real estate 1

Question 1

Bundle of Rights

Answer 1

Legal rights of the real estate title holder. Includes the right of possession, the right of control, the right of exclusion, the right of enjoyment and the right of disposition.

Question 2

Real Property

Answer 2

Generally immovable. Goes with the real estate.

Question 3

Personal Property

Answer 3

Generally movable. Goes with the person. Personal property can be hypothecated, alienated and become real property (a fixture).

Question 4

Chattel Real

Answer 4

Often merely refers to tangible movable personal property.

Question 5

Fixture

Answer 5

Personal property that is now real property- for example, a pool covering or a painting that has been nailed to the wall. The acronym MARIA is a test for whether or not something is a fixture (Method Adaptability Relationship Intention Agreement).

Question 6

Trade Fixture

Answer 6

Linked to a business. They are personal property- for example, a hairdresser’s chair or a dentist chair. Although the chair is attached to the ground, it is not real property- it is personal because when the hairdresser sells her property, the chair will be going with her as part of her business. The chair is personal because it belongs with the person, not the land.

Question 7

Riparian Rights

Answer 7

Water rights over a moving body of water- for example, a river or a stream.

Question 8

Littoral Rights

Answer 8

Land which abuts a body of static water- for example, a lake, sea or ocean.

Question 9

Avulsion

Answer 9

Land is washed away by water- for example, a dam breaks and the rushing water washes away a strip of land.

Question 10

Accretion

Answer 10

An increase in actual land due to natural causes- for example, from the gradual action of the ocean or river waters.

Question 11

Reliction

Answer 11

Gradual recession of water, leaving land permanently uncovered.

Question 12

Appurtenances

Answer 12

rights and restrictions remaining with a property even when the property is sold

Question 13

Freehold Estate

Answer 13

Estate where ownership is held for an undefined length of time.

Question 14

Fee Simple Estate

Answer 14

Also known as an “Estate of Inheritance” or “Fee Simple Absolute”, this is a type of freehold estate. A Fee Simple Estate can be sold or inherited, and is not free of encumbrances (taxes). Fee Simple Absolute is the most interest that one can hold in land.

Question 15

Life Estate

Answer 15

An interest in real property that lasts the length of someone’s life. It is a type of freehold estate because it is indefinite in duration. When the life tenant’s life ends, title reverts to the original owner (reversion) or a remainderman.

Question 16

Life Estate Pur Autrie Vie

Answer 16

An interest in real property that lasts the length of someone’s life (who is not the life tenant). It is a type of freehold estate because it is indefinite in duration. When the “measuring life” ends, title reverts to the original owner (reversion) or a remainderman.

Question 17

Less Than Freehold Estate

Answer 17

An estate interest held for a defined period of time.

Question 18

Estate for Years

Answer 18

Estate or tenancy lasting a fixed period of time- for example, a summer rental lasting from April 5 to September 19.

Question 19

Periodic Tenancy

Answer 19

Estate where tenancy is renewed periodically- for example, week to week, month to month or year to year.

Question 20

Estate at Will

Answer 20

Estate that can be ended at any time by the landlord or the tenant.

Question 21

Estate at Sufferance

Answer 21

Estate where a tenant continues to occupy a property after a lease or rental agreement has ended- for example, a deadbeat tenant.

Question 22

Lease

Answer 22

A contract between a lessor and a lessee which gives possession but not ownership, to the lessee. Also known as a “Leasehold Estate”. The tenant doesn’t need to sign a lease to become a lessee, acting as a lessee is enough. This is NOT real property, a lease is considered personal property. Think of them as a piece of paper- a lease is a piece of paper, and you can move a piece of paper, so leases are personal property.

Question 23

Percentage Lease

Answer 23

Lease where the amount of rent paid by the lessee is a percentage of the gross income of the lessee’s business- for example, a commercial parking lot.

Question 24

Gross Lease

Answer 24

Lease in which the tenant pays a fixed amount to the landlord- for example, a standard residential lease.

Question 25

Net Lease

Answer 25

Also known as a Triple Net Lease, this is a lease in which the tenant pays for taxes, insurance and maintenance in addition to other fees like rent and utilities.

Question 26

Easements

Answer 26

right to cross someone’s land for a purpose

Question 27

Tenancy

Answer 27

tenant having a right to temporally occupy with real estate that belongs to the landlord

Question 28

what rights does the bundle of rights include (5 rights)

Answer 28

Possession ,Control Exclusion,Enjoyment ,disposition

Question 29

Sandwich Lease

Answer 29

A lease in which an existing tenant sub-lets (or leases again) the property to a third party. The lessee becomes the lessor.

Question 30

Sale Leaseback

Answer 30

Seller leases the recently-sold building from the new owner. The Vendor becomes the Lessee. This allows the seller to deduct all future rent payments as business expenditures.

Question 31

Vendor

Answer 31

Someone or company offering something for sale

Question 32

Tenant Improvement Allowance

Answer 32

The amount a landlord is willing to spend so the tenant can retrofit (Furnish) or renovate a commercial space.

Question 33

Abandonment

Answer 33

Voluntarily giving up the rights and responsibilities of possession of a property.

Question 34

Subleases

Answer 34

When an existing tenant sub-lets (or leases again) the property to a third party. The lessee becomes the lessor.