The Nature, Description, And Use of Real Estate

Question 1

Legal bundle of rights

Answer 1

1. Possession
2. Control
3. Enjoyment
4. Excitement
5. Disposition

This came from old England-gave bundle of sticks and earth to show ownership of land

Question 2

Water rights* (three different kinds)

Answer 2

1. Riparian rights: right to use of water adjacent to land as in Rivers - flowing 2. Littoral rights: right to use of water adjacent to land as in lakes - standing 3. Doctrine of prior appropriation: government controls rights and grants permits for beneficial use of water (irrigation) under this * does not include right of access-need an easement for right of use

Question 3

Air rights

Answer 3

As high as can be reasonably used Government controls airspace: owners may not interfere

Question 4

Mineral rights

Answer 4

A.k.a. subsurface rights Transferable with sale of property Often held by third-party

Question 5

Accretion

Answer 5

Addition to land through natural causes

Question 6

Personal property

Answer 6

A.k.a. chattels Movable, not permanently attached to land, does not transfer with real estate Must be included in the purchase agreement to convey with the property Transferred by bill of sale

Question 7

Fixture

Answer 7

Personal property attached to real property Land is never a fixture Transfers in deed Once attached it becomes and a pertinence automatically transferring in the deed

Question 8

Legal tests of a fixture (M. A. R. I. A.)

Answer 8

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

Question 9

Fixture exceptions

Answer 9

Trade fixtures Emblements If either are transferred they will be by a bill of sale

Question 10

Personal property must be… And fixtures must be…

Answer 10

… Included in writing. … Excluded in writing.

Question 11

Physical & Economic Characteristics of Land

Answer 11

Immobile, indestructible, unique *Scarcity, improvements, permanence of investment, area preference * land is not a liquid asset

Question 12

Three most common methods of *land description

Answer 12

Generally rural: meets and bounds, rectangular (government) survey Generally urban: recorded plat *Does not describe improvements, only the land

Question 13

What is a survey and what does it do

Answer 13

Used to create or confirm legal description

Uses visible monuments that establish property boundaries

Survey and Mortgage survey will reveal encroachments

Question 14

Describe Mete and Bounds

Answer 14

Metes: measured in feet, compass, or degrees Bounds: shape or boundary line Monuments: fixed objects serving as a reference point for survey or when setting boundaries POB: point of beginning (also end) Measured in clockwise direction

Question 15

Rectangular (government) survey

Answer 15

Grid system developed by US government that locates a parcel of land

Uses Meridian and bass lines (large imaginary reference lines) - 6 miles apart

Question 16

Describe a Township

Answer 16

Township is a square formed by meeting of ranges and tiers (6 miles x 6 miles)

Range: vertical row of townships (North-South)

Tier: horizontal row of townships (East-West) a.k.a. township lines

Township = 36 sections Section; 1 mile x 1 mile Square; 640 acres

Acre: 43,560 ft.²

Question 17

Rights (3 different kinds)

Answer 17

1. Rights in land: air, water, mineral 2. Rights of ownership: right to possess, transfer, and control 3. Governmental rights: government right to determine land use, sect taxes, and eminent domain

Question 18

Describe a recorded map “Plat”

Answer 18

A.k.a. lot and block system Shows location and boundaries of individual lots in subdivision Recorded in county recorders office where property is located Most common in urban residential areas Recording subdivision plat most common way to become dedicated for public use

Question 19

Master Development Plan Land Use Classifications

Answer 19

used for long term growth and control of growth in town/city Land Use Classifications - res, comm, indust., ag, mixed use (retail below/residential above) - Euclidean Zoning *NOTE: buffer zones (parks and open spaces) often used to separate different land use zones.

Question 20

Land Use Restrictions Tied to Police Power

Answer 20

Gov’t regulations on how to use property 1. Purpose - Control Growth 2. Building Permits (new construct & renno) 3. Building Codes enforced (for safety) 4. Certificate of Occupancy - obtained after meeting all reqs. 5. Setback Restrictions 6. Minimum Frontage Requirements a.k.a. linear distance from face to street 7. Flood Insurance - separate from homeowner’s policy

Question 21

Zoning Changes/Deviations (How Land is Used)

Answer 21

1. Laws set locally a. what construct. is allowed b. identifies setbacks c. nothing grandfathered in d. buyers verify zoning will meet needs 2. Amendments change entire area 3. Nonconforming Use (Grandfathered In) 4.Variance (individual deviation from zoning law) 5. Conditional Use/Special Permits (church/daycare) 6. Overlaying Zoning additional to Basic Zoning

Question 22

Overlaying Zoning

Answer 22

School, Tax, or Utility District - all property owners within boundaries are taxed. Airport/Flight Paths

Question 23

Disclosures

Answer 23

Buyer’s Responsibility to Verify: -Current Zoning & Use Meets Needs -Not in Floodplain -Permits Pulled and Completed - getting records from the city

Question 24

Area (Square Footage) & Frontage (Street Front)

Answer 24

Area = Width x Length & Width = Frontage