Real Property Vs. Personal Property Flashcards
Real estate, plus the interest, benefits, and rights included with ownership
Is this real property or personal property?
Real property
Example real property can be segmented into a bundle of rights, with each right, sold separately, to different owners.
Property that is movable, may be owned by a person, and is not real property. Is this personal property or real property?
Personal property
Example me, it was surprised to learn that the sellers took the freestanding fountain with them. She hadn’t realized that it was personal property.
What is another word for personal property as opposed to real property?
Chattel
Example you might confuse your buyers if you ask them, “was there any chattel of the sellers you wanted to write into the sales contract? “. It’s better to use the term “ personal property”.
A piece of equipment or other item that is on or attached to the real estate and is used in a trade or business.
Trade fixture
Example when she moved her business location, Candy took the neon business sign, flashing candies chocolates. Even though it was permanently attached to the building, it was a personal item as a trade fixture I could be removed legally.
Growing crops, such as decorative trees, or corn, which are produced annually, usually not considered fixtures, but our the personal property of the person who planted them
Emblements
Example the Swanson’s grew wine, grapes on their property, and when it was time to sell their vineyard, their latest plantings were considered emblems and were not part of the property price, these were sold separately to the buyer
What are two common exceptions with real property versus personal property?
Trade fixtures and emblements
Altering the characteristic of an item from real property to personal property by removing it from the land
Severance
Example on this Goldman, dock of her rosebushes, this was an act of severance. They were no longer part of the land and we’re now personal property.
An attachment of personal property to the real property, thereby making it a fixture also known as an attachment
Annexation
Example when Miss Coleman planted the rose bushes in her yard, the resultant annexation meant that the rosebushes are now made part of the property.
Cultivated crops, a.k.a. Emblements , are considered personal opportunity, even though they are part of the soil.
True or false
True
Severance occurs when an item that was real property becomes personal property by attaching it, severing it from the land.
True or false
True
If a plant or shrub his under certain size, it is acceptable for the seller to remove it from the property without the buyers agreement
True or false
False
Occurs when personal property is attached to real property, which makes it a fixture
Emblements
Severance
Annexation
Annexation is when it personal property is attached to real property, which makes it a fixture
Anna’s going to sell her house, but first, she takes up several of her irises and flowers to take when she moves
Severance
Annexation
Severance
Jack decides to cut down a few trees on his property and use them as firewood.
Severance
Annexation
Severance
Tim is thinking about selling his house, so he cuts down a dime pine tree in the backyard.
Severance
Annexation
Severance
Jessica and her elderly sister plan a not too small, flowering shrubs in the backyard.
Severance
Annexation
Annexation
Sam wants a walkway from the house to the detached garage, so he constructs a path for the loose stones on his
Severance
Annexation
Annexation
What are the two classes of plants?
Emblements and severance
The opposite of severance is annexation
What is the opposite of severance?
Annexation
What is the opposite of annexation?
Severance, removing a plant that is permanent, such as a rose, bush, or tree.
If an item is permanently attached to a property, a court would most likely consider it a fixture if it passes which of the following tests?
Adaptability of the item to the land use
Agreement of the parties
Method of annexation
Relationship of the parties
Method of annexation
What is the best way for a seller and buyer to demonstrate their agreement that the homes existing refrigerator and a dishwasher are included in the property?
My shaking hands on it on the day of the sale
My verbal agreement after the sale
My verbal agreement before
By including a bill of sale or agreement in the purchase contract
By including a bill of sale or agreement in the purchase contract
Which of the following is NOT one of the five basic tests that Kohrdt used to determine whether an item is a fixture or personal property?
Agreement of parties
Legally permissible use
Method of annexation
Relationship of the parties
Legally permissible use
Of the following, which is most likely to be considered a fixture
A fence around the field
Pasture
Stream
Tractor
A fence around a field
What is UCC?
Uniform commercial code created in the 1950s that regulates financial contracts dealing with personal property not real estate itself. Used as collateral to be documented through a security agreement signed by borrower. This describes personal property used as collateral pledged as collateral includes any removable fixtures allows the lender to confiscate the personal property pledged in the event of borrower default.
What are five test to determine property type?
Method of annexation
Adaptability of item to land-use
Relationship of the parties
Intention and placing item on land
Agreement of the parties
Severance
Altering the characteristic of an item from real property to personal property by removing it from land
Example when Miss Goldman dug up her rosebushes, this was an active severance. They were no longer part of the land and we’re now personal property.
Fixture
An item that is permanently attached to real property
Example, the bookshelf in the dining room was a built-in. They were a fixture and could not be removed by the seller.
Method of annexation
Known as attachment, refers to whether the item is attached on the property, and how permanent the attachment is.
Adaptation
Related to have the item is situated or adapted to the real property
Relationship of the parties
Weather in item is real or personal property
Trade fixtures
A removable personal property that a tenant attaches to lease commercial premises in order to conduct business
Intention
A persons, original intentions may change over time about an item that was intended to be temporary may end up physically attached to the property which can change the item from temporary to permanent
Agreement of the parties
Simplest and first test disagreement should be in writing called a “ bill of sale”
Emblements
Growing crops, such as decorative trees are corn, which are produced annually, usually not considered fixtures, but our personal property of the person who planted them
Example the Swanson group wine, grapes on their property, and when it is time to sell their Vineyard, their latest plantings were considered emblements and we’re not part of the property price. These were sold separately to the buyer.
Annexation
An attachment, a personal property to real property, thereby making at a fixture also known as an attachment.
When Mr. Goldman planted the rose bushes in her yard, the resultant annexation meant that the rosebushes were now made part of the property.
