Unit 2 Flashcards
Land
defined as the earth’s surface extending downward to the center of the earth and upward to infinity.
Real estate
defined as land plus all human-made improvements to the land that are permanently attached (annexed) to it
An improvement to land
any artificial thing attached on or below ground, such as a building, fence, water line or sewer pipe, as well as growing things that are made part of the landscaping
Real property
defined as the interests, benefits, and rights that are automati- cally included in the ownership of real estate.
Bungle of the legal rights
■ right of possession,
■ right to control the property within the framework of the law,
■ right of enjoyment (to use the property in any legal manner),
■ right of exclusion (to keep others from entering or using the property), and
■ right of disposition (to sell, will, transfer, or otherwise dispose of or encum-
ber the property).
title
has two meanings: (1) the right to or ownership of the property, including the owner’s bundle of legal rights; and (2) evidence of that ownership by a deed
An appurtenance
(something that is transferred with or “runs with” the land) is a right or privilege associated with the property, although not necessarily a physical part of it
surface rights
Ownership rights in a parcel of real estate that are limited to
the surface of the earth
subsurface rights
The rights to the natural resources below the earth’s surface
air rights
The rights to use the space above the earth may be sold or leased independently, provided the rights have not been limited by law.
riparian rights
Common-law rights granted to owners of land along the course of a river, stream, or similar flowing body of water
littoral rights
littoral rights of own- ers whose land borders commercially navigable lakes, seas, and oceans
accretion
increases in the land resulting from the deposit of soil by the water’s action.
Erosion
is the gradual and sometimes imperceptible wearing away of the land by natural forces, such as wind, rain, and flowing water
doctrine of prior appropriation
the right to use any water, with the exception of limited domestic use, is controlled by the state rather than by the landowner adjacent to the water.
Personal property,
sometimes called personalty, is all the property that can be owned and that does not fit the definition of real property. IT IS MOVABLE
Factory-built housing
Factory-built housing is defined as dwellings that are not constructed at the site but are built off-site and trucked to a building lot where they are installed or assembled. Factory-built housing includes modular, panelized, precut, and mobile homes.
Chattels
Items of personal property, also called chattels, include such tangibles as chairs, tables, clothing, money, bonds, and bank accounts
Manufactured housing
Manufactured housing is that which is built specifically to the standards of the Department of Housing and Urban Development (HUD), although the term mobile home is still com- monly used.
Manufactured housing
Manufactured housing may be considered personal property, even though its mobility may be limited to a single trip to a park or development to be hooked up to utilities. Any type of factory-built or manufactured housing may, however, be considered real property if it becomes permanently affixed to the land
fructus naturales
Trees, perennial shrub- bery, and grasses that do not require annual cultivation are known as
It is real estate
fructus industriales
Annually cultivated crops such as fruit, vegetables, and grain are known as emblements, or fructus industriales, and are generally considered personal property
severance
An item of real property can become personal property by severance, which is the act of separating it from the land. For example, a growing tree is part of the land until the owner cuts it down, literally severing it from the property
annexation
It is also possible to change personal property into real property through the pro- cess known as annexation. For example, if a landowner buys cement, stones, and sand and mixes them into concrete to construct a sidewalk across the land, the landowner has converted personal property
deed and bill of sale
Real property is conveyed by deed, while personal property is conveyed by a bill of sale or receipt
A fixture
is personal property that has been so attached to land or a building that, by law, it becomes part of the real property.
Legal Tests of a Fixture
MARIA
Method of annexation: How permanent is the method of attachment? Can the
item be removed without causing damage to the surrounding property, or can
any damage caused by the removal be easily repaired?
■■ Adaptability of the item for the land’s ordinary use: Is the item being used as real
property or personal property? For example, a refrigerator is usually consid- ered personal property. However, if a refrigerator has been adapted to match the kitchen cabinetry, it may be considered a fixture.
■■ Relationship of the parties: In general, a court will favor a tenant over a land- lord, and a buyer over a seller.
■■ Intention of the person in placing the item on the land: This should be the most important consideration, but the actions of the tenant may not be consistent with the tenant’s earlier intention. If an installation is intended to be tempo- rary, it should not be attached in a way that appears to be permanent.
■■ Agreement of the parties: Have the parties agreed on whether the item is real or personal property in the provisions of an offer to purchase or lease?
trade or chattel fixture
An article owned by a tenant, attached to a rented space or building, and used in conducting a business is a trade fixture, or a chattel fixture
Trade fixtures must be removed on or before the last day the property is rented.
accession
Acquiring the property in this way is known as accession (this is related
to the legal principle of constructive annexation)
The four economic characteristics of land that affect its value as a product in the marketplace
are scarcity, improvements, permanence of investment, and area preference.
LAWS AFFECTING REAL ESTATE
■■ Contract law ■■ General property law ■■ Agency law ■■ Real estate license law ■■ Federal, state, and local laws and regulations (e.g., consumer protection, environmental, tax, land use, and zoning)
The purpose of real estate license laws is
to protect the public from fraud, dishonesty, and incompetence in real estate transactions
tenant
a person, business, group, etc., that pays to use another person’s property : someone who rents or leases a house, apartment, etc., from a landlord
