Principles - Chapter 2 Ownership of Real Property

Question 1

Ownership

Answer 1

Right to own
Exclude
right to possess and use property to the exclusion of others

Question 2

Real Property

Answer 2

Immoveable

Question 3

4 Elements of Real Property

Answer 3

Land
anything attached to the land
incidental to land
immovable by law

Question 4

Land is…

Answer 4

earth, water and air

includes: surface of earth, sky above and everything to the center of the earth

Question 5

4 rights of land

Answer 5

mineral
lateral
air
riparian/water

Question 6

Mineral rights

Answer 6

on and below land

drill for oil and gas

Question 7

Can mineral rights become personal property

Answer 7

Yes, once extracted from land

ex: drill for oil

Question 8

Lateral

Answer 8

support of land (swimming pool/retaining wall)

Question 9

Airspace

Answer 9

can’t build balcony over property line

Question 10

Water - ripparian

Answer 10

water on, under or adjacent

Question 11

Water - littoral

Answer 11

borders lakes oceans

Question 12

Accretion

Answer 12

addition of sediment to shore by flowing water

Question 13

Land that results from Accetion

Answer 13

Alluvium

Question 14

Addition of Land by removal of Water

Answer 14

Reliction

Question 15

Emblements

Answer 15

crops for production - personal property not real property

Question 16

Fixtures

Answer 16

personal property attached to land MARIA

Question 17

MARIA

Answer 17

M ethod of attachment
A daptability for ordinary use
R elationship of parties
I ntention of owner
A greement of parties

Question 18

Method

Answer 18

fixture is attached by nails, cement, screws, glue

can’t be removed without causing damage

Question 19

Adaptibility

Answer 19

ex: blinds made for windows

Question 20

Relationship

Answer 20

buyer prevails-should receive benefit of everything necessary for enjoyment of land

Question 21

Intention

Answer 21

attached bookshelf, TV built into wall

Question 22

Agreement

Answer 22

shed disclosed as not a fixture would be upheld

Question 23

Trade Fixtures

Answer 23

Dental Chair - is personal property

Question 24

Good Faith Improvers

Answer 24

Improvements made to property - can be personal property by must pay for any damage caused

Question 25

Appurtenant

Answer 25

Belonging to | Ex: easement

Question 26

Bundle of Rights

Answer 26

Possess, Use, Encumber, Dispose, Exclude

Question 27

Severable

Answer 27

Separate one right from another

Question 28

Divisible

Answer 28

Division of rights among several owners

Question 29

Physical Characteristics of Land

Answer 29

Permanence - permanent Immobility-geographic location is fixed Non-homogeneous-unique

Question 30

Economic Characteristics of Land

Answer 30

Scarcity-supply will not increase Modification-airport builing effect Fixity of Location-fixed investment Situs-area preference

Question 31

Personal Property

Answer 31

movable | everything not real property

Question 32

Choses in Action

Answer 32

intangible personal property | Ex: stock certificate

Question 33

Choses in Possession

Answer 33

furniture cars

Question 34

Business Entity

Answer 34

``` Sole proprietorship general partnership limited partnership joint venture Corporations Trust Real Estate Investment Trusts (REITS) ```

Question 35

Sole Prorietorship

Answer 35

1 owner liable for dept most common

Question 36

General Partnership

Answer 36

2 or more for profit partners have unlimited liability for debt tax paid by individual partners on income from partnership

Question 37

Limited Partnerships

Answer 37

One owner runs busines and is liable for debt | Other partners liable for only amount invested

Question 38

Joint Ventures

Answer 38

business for single project | all liable for debts

Question 39

Corporations

Answer 39

corporation liable for debt | shareholders taxed on dividends/distributions

Question 40

Trusts

Answer 40

3 parties: trustor, trustee and beneficiary | property held by one party for benefit to another

Question 41

Trustor

Answer 41

Gives or conveys

Question 42

Trustee

Answer 42

holds for beneficiary (may be an individual, institution or corp)

Question 43

Beneficiary

Answer 43

Receives. May be individual, institution or corporation

Question 44

REITS (Real Estate Investment Trusts)

Answer 44

``` specific trust for real estate Investors buys shares and trustee invests money in real estate or mortgages Equity trust invest in real estate Mortgage trust invest in mortgages must disperse 95% ordinary income ```