Real Estate Characteristics and Rights

Question 1

This common term is used to explain the complexities of property ownership rights

Answer 1

Bundle of Rights

Question 2

What are land’s physical components.

Answer 2

Surface, subsurface, and air rights

Question 3

Both land and water rights

Answer 3

Surface Rights

Question 4

The right to use underground resources such as natural gas and minerals.

Answer 4

Subsurface Rights

Question 5

Subsurface rights are also known as

Answer 5

Mineral Rights

Question 6

The right to use the open space above buildings up to a height established by law.

Answer 6

Air Rights

Question 7

The right to profit from the land.

Answer 7

Right to Profit

Question 8

An owner can mortgage the property, thereby transferring an interest to a mortgagee for the term of the loan

Answer 8

Mortgage Rights

Question 9

The right to draw water from underground resources (such as wells) for the landowner’s use.

Answer 9

Percolating

Question 10

What are the three water rights

Answer 10

Percolating, Riparian and Littoral

Question 11

The right to access and use rivers, streams, and other flowing bodies of water adjacent to the property.

Answer 11

Riparian

Question 12

The right to access and use ponds, lakes, oceans, and other stationary bodies of water bordering the property

Answer 12

Littoral

Question 13

A legal doctrine that grants water rights to the first individual or entity to take water from a source for beneficial use.

Answer 13

Prior Appropriation

Question 14

What are the economic characteristics of real property

Answer 14

Scarcity, Improvements, Permanence of Investment, Location or Area preference

Question 15

What are the physical characteristics of real property

Answer 15

Immobility, Indestructibility, Uniqueness

Question 16

A limited supply of real estate

Answer 16

Scarcity

Question 17

Adding a pool and landscaping to a home will increase its value or if a nuclear power plant is built, the surrounding land values will decline, are examples of

Answer 17

Improvement

Question 18

Improvements, such as sewer, roads, and utilities, are long-term, stable investments with relatively stable returns over time.

Answer 18

Permanence of investment

Question 19

A property’s value is in large part dependent on its situs (area where it is located and market desirability for the area).

Answer 19

Location or area preference

Question 20

The geographic location of a piece of land is fixed; it can never be changed.

Answer 20

Immobility

Question 21

While improvements may deteriorate over time, the land itself cannot be destroyed.

Answer 21

Indestructibility

Question 22

One parcel (piece of land) will not be exactly like another. This is the concept of nonhomogeneity.

Answer 22

Uniqueness