Section 1 - Chapter 2

Question 1

land:

Answer 1

the earth’s surface extending downward to the center of earth and upward to infinity; includes permanent natural objects; includes subsurface and airspace

Question 2

real estate:

Answer 2

land plus human-made additions

Question 3

improvement:

Answer 3

any artificial addition to land, such as a building or fence (could be a positive or negative attribute affecting value)

Question 4

real property:

Answer 4

real estate plus bundle of rights; interests, benefits, and rights that are automatically included in the ownership of land and real estate

Question 5

appurtenance

Answer 5

anything associated with a property although not necessarily a direct part of it; parking spaces, easements, water rights, etc

Question 6

subsurface rights

Answer 6

rights to the natural resources lying below the earth’s surface; separable from surface rights

Question 7

bundle of legal rights:

Answer 7

rights of possession, control the property, enjoyment (to use in any legal manner), exclusion (keep others from entering or using), disposition (sell, transfer, will, etc)

Question 8

personal property or personalty

Answer 8

all property that can be owned that doesn’t fit the definition of real property

Question 9

trees w/o annual cultivation;

Answer 9

considered real estate

Question 10

annually cultivated crops:

Answer 10

considered personal property; called emblements

Question 11

real property can become personal property by

Answer 11

severance

Question 12

personal property converted to real property by

Answer 12

annexation

Question 13

real property conveyed by:

Answer 13

deed

Question 14

fixture

Answer 14

personal property that has been so affixed to land or building that becomes part of the real property

Question 15

tests of being a fixture

Answer 15

method of attachment, adapation to real estate, agreement

Question 16

trade/chattel fixtures

Answer 16

fixtures included in use of business and must be removed when leaving the property

Question 17

attachment is:

Answer 17

personal property that turns into real property

Question 18

accession is:

Answer 18

trade fixtures (personal property) becoming owned by landlord

Question 19

4 characteristics of real estate

Answer 19

scarcity, improvements, permanence of investment, location

Question 20

most important economic characteristic of land:

Answer 20

location

Question 21

land’s 3 physical characteristics

Answer 21

immobility, indestructibility, uniqueness

Question 22

seven sources of law

Answer 22

US constitution, laws passed by congress, rules of regulatory agencies, state constitutions, state statues, local ordinances, common law

Question 23

purpose of real estate law

Answer 23

protect public from fraud, dishonesty, and incompetence in real estate transactions