Unit 1: Distinguishing Between Land, Real Estate & Real Property Flashcards
Land
The earth’s surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.
Real Estate
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
Improvements
Artifical attachments that are part of the Real Estate. Includes fencing, buildings and walkways.
Real Property
Includes Real Estate plus the interests, benefits, and rights automatically included with real estate ownership.
Real Property’s Interest, Benefits & Rights
- Possession: The right to occupy the property
- Enjoyement: THe right to possess the land without harassment or interference
- Exclusion: The right to refuse other interest in your property
- Control: The right to determine interest in the property for others
- Disposition: The right to determine how, when, and if the property is to be sold/transfered
Personal Property
Everything that is not real property. Items that are not affixed to the property.
Property that belongs to the seller and can be removed.
Possession
The right to occupy the property.
Enjoyment
THe right to possess the land without harassment or interference.
Exclusion
The right to refuse other interest in your property.
Control
The right to determine interest in the property for others.
Disposition
The right to determine how, when, and if the property is to be sold/transfered.
Fixture
Part of the real property being conveyed in a real estate transaction and should remain.
5 Basic Tests to determine whether an item is a fixture.
MARIA
- Method of Annexation
- Adaptability of items to land’s use
- Relationship of the parties.
- Intention in placing items on land.
- Agreement of the parties.
Annexation (AKA: Attachment)
Refers to whether the item is attached to the property and how permanent the attachement is.
Adaptation
Is related to how the item is situated or adapted to the real property.
Relationship
Refers to if there is a dispute between the person who added the item and the person who removed it.
Trade Fixtures
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.
- Essential for the tenants business operations.
- Detachable without damaing the property (or repairable).
- Moved out within a certain period of time.
Intention
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.
Agreement of the Parties
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.
Chattel
Personal Property
