Unit 1

Question 1

What five economic characteristics affect the value of land in the marketplace?

Answer 1

Demand
Utility
Scarcity
Transferability
Situs

Question 2

What are the three physical characteristics of land?

Answer 2

Immobile or permanent
Indestructible
Non-homogeneous or unique

Question 3

Explain the differences between the legal concepts of land and real estate.

Answer 3

Land encompasses the surface of the earth, whatever is below the surface, whatever is above extending into space, and every natural thing that is permanently attached to the earth. Real estate includes all this plus all human-made things permanently attached to the earth.

Question 4

Define special purpose real estate and give an example.

Answer 4

Property that has a unique use to the persons who own and use it, such as churches, hospitals, schools, and government buildings.

Question 5

Name the five major rights included in the bundle of rights to real estate.

Answer 5

possess
use
transfer
encumber
exclude

Question 6

Define the “right to use” and describe its limitations.

Answer 6

The right to use a property refers to the right to use it in certain ways, such as mining, cultivating, landscaping and building on the property. The right is subject to the limitations of local zoning and the legality of the use. One’s right to use may not infringe on the rights of others to use and enjoy their property.

Question 7

What is the difference between littoral rights and riparian rights?

Answer 7

Littoral rights concern properties that border bodies of water that are not moving.
Riparian rights concern properties that border moving water such as streams and rivers.

Question 8

What are the legal tests that determine if an item is a fixture?

Answer 8

Method of annexation (attachment)
Adaptability
Intention
Existence of an agreement

Question 9

Name the aspects of real property interests that are regulated by government.

Answer 9

the bundle of rights
legal descriptions
financing
insurance
inheritance
taxation

Question 10

Describe the kinds of interests regulated at each level of government.

Answer 10

Federal: broad standards of usage, natural disaster, environment, discrimination, land description, lending
State: licensing, regional usage, ownership and inheritance
Local: specific land use control, taxation
Judicial: case law and common law applications to ownership and use