Real Estate: Intro Review

Question 1

Define: Real Property

Answer 1

Includes surface of land, reasonable space above and below surface, and anything attached to surface (e.g. a building)

Question 2

Two types of personal property

Answer 2

1. Tangible (chattels)
2. Intangible

Question 3

Define: Tangible property (chattels)

Answer 3

• Things which are (usually) not unique and can be reproduced
• A physical thing which can be touched/moved

Question 4

Define: Intangible property

Answer 4

Includes rights a person may have, such as right to sue, right to copy (copyright), right to withdraw money from account

Question 5

Fixture vs. Chattel

Answer 5

Fixture = an object which is “fixed” to the land and cannot be removed easily. May be integral part of the building.

Chattel = an object which can be easily moved and removed from the property

Question 6

How do the courts determine if a chattel has become a fixture?

Answer 6

Courts look at:

• Degree chattel has become attached to land and how much damage would occur if removed
• Purpose for which item was placed on property, whether it was for better use of the land or better use of the chattel

Question 7

What is the “general rule” of determining if something is a chattel?

Answer 7

If it is not physically attached to the land it is a chattel
(There must be something more than gravity holding it to the land)

Question 8

What items are included and excluded in a standard Real Estate Purchase Contract?

Answer 8

All permanent fixtures are included
All chattels are excluded
(Unless specifically written otherwise in the contract)

Question 9

Term used when two or more people have an interest in land together

Answer 9

Co-ownership / Concurrent ownership

Question 10

Who owns the property and who owns the estate/interest in said property?

Answer 10

Crown owns property

Individuals own estate or interest in property
(Tenants of the Crown)

Question 11

Two forms of tenancy

Answer 11

Joint Tenancy

Tenancy in Common

Question 12

Define: Joint tenancy

Answer 12

• All people own 100% of all property together
• They do not own separate percentages
• Carries right of survivorship

Question 13

Define: Tenancy in common

Answer 13

• Each owner owns portion of the property as a percentage
• Does not pass to other owners upon death

Question 14

Do percentages of ownership interest need to be specified and/or equal for tenants in common?

Answer 14

No, they do not.

If no percentage is specified, the courts assume equal percentage among all owners

Question 15

What are the 3 parts of contract law?

Answer 15

1. Offer
2. Acceptance
3. Consideration

Question 16

Can an offer be accepted after the deadline?

Answer 16

No. After expiring, the offer cannot be accepted any longer

Question 17

What is required to make an acceptance valid

Answer 17

To be a valid acceptance, it must be accepted before the deadline expires

Question 18

What is the “consideration” of a contract?

Answer 18

What is being exchanged in the contract
(LAND exchanged for MONEY)
(Sometimes also CHATTELS)