RE Exam

Question 1

Appurtenance

Answer 1

A right that goes along with ownership of real property; usually transferred with the property but may be sold separately.

Question 2

Bundle of Rights

Answer 2

All real property rights that are conferred with ownership, including right of possession, right of quiet enjoyment, right of disposition, right of exclusion, and right of control.

Question 3

Heterogeneity

Answer 3

A characteristic of real property indicating its diversity or uniqueness.

Question 4

Highest and Best Use

Answer 4

The most profitable, legally permitted, financially feasible, and physically possible use of a piece of property.

Question 5

Immobility

Answer 5

A physical characteristic of real estate referring to the fact that the real estate itself cannot move from one place to another.

Question 6

Improvements

Answer 6

Additions to real property that are man-made, substantial fixtures, such as buildings.

Question 7

Independent Contractor

Answer 7

Under common law, a person who contracts to do a job for another but maintains control over how the task will be carried out, rather than following detailed instructions.

Question 8

Indestructibility

Answer 8

Refers to the fact that real estate cannot be destroyed.

Question 9

Land

Answer 9

The surface of the earth, and everything under the ground to the center of the earth, and the airspace above as far as can reasonably be used.

Question 10

Land Use Controls

Answer 10

Public or private restrictions on how land may be used (e.g., zoning).

Question 11

Personal Property

Answer 11

Any property that is not real property. It is moveable, thus not fixed to the land. Includes tangible items that are not permanently attached to or part of real estate and any property that is not real property. Also called Chattel or Personalty.

Question 12

Public Restriction

Answer 12

A law or regulation limiting or regulating the use of real property.

Question 13

Real Estate

Answer 13

The actual physical land and everything, both natural and man-made, which is attached (or appurtenant) to it.

Question 14

Real Property

Answer 14

Land, its attachments, and the rights associated with the property. Real property includes real estate plus interests, rights, and benefits of ownership. It may be legally referenced as land, tenements, and hereditaments. Also called Realty.

Question 15

Scarcity

Answer 15

A physical characteristic of real property that says there is a limited supply of real estate; the perceived supply of a good or service relative to the demand for the item.

Question 16

Situs

Answer 16

A place where something exists; an area with preferred features, giving it value to the property; the exact location or position of a piece of real estate. Also called Location or Area Preference.

Question 17

Supply and Demand

Answer 17

An economic principle that says that for all products, goods, and services when supply exceeds demand, prices will fall and when demand exceeds supply, prices will rise.

Question 18

Tax Shelter

Answer 18

1. Any method used to reduce taxable income, thereby reducing the amount of tax paid to a government. 2. Property or other investments that give owners certain income tax advantages, such as deductions for property taxes, mortgage interest, and depreciation.

Question 19

Tenements

Answer 19

Everything of a permanent nature associated with land and ordinarily transferred with the land. Tenements are both tangible (e.g., buildings) and intangible (e.g., air rights).

Question 20

Uniqueness

Answer 20

A characteristic of real property: each piece of land, each building, and each house is a different piece of real estate. Also called Non-Homogeneity or Heterogeneity.