Real Property & The Law

Question 0

Real Estate

Answer 0

Land at, above and below the earth’s surface, and all things permanently attached to it, whether natural or artificial.

Question 1

Land

Answer 1

The earth’s surface extending downward to the center of the earth and upward into space, including permanent natural objects (I.e. Trees and water)

Question 2

Real Property

Answer 2

Includes LAND and REAL ESTATE, plus the BUNDLE OF LEGAL RIGHTS included in their ownership.

Question 3

Bundle of Rights

Answer 3

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

Question 4

Appurtenance

Answer 4

A right or privilege associated with a property.

Question 5

**Personality (Personal Property)

Answer 5

All movable property that can be owned and does not fit the definition of REAL PROPERTY. It is also referred to as CHATTLE.

Question 6

**Severance

Answer 6

Making an item of REAL PROPERTY into personal property by severing it from the REAL ESTATE. Common examples are cutting down a tree or harvesting fruit or vegetables.

Question 7

Fixture

Answer 7

The conversion of PERSONALTY (CHATTEL) to REAL ESTATE through attachment thereof with the intention that it become a permanent part of the REAL ESTATE. A FIXTURE may not be removed by the tenant.

Question 8

**Legal Tests of a Fixture

Answer 8

The methodology courts use to determine the intent of the person who installed a FIXTURE:

1) METHOD OF ANNEXATION
How permanent is the attachment method?
2) ADAPTATION TO REAL ESTATE
Is the item being used as real or personal property (I.e.- build in refrigerator with doors matching cabinets is a fixture)
3) AGREEMENT
Have the parties agreed to treat an item as though it is real or personal property?

Question 9

**Trade Fixture (Chattel Fixture)

Answer 9

PERSONALTY property used in the course of business attached to a rented space. During the life of the lease, it remains personal property and may be removed by the tenant. TRADE FIXTURES are only included in the sale or mortgage of REAL ESTATE by special agreement.

Question 10

**Four Economic Characteristics of Real Estate

Answer 10

1) SCARCITY
2) IMPROVEMENTS
3) PERMANENCE OF INVESTMENT
4) LOCATION OR AREA OF PREFERENCE

Question 11

Three Physical Characteristics of Real Estate

Answer 11

1) IMMOBILITY
2) INDESTRUCTABILITY
3) UNIQUENESS