Unit 1: Distinguishing Between Land, Real Estate & Real Property

Question 1

Land

Answer 1

The earth’s surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.

Question 2

Real Estate

Answer 2

Includes everything in the definition of land, plus all things permanently attached to it naturally or artificially.

Artifical attachments are called improvements and include things

Question 3

Improvements

Answer 3

Artifical attachments that are part of the Real Estate. Includes fencing, buildings and walkways.

Question 4

Real Property

Answer 4

Includes Real Estate plus the interests, benefits, and rights automatically included with real estate ownership.

Question 5

Real Property’s Interest, Benefits & Rights

Answer 5

1. Possession: The right to occupy the property
2. Enjoyement: THe right to possess the land without harassment or interference
3. Exclusion: The right to refuse other interest in your property
4. Control: The right to determine interest in the property for others
5. Disposition: The right to determine how, when, and if the property is to be sold/transfered

Question 6

Personal Property

Answer 6

Everything that is not real property. Items that are not affixed to the property.

Property that belongs to the seller and can be removed.

Question 7

Possession

Answer 7

The right to occupy the property.

Question 8

Enjoyment

Answer 8

THe right to possess the land without harassment or interference.

Question 9

Exclusion

Answer 9

The right to refuse other interest in your property.

Question 10

Control

Answer 10

The right to determine interest in the property for others.

Question 11

Disposition

Answer 11

The right to determine how, when, and if the property is to be sold/transfered.

Question 12

Fixture

Answer 12

Part of the real property being conveyed in a real estate transaction and should remain.

Question 13

5 Basic Tests to determine whether an item is a fixture.

Answer 13

MARIA

1. Method of Annexation
2. Adaptability of items to land’s use
3. Relationship of the parties.
4. Intention in placing items on land.
5. Agreement of the parties.

Question 14

Annexation (AKA: Attachment)

Answer 14

Refers to whether the item is attached to the property and how permanent the attachement is.

Question 15

Adaptation

Answer 15

Is related to how the item is situated or adapted to the real property.

Question 16

Relationship

Answer 16

Refers to if there is a dispute between the person who added the item and the person who removed it.

Question 17

Trade Fixtures

Answer 17

A trade fixture is a removable personal property that a tenant attaches to leased commercial premises in order to conduct business.

Viewed differently from other types of fixtures.

Commercial tenants many remoe their trade fixtures when their lease ends and they move out. But three conditions apply.

1. Essential for the tenants business operations.
2. Detachable without damaing the property (or repairable).
3. Moved out within a certain period of time.

Question 18

Intention

Answer 18

The intention of the party who installed the item is regarded as the most important consideration in determining whether the item should stay or go.

Question 19

Agreement of the Parties

Answer 19

Agreement is the simplest and first test: If the parties have agreed that an item will stay or go, then that agreement meets the legal test. To be safe, the agreement should be in writing.

Question 20

Chattel

Answer 20

Personal Property