Unit 2 Flashcards
One defining difference between real estate (real property) and personal property is that real estate includes
land and all things permanently attached, while personal property includes property that is movable
A bookstore owner rents space in a commercial building. The bookstore has large tables fastened to the walls where customers are encouraged to sit and read. Shelves create aisles from the front of the store to the back. The shelves are bolted to both the ceiling and the floor. Which is these BEST characterizes tables and shelves?
a. The shelves and the tables are trade fixtures and will be sold when the owner sells the building.
b. The shelves and the tables are trade fixtures and must be removed before the bookstore’s lease expires; the tenant is responsible to the landlord for any damage that their removal causes to the premises.
c. Because the bookstore is a tenant, the shelves and the tables are fixtures and may not be removed, except with the owner’s permission.
d. Because the shelves and tables are attached to the building, they are treated the same way as other fixtures.
B. The shelves and tables are trade fixtures and must be removed before the bookstore’s lease expires; the tenant is responsible to the landlord for any damage that their removal causes to the premises.
Which of these is considered the MOST important characteristic of land?
a. Air rights
b. permanence
c. subsurface rights
d. location
D. Location
Another term for personal property is?
Chattel
When an owner of real estate sells the property to someone else, which of the “sticks” in the bundle of legal rights is she using?
Disposition
A man inherited a farm from his uncle. As a new owner, the first thing he did with the vacant property was to remove all the topsoil, which he sold to a landscaping company. He then removed a thick layer of limestone and sold it to a construction company. Finally, he dug 40 feet into the bedrock and sold it for gravel. When the farm owner died, he left the farm to his daughter. Which of these statements is TRUE?
A) The daughter inherits nothing bc the farm no longer exists.
B) The daughter owns the gravel, limestone, and topsoil, no matter where it is.
C) The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth.
D) The man’s estate must restore the land to its original condition
C) The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth.
The buyer and the seller of a home are debating whether a certain item is real or personal property and should convey with the house; the seller says it is personal property and would not convey without a separate bill of sale. In determining whether an item is real or personal property, a court would NOT consider…
a. whether its removal would cause severe damage to the real estate
b. whether the item is clearly adapted to the real estate
c. the cost of the item when it was purchased
d. any relevant agreement of the parties in their contract of sale
C. The cost of the item when it was purchased.
Which of these BEST describes the economic characteristics of real estate?
a. Scarcity, improvements, and location
b. Location, uniqueness, and indestructibility
c. scarcity, immobility, and improvements
d. attachment, location, and improvements
A. Scarcity, improvements, and location
An owner decides to sell her house and takes the antique front door with her when she moves. In the absence of any provision in the contract, is the owner allowed to remove the door?
No, this act of severance is not allowed at time of selling because the door is a fixture.
When moving into a newly purchased home, the buyer discovered that the seller had taken the electric lighting units that were installed over the vanity in the bathroom. The seller had not indicated in the sales contract that these would be removed. Which of these is TRUE?
a. The lighting fixtures belong to the seller because he installed them as personal property.
b. These lighting fixtures are considered trade fixtures and could be removed.
c. Installed lighting units normally are considered real estate fixtures.
d. Orignial lighting fixtures are real property, but replacement lighting is personal property and can be taken by the seller.
c. Installed lighting units normally are considered real estate fixtures.
A homeowner is building a new enclosed front porch on his home. A truckload of lumber has been left in his driveway for use in building the porch. At this point, the lumber is considered
personal property.
Intent of the parties, method of attachment, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is
a fixture or personal property.
Parking spaces in multiunit buildings, water rights, and other improvements are classified as
appurtenances.
A person buys a parcel of natural forest. The person then immediately cuts down all the trees and contracts a large shed out of old sheets of rusted steel for storing turpentine, varnish, and industrial waste products. Which of these statements is TRUE about this rusty shed?
a. The shed is personal property
b. If the owner is in the business of storing toxic substances, the shed is a trade fixture.
c. Altering the property in order to construct a shed is not included in the bundle of rights.
d. The owner’s action constitutes improvement of the property.
D. The owner’s action constitutes improvement of the property.
The phrase bundle of legal rights is properly included in
the definition of real property
