Unit 2

Question 1

Land

Answer 1

actual surface and natural objects (subsurface and air rights)

Question 2

Real Estate

Answer 2

includes natural land and artificial attachments/improvements

Question 3

Improvement

Answer 3

any addition to land, whether it increase or decreases the value of the property

Question 4

Real Property

Answer 4

Includes land and real estate plus any rights and interest a property owner has. Conveyed by Deed

Question 5

Appurtenance

Answer 5

Anything that is not a part of the property but related to it. example, someone has a license to fish on your property, parking space, water rights. Appurtenance usually transfers from property owner to buyer when property is sold

Question 6

Subsurface Rights

Answer 6

Below the Earth’s surface, rights to oil and minerals; can be sold individually

Question 7

Air Rights

Answer 7

Also can be sold independently provided they aren’t controlled by laws

Question 8

Ownership Rights - “Bundle of Legal Rights”

Answer 8

These rights come with property ownership:
Right of possession (live in house)
Right to use and enjoyment
Right to control property in compliance w/ laws
Right of Exclusion (keep others from entering property)
Right of Disposition (sell/transfer/donate etc)

Question 9

Personal Property/Personalty/Chattels

Answer 9

Ex. appliances, furnishings. Usually movable. Conveyed by Bill of Sale

Perennials are real property
Annuals/Crops are personal property

Question 10

*Severance

Answer 10

Real Property can become personal property. ex. trees, plants, crops - chopped down tree and take it with you

Question 11

*Annexation

Answer 11

Personal Property can become real property. ex. wood to build deck, cement patio - buy supplies and once you put patio in it becomes real property

Question 12

*Fixture

Answer 12

Personal property that is affixed to real property and becomes part of real property. ex HVAC System, plumbing; permanent part of building, owned by owner of property

Question 13

*Legal Tests of Fixtures

Answer 13

Method of attachment
Adaptation to real estate - how is it being used, as part of property?
Agreement between parties

Question 14

*Trade Fixture

Answer 14

Fixtures used in course of business, ex bakery installs oven; **must be removed at end of term and tenant must repair any damage from removal; owned by tenant of property; removable

Question 15

Accession

Answer 15

When you become owner of property when tenant does not remove the trade fixture

Question 16

Manufactured Housing

Answer 16

Housing that is built off site and delivered to lot where it is assembled

Question 17

*Real Estate has 7 Basic Characteristics

Answer 17

Economic or Physical.

Question 18

*Economic Characteristics of Real Estate

Answer 18

Affect the investment and market value of the land

• Scarcity - land is scarce, supply in area is limited
• Improvements - building on land will increase value of land
• Permanence of investment - low increase because its a low term investment; slow and stable climb
• ** - Location/SITUS - determines value of real estate

Question 19

*Physical Characteristics of Real Estate

Answer 19

• Immobility - land can’t be moved
• Indestructability - land can’t be destroyed
• Uniqueness - no two pieces of land are identical