she is not welcome to visit her.
Exclusion
If you are the owner of a residential property, does your Right of Control permits you to operate a McDonalds franchise on the property if you wish to do so? Why or why not?
No, because residential property is not commercial property.
___ refers to a geographic location of land.
Situs
A growing tree is considered as real estate until the owner cuts it down, this is because of ___.
Severance
Chattels are another term for ___.
Personal Property
___ are annually cultivated crops that are considered as personal property.
emblements
___ Rights are the rights to use the space above the earth’s surface.
Air
___ are personal property that has become real property.
Fixtures
A house key is…
A fixture
___ includes a bundle of legal rights
Real Property
An article owned by a tenant and attached to a rented space of a building or used in conducting a business is a(n) ___.
Trade fixture
Property that is not movable and is affixed to or associated with the land
Real property
The practice of real estate in Illinois is governed by the…
Real Estate License Act of 2000
Laws passed by Congress are not among the sources of law affecting real property. True or false?
False
Real estate licensees are obligated to be familiar with the real estate laws and licensing requirements in the states in which they practice. True or false?
True
A homeowner is building a new enclosed front porch on his home. A truckload of lumber has been left on his driveway for use to build the porch. At this point, the lumber would be considered as what type of property?
Personal property
Scarcity, improvements, and location best describe the ___ characteristics of real estate.
Economic
What are the 3 economic characteristics in real estate?
Scarcity
Improvements
Location
A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. The real estate characteristic associated with her concern is…
Area preference
Intent of the parties, method of attachment, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is…
A fixture or personal property
The buyer and seller of a home are debating whether a certain item is real or personal property. The buyer says it is real property and should convey with the house; the seller says it is personal property and would not convey without a separate bill of sale. In determining whether an item is real or personal property, which of the following would a court NOT consider?
a) Any relevant agreement of the parties in their contract of sale
b) Whether the item is clearly adapted to the real estate
c) Whether its removal would cause severe damage to the real estate
d) The cost of the item when purchased
The cost of the item when purchased
According to the law, a trade fixture is usually treated as ___.
Personal property
An owner decides to sell her house and takes the antique front door with her when she moves. In the absence of any provision in the contract, is the owner allowed to remove the door? Why or why not?
No, because the door is a fixture
An owner decides to sell her house and takes the antique front door with her when she moves. In the absence of any provision in the contract, she is not allowed to do this because this act of ___.
Severence
Parking spaces in multiunit buildings are classified as ___.
Appurtenances
Water rights are classified as ___.
Appurtenances
A person buys a parcel of natural forest. The person then immediately cuts down all the trees and constructs a large shed out of old sheets of rusted steel for storing turpentine, varnish, and industrial waste products. The owners action constitutes ___ of the property
improvement
Installed lighting units are normally considered as real estate ___.
fixtures
A man inherited a farm from his uncle. As a new owner, the first thing he did with the vacant property was to remove all the topsoil, which he sold to a landscaping company. He then removed a thick layer of limestone and sold it to a construction company. Finally, he dug 40 feet into the bedrock and sold it for gravel. When the farm owner died, he left the farm to his daughter. Which of these statements is true?
a) The man’s estate must restore the land to its original condition
b) The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth
c) The daughter owns the gravel, limestone, and topsoil, no matter where it is
d) The daughter inherits nothing because the farm no longer exists
The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth
Patio furniture would be considered as ___.
Personal property
When an owner of real estate sells the property to someone else, which of the “sticks” in the bundle of legal rights is she using?
Disposition
___ includes land and all things that are permanently attached.
Real estate
___ is property that is movable.
Personal property
A bookstore owner rents space in a commercial building. The bookstore has large tables fastened to the walls where customers are encouraged to sit and read. Shelves create aisles from the front of the store to the back. The shelves are bolted to both the ceiling and floor. The shelves and tables are considered as…
Trade fixtures
When must trade fixtures be removed from a leased property?
Before the lease expires
Who is responsible for damages caused by removal of a trade fixture upon expiration of the property’s lease?
The tenant
Which is an example of appurtenance?
a) Trade fixture
b) Personal property
c) Water rights
d) Fixture
Water rights
___ is considered the most important characteristic of land.
Location
annexation is…
changing personal property into real property
A deed is conveyed to transfer ownership of ___.
Real property
A bill of sale is conveyed to transfer the ownership of ___.
Personal property
When is the standard date for possession of farmland in Illinois to be transferred following a sale?
March 1
If a landlord wishes to break the lease with a tenant for farmland in Illinois, notification must be given by what date?
November 1
What is severence?
Turning an item of real property into personal property
Picking an apple off of an apple tree would be an act of ___.
severance
What are the 3 physical characteristics of real estate?
Uniqueness
Immobility
Indestructibility
Bob is a landowner who sells the rights to any oil and gas found beneath his farm to an oil company. Later, he sells the remaining interests (the surface, air, and limited subsurface rights to John, reserving the rights to any coal that may be found in the land. John sells the remaining land to Mike but retains the farmhouse, stable, and pasture. After these sales, who owns all of the coal?
Bob
Bob is a landowner who sells the rights to any oil and gas found beneath his farm to an oil company. Later, he sells the remaining interests (the surface, air, and limited subsurface rights to John, reserving the rights to any coal that may be found in the land. John sells the remaining land to Mike but retains the farmhouse, stable, and pasture. After these sales, who owns the oil and gas?
The oil company
Bob is a landowner who sells the rights to any oil and gas found beneath his farm to an oil company. Later, he sells the remaining interests (the surface, air, and limited subsurface rights to John, reserving the rights to any coal that may be found in the land. John sells the remaining land to Mike but retains the farmhouse, stable, and pasture. After these sales, who owns the farmhouse, stable, and pasture?
John
