RP UNIT 2 Flashcards
What is land defined as?
The earth’s surface extending downward to the center of the earth and upward to infinity, including things permanently attached by nature, such as trees and water.
What are the three physical characteristics of land?
- Immobility
- Indestructibility
- Uniqueness
What does real estate consist of?
Land and all things permanently attached to it by either nature or people (improvements).
What is real property?
Real estate plus the interests, benefits, and rights inherent in the ownership of real estate.
What does the bundle of legal rights in real property ownership include?
- Possession
- Control
- Enjoyment
- Exclusion
- Disposition
What does title to real property represent?
(1) Right to property, and (2) evidence of ownership by deed.
What is an appurtenance?
A right or privilege associated with the property, although not necessarily a part of it.
How is personal property defined in relation to real property?
All property that does not fit the definition of real property.
What is the primary characteristic of personal property?
It is movable; also referred to as chattels.
What are the two categories of plants in relation to real and personal property?
- Fructus naturales (real property)
- Fructus industriales (personal property)
What is severance in relation to real property?
An item of real property may be changed to personal property through severance.
What is annexation in relation to personal property?
An item of personal property may become real estate by annexation.
What is a fixture?
An article that was once personal property but has been so affixed to land or a building that the law now recognizes it as part of the real property.
What does the acronym MARIA stand for in the context of fixtures?
- Method of attachment
- Adaptation of the item to the land’s ordinary use
- Relationship of the parties
- Intention of the person in placing the item on the land
- Agreement between the parties
What is a trade fixture?
An article owned by a tenant and attached to rented space or a building for use in operating a business.
What must a tenant do with trade fixtures upon lease termination?
Must remove on or before last day of lease.
What happens to trade fixtures if not removed by the tenant?
They become the landlord’s property.
Why is it important to clarify included items in a real estate transaction?
To avoid confusion about which items are intended to be included in the sale.
What are surface rights?
Rights that may be sold or leased to others.
What are subsurface rights?
Rights to minerals and other substances under the earth’s surface, which may be sold or leased independently of surface ownership.
What are air rights?
Rights that may be sold or leased independent of surface ownership.
What are riparian rights?
Rights granted to owners of land along a river, stream, or similar body of water.
What are littoral rights?
Rights of owners whose land borders commercially navigable lakes, seas, and oceans.
What is accretion?
Increases in land resulting from deposit of soil by water’s action.
What is the doctrine of prior appropriation?
The right to use any water, except for limited domestic use, is controlled by the state rather than the adjacent landowner.
What is the importance of scarcity in real property?
Although the total supply of land is not in short supply, land of a particular quality or location may be limited.
What is the permanence of investment in real property?
Improvements are considered to create fixed investments.
What is area preference or situs?
Choice of one area or site over another is the most important economic characteristic.
What are the specific areas of law important to real estate practitioners?
- Contract law
- General property law
- Agency law
- Real estate license law
- Federal regulations
- Federal, state, and local laws and regulations
Can real estate practitioners act as attorneys?
No, real estate practitioners may not act as attorneys.
What is the purpose of real estate license laws?
To protect the public from fraud, dishonesty, and incompetence in real estate transactions.
Is licensing required for real estate practitioners?
Yes, licensing is required by all 50 states, District of Columbia, and Canadian provinces.
Do state laws for real estate licensing differ?
Yes, state laws are similar but differ in detail.
What are the specific education requirements for real estate licensing?
Varies by state.
