Unit 1

Question 1

Land

Answer 1

Subsurface, surface, and airspace

Question 2

Real Estate

Answer 2

Land plus permanent human made additions. Including improvements.

Question 3

Improvements

Answer 3

Any artificial thing attached to land, such as a building fence or streets, utilities, and sewers

Question 4

Real Property

Answer 4

Real Estate plus bundle of legal rights. Conveyed by a deed.

Question 5

Bundle of Legal Rights

Answer 5

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

Question 6

Title

Answer 6

Ownership of real property

Question 7

Deed

Answer 7

Printed document that is evidence of ownership. It is used to transfer title to the real property.

Question 8

Appurtenance

Answer 8

Right or privilege associated with the property. It includes parking spaces in multiunit buildings, easements, water rights, and other improvements. Normally transfers to the new owner when the property is sold.

Question 9

Personal Property/ personalty

Answer 9

Can be owned and is movable. Sometimes referred to as chattels. They include chairs, tables, clothing, money, bonds, and bank accounts. Conveyed by a bill of sale or receipt.

Question 10

Factory built homes/ manufactured home

Answer 10

Dwelling that is built offsite and trucked to a building lot where they are installed or assembled. Generally considered personal property (motor vehicle). HUD specifications- Non-removable steel chassis, 8ft wide and 40 ft long, 320 sq ft of living space, capable of being lived in with or without permanent structure, red label.

Question 11

Fructas Naturales

Answer 11

Trees, perennial bushes, orchards/ vineyards, and grasses do not require annual cultivation. Considered real estate.

Question 12

Emblements/ Frustes Industriales

Answer 12

Annual cultivated crops of fruit, vegetables, and grain. Generally considered personal property. Owner or tenant is entitled to harvest their crop.

Question 13

Severance

Answer 13

Real property can become personal property by severance. Ex) owner cuts down a growing tree

Question 14

Annexation

Answer 14

Personal property becomes real property. Ex) Materials for a sidewalk become a sidewalk

Question 15

Fixture

Answer 15

Personal property that has been affixed to the land or a building, that by law, it becomes part of the real property. Includes heating plants, elevator equipment, radiators, kitchen cabinets, light fixtures, and plumbing. Intent is what determines if it is a fixture- annexation, adaptation, and agreement.

Question 16

Trade Fixture/ Chattel Fixture

Answer 16

Personal property and are not included in the sale or mortgage of real estate except by special agreement. Used in conducting business. Ex) Bowling alley, store shelves, chicken coops, tool sheds. Must be removed on or before the last day the property is rented. Trade fixtures that are not removed become the real property of the landlord. Acquiring property in this way is called accession

Question 17

Four Economic Characteristics of Real Estate

Answer 17

1. Scarcity
2. Improvements
3. Permanence of investment
4. Location or preference (situs) **

Question 18

Physical Characteristics of Real Estate

Answer 18

Immobility- fixed
Indestructibility
Uniqueness/ non- homogeneity- no two properties are exactly the same or in the same location

Question 19

Mine Subsidence

Answer 19

prices of downward land shifts due to the collapse of underground mine shafts and groundwater flows, usually resulting in sinkholes and troughs. Sellers in PA must provide a coal mining notice to purchasers indicating that a structure on the land may not be protected against damage caused by subsidence due to coal mining. Special insurance to cover these damages.