real estate vocab unit 2

Question 1

Land

Answer 1

• Defined as the Earth’s surface extending downward to the center of the Earth and upward to infinity
• Land includes naturally attached objects, such as trees, as well as bodies of water found on or under it

Question 2

Subsurface

Answer 2

minerals and substances that life far below the Earth’s surface

Question 3

Airspace

Answer 3

the air above the Earth all the way into space

Question 4

Real Estate

Answer 4

• Defined as land plus all human made improvements to the land that are permanently attached
• An improvement to land can be any artificial thing attached on or below ground, such as a building, fence, water line or sewer pipe, as well as growing things that are made part of the landscaping, ie. trees

Question 5

Real Property

Answer 5

Defined as the interests, benefits, and rights that are automatically included in the ownership of real estate.

Question 6

Bundle of legal rights

Answer 6

• Right of possession
• Right to control the property within the framework of law
• Right of enjoyment (to use the property in any legal manner)
• Right of exclusion (to keep others from entering or using the property)
• Right of disposition (to sell, will, transfer, or otherwise dispose of or encumber the property)

Question 7

Title

Answer 7

• Refers to ownership of the property, NOT to the printed document
• The document by which the owner transfers title to the property is the deed.

Question 8

Appurtenance

Answer 8

• (Something that is transferred with or “runs with” the land)
• Is a right or privilege associated with the property although not necessarily a physical part of it.
• This includes: parking spaces in multi-unit buildings, easement, water rights and other improvements
• It is connected to the property and ownership of the appurtenance normally transfers to the new owner when the property is sold.

Question 9

Surface Rights

Answer 9

Ownership rights in a parcel of real estate are limited to the surface of the Earth

Question 10

Subsurface Rights

Answer 10

The rights to the natural resources below the Earth’s surface

Question 11

Air Rights

Answer 11

The rights to use the space above the Earth may be sold or leased independently, provided the rights have not been limited by law.

Question 12

Water Rights

Answer 12

They are common-law (historical) or statutory rights held by owners of land adjacent to rivers, lakes, or oceans and are restricting on the rights of land ownership.

Question 13

Riparian Rights

Answer 13

They are common law rights granted to owners of land along the course of the river, stream, or similar flowing body of water

Question 14

Littoral Rights

Answer 14

Closely related to riparian rights are the littoral rights of owners whose land borders commercially navigable lakes, seas and oceans
- Owners with littoral rights enjoy unrestricted use of available waters but own the land adjacent tot he water only up to the average high water mark

Question 15

Accretion

Answer 15

Increased in the land resulting from the deposit of soil by the water’s actions

Question 16

Erosion

Answer 16

The gradual and sometimes imperceptible wearing away of the land by natural forces such as wind, rain and flowing water

Question 17

Avulsion

Answer 17

• The sudden removal of soil by and act of nature
• Opposite of erosion
• It is an event that cause the loss of land in a much less subtle manner than erosion

Question 18

Prior appropriation

Answer 18

The right to use any water with the exception limited domestic use, is controlled by the state than by the land owner, adjacent to the water

Question 19

Personal property (sometimes called personalty)

Answer 19

• Is all the property that can be owned and not fit the definition of real property
• Personal property is moveable

Question 20

Chattels

Answer 20

Items of personal property

- Include such tangibles as chairs, tables, clothing, money, bounds, and bank accounts

Question 21

Factory built housing

Answer 21

Dwellings that are constructed at the site but are built off site and trucked to a building lot where they are installed or assembled

Question 22

Manufactured housing

Answer 22

Is that which is build specifically to the standards of the Department of Housing and Urban Development

Question 23

Fructus naturales

Answer 23

• Trees, perennial shrubbery and grasses that do not require annual cultivation (these items are considered real estate)
• Emblements or Fructus industriales
• Annually cultivated crops such as fruit, vegetables, and grain are generally considered personal property

Question 24

Severance

Answer 24

An item of real property can become personal property by separating it from the land

Question 25

Annexation

Answer 25

Change personal property into real property

*real property is conveyed by deed, while personal property is conveyed by a bill of sale or receipt

Question 26

Fixture

Answer 26

A personal property that has been so attached to land or a building that by law it becomes part of the real property.
- Ex. heating system, elevator equipment, radiator, kitchen cabinets light fixtures, and plumbing.

Question 27

Legal test of a fixture (MARIA)

Answer 27

• Method of annexation
• Adaptability of the item for the lands ordinary use
• Relationship of the parties
• Intention of the person in placing the item on the land
• Agreement of the parties

Question 28

Trade fixture

Answer 28

An article owned by a tenant, attached to a rented space or building and is used in conducting a business

Question 29

Accession

Answer 29

Trade fixtures that are not removed become the real property of the landlord

Question 30

Four Economic characteristics of Real Estate

Answer 30

1. Scarcity
2. Improvements
3. Permanence of investment
4. Area preference or situs

Question 31

Three Physical characteristics of land

Answer 31

1. Immobility
2. Indestructibility
3. Uniqueness

Question 32

Laws affecting real estate

Answer 32

• Contract law
• General property law
• Agency law
• Real estate license law
• Federal, state, and local laws and regulations
  
  • E.g, consumer protection, environmental tax, land use, and zoning