Unit 2: Real Property and the Law

Question 1

Does “land” include naturally attached objects such as trees, as well as bodies of water found on it or under it?

Answer 1

Yes

Question 2

What is “land” defined as?

Answer 2

Land is defined as the earth’s surface to the center of the earth and the airspace above the land, including trees and water

Question 3

What is “real estate” defined as?

Answer 3

Real Estate is defined as land plus permanent human-made additions.

Question 4

What is “Real Property” defined as?

Answer 4

Real Property is defined as real estate plus bundle of legal rights.

The interests, benefits, and rights that are automatically included in the ownership of real estate.

Question 5

What are the 3 physical characteristics of land?

Answer 5

Immobility
Indestructibility
Uniqueness

Question 6

What is another word for “uniqueness”?

Answer 6

Nonhomogeneity

Question 7

Traditionally, ownership rights of real property are described as…?

Answer 7

The bundle of legal rights.

Question 8

What are the 5 rights that the bundle of legal rights include?

Answer 8

Right of Possession
Right to Control the Property (within framework of the law)
Right of Enjoyment
Right of Exclusion
Right of Disposition

Question 9

What are the two meanings of the word “title” as it relates to real property (real estate)?

Answer 9

1) The right of ownership of the property, including the owner’s bundle of legal rights

2) Evidence of that ownership by a deed

“Title” refers to the ownership of the property

Question 10

T/F The document by which the owner transfers title to the property is called…deed?

Answer 10

True

Question 11

What is an “appurtenance”?

Answer 11

An appurtenance is a right, privilege, or improvement belonging to, and passing with, the land/property; “runs with the land” or connected to the property.

Question 12

What are 2 examples of an “appurtenance”?

Answer 12

Parking spaces in multi-unit buildings
Water rights to a source not on the property

Question 13

Personal property is sometimes called what?

Answer 13

“Personalty”

Question 14

What are the two main differences between Real property and personal property?

Answer 14

Personal property is movable while real property is not.

Personal property is transferred by a bill of sale, real roperty is transferred by deed

Question 15

Items of personal property are also known as….what?

Answer 15

Chattels

Question 16

What are “emblements” as it relates to real estate?

Answer 16

Emblements are annually cultivated crops like fruit, vegetables, and grains

Question 17

What is another word for “emblements”?

Answer 17

Fructus Industriales

Question 18

The act of separating personal property from the land is known as….what?

Answer 18

Severance

Question 19

The process of converting personal property into real property is known as…what?

Example: a landowner buys cement, stones, and sand and mixes them intro concrete to construct a sidewalk across the land, the landowner has converted that personal property into real property (sidewalk)

Answer 19

annexation

Question 20

What are the 5 legal tests of a fixture?

Answer 20

Method of attachment
Adaptability of item to land’s use
Relationship of Parties
Intention in placing item on the land
Agreement of the parties

Question 21

What is a “Trade Fixture”?

Answer 21

A trade fixture is an article installed by a tenant under the terms of a lease that is removable by the tenant before the lease expires

Question 22

What are “riparian rights”

Answer 22

These are an owner’s rights in land that borders on or includes a stream, river, or lake. They include access to and use of the water.

Question 23

What are “littoral rights”?

Answer 23

These are a landowner’s claim to use water in large navigable lakes and oceans adjacent to their property. Also is the ownership rights to land bordering these bodies of water up to the high watermark

Question 24

What is “accretion”?

Answer 24

Accretion is the addition of land by the deposit of sand or soil washed up naturally from a body of water.

Question 25

What is “reliction”?

Answer 25

Reliction is the increase of a landowner’s property by the receding of an adjacent body of water

Question 26

What is “erosion”?

Answer 26

Erosion is the gradual wearing away of the land by natural forces - wind, rain, etc

Question 26

What is the opposite of erosion?

Answer 26

Avulsion

Question 27

What is “avulsion”

Answer 27

Avulsion is the sudden removal of soil by an act of nature

Question 28

What is “prior appropriation”?

Answer 28

This is a concept of water ownership in which the landowners right to use available water is based on a government administered permit system

Question 29

What are the 4 economic characteristics of real estate?

Answer 29

Scarcity
Improvements
Permanence of Investment
Area Preference (Situs)

Question 30

What are the 5 laws that affect real estate?

Answer 30

Contract Law
General Property Law
Agency Law
Real Estate License Law
Federal/State/Local Law