Uniit 2 Review Questions Flashcards
A new owner received the right to use a parking space in the multi-unit building where she purchased a condominium. This right is an example of
an appurtenance
An important characteristic of personal property is that it is
movable
A farmer has posted a number of “No Trespassing” and “No Hunting” signs on his property. Which “stick” in the bundle of rights gives the farmer this authority?
Exclusion
Land, mineral, and air rights in the land are included in the definition of
real property.
A man particularly liked the ornate brass lighting fixtures in a woman’s house and immediately made an offer, which the woman accepted. On moving day, the man discovered that the woman had replaced all the ornate brass lighting fixtures with plain steel ones. Which of these is MOST likely a correct assumption?
Man: “Lighting fixtures are normally considered to be real property.
The transfer of the right to use the surface of the earth always includes the right to the natural resources that lie beneath the surface of the earth.
False. The transfer of the surface does not necessarily include the rights to the subsurface rights, which are the natural resources that lie beneath the surface. An owner may transfer surface rights without transferring subsurface rights.
Methods of annexation, adaptation, and agreement are the legal tests for determining whether an item is
real property or personal property.
To determine whether an item is a fixture, the MOST important test is whether the
person who installed it intended for it to be permanent.
A trade fixture is an article owned by a tenant and attached to a rented space or building used in conducting a business.
True. An article owned by a tenant and attached to a rented space and used in conducting a business is a trade fixture; it may be removed prior to the termination of the lease.
Trade fixtures are typically excluded from a mortgage.
True. Because trade fixtures are considered personal property, they are not included in the sale, mortgage, or real estate, except by special agreement.
The most important economic characteristic of land is
Location
The economic characteristic of permanence of investment refers to the concept that the total supply of land is limited.
False. Permanence of investment refers to the concept that the return on investment in real estate tends to be long-term and relatively stable. Scarcity refers to the concept that the total supply of land is limited.
The developer added sewer lines and utilities and built two streets. What are these items called?
Improvements
Real property is defined as the earth’s surface extending downward to the center of the earth and upward to infinity, including permanent natural objects, such as trees and water.
False
After suffering through a tornado and then flooding from the river, the buildings were gone. The land was still there. This is an example of
indestructibility
The economic characteristics of real estate are scarcity, improvements, permanence of investment, and uniqueness.
False. Economic characteristics of land include scarcity, improvements, permanence of investment, and area preference.
A seller asked a real estate professional to draw up several documents relating to seller financing. Under these circumstances, the real estate professional should
refer the seller to an attorney.
All of these are included in the bundle of rights EXCEPT
expansion
A right or privilege tied to real property, although not necessarily part of the property, is called a(n)
an appurtenance.
Owners with littoral rights enjoy
unrestricted use of available waters, but they own the land adjacent to the water only up to the average high-water mark.
Which of these is an example of an economic characteristic of land?
Scarcity
The process by which personal property becomes real property is called annexation.
True. It is possible to change personal property into real property through the process called annexation, such as mixing cement, stones, sand, and water (personal property).
Growing trees, fences, and buildings are all considered
real estate.
One of the rights of real property ownership is the right of enjoyment, or the right to use the property in any legal way.
True. Traditionally, ownership rights of real property include the right of possession, control, enjoyment, exclusion, and disposition.
A property’s air rights extend upward into outer space.
False. Property air rights began to be limited when air travel became common. Now, light and solar rights may limit air rights in certain areas.
A tenant farmer built a chicken coop and a tool shed. These buildings belong to the
tenant
A woman planted a rose bush on her property and plans to dig it up and take it with her when her house is sold. The sales contract explicitly excludes the rose bush from the sale. This provision is necessary because the rose bush is considered to be
real estate.
The terms land, real estate, and real property are interchangeable and refer to the same thing.
False. The terms land, real estate, and real property are not interchangeable. They refer to different aspects of ownership rights.
The term real property includes land, rights, and real estate.
True. The term real property is the broadest of all; it includes both land and real estate, as well as the interests, benefits, and rights that are automatically included in the ownership of land and real estate.
Another word for uniqueness is
nonhomogeneity
When determining if an item is a fixture, decide whether the item is actually being used as real or personal property.
True. During the course of time, the same materials may be both real and personal property, depending on their use and location. For example, a refrigerator is usually considered personal property but becomes real property when installed so as to become part of the kitchen cabinetry.
Mobile home, rather than manufactured housing, is the term used for a factory-built home that was built before
1976
Immobility, indestructibility, and scarcity are physical characteristics of real property.
False. Physical characteristics of land include immobility, indestructibility, and uniqueness.
Trees, perennial shrubbery, and grasses that do not require annual cultivation are considered personal property.
False. Trees, perennial shrubbery, and grasses that do not require annual cultivation are considered real estate.
