Unit 2.1 - Real Estate Basics (My Flashcards)

Question 1

What are the two major property classifications?

Answer 1

Real (attached – nailed, glued, screwed, buried)

Personal (not attached – clothes, stuff plugged in, cars, furniture)

Land is real property.

Question 2

What are the 3 types of Real Estate (land) uses?

Answer 2

Residential - owner of land resides on the property

Income Producing - owner of the land generates income (rent)

Special Use - not used by owners for residential or income purposes (library, police office, schools, parks, etc.)

Question 3

Deeds only relate to what?

Answer 3

Real Property

Question 4

Deeds are ________.

Answer 4

Final

Question 5

What is the purpose of a deed?

Answer 5

To prove ownership, makes it public, for all to know

Question 6

When someone purchases or owns a property, what are the 5 rights (bundle of rights) that they have?

Answer 6

DEEP + C

1. Disposition (sell)
2. Enjoyment (use)
3. Exclusion (get out)
4. Possession (occupy)
5. Control (what it’s used for)

Question 7

The right, privilege or restriction that transfers with the ownership of land is what?

Answer 7

Appurtenance

Question 8

What does “runs with the land” relate to?

Answer 8

Appurtenances

Question 9

The Bundle of Rights are ______ of the property.

Answer 9

Appurtenances

Question 10

T/F

A seller is required to disclose appurtenances.

Answer 10

False – no law requires sellers to share information (termites, chemicals, mold)

Question 11

What’s another word for real property?

Answer 11

Fixture

Question 12

How do you make personal property part of the deal?

Answer 12

Write it into the contract

Question 13

Personal property is _________ from transactions unless a contract states otherwise.

Answer 13

excluded

Question 14

__________ are included in transactions unless a contract states otherwise.

Answer 14

Fixtures (real property)

Question 15

T/F

If an item is permanently attached AND was attached by the owner of the land, it is a fixture.

Answer 15

True

Question 16

T/F

If an item is permanently attached AND was attached by the owner of the land, it is personal property.

Answer 16

False (it’s a fixture)

Question 17

T/F

If an item is permanently attached AND was attached by a tenant, it is a fixture.

Answer 17

False – personal property

Question 18

T/F

A mobile home in NC can be deemed safe if all property permits and retrofitting is done.

Answer 18

False

A mobile home in NC is never going to be safe according to the NC building codes. A manufactured home in NC will never be safe for human occupancy. Never. Not under any circumstances according to the State of NC. It is exempt from inspection. You cannot get a building permit or inspector to inspect it. Will not meet building codes. It is not considered a structure.

Question 19

T/F

A manufactured home has been put on a foundation so it now conforms with building code.

Answer 19

False

cannot be done, no matter what. will never be to safety code.

Question 20

Donald grants ownership of a parcel of land to Mary and the deed states that the property may not be used for the purpose of development of a mobile home park. What is this an example of?

Answer 20

Fee Simple Subject to a Condition

Fee Simple Absolute means no new restrictions are added.

(Defeasible) Fee Simple Determinable says you can only use it for ONE thing. (you determine the use)

(Defeasible) Fee Simple Subject to a Condition says you cannot use it for a certain purpose.

Life Estate Pur Autre Vie is subject to losing ownership over time.

Question 21

Betty has rented a property in Raleigh through AirBnB for the first weekend of the NC State Fair. The rental contract is not specific on any other items other than a length of one weekend. This is an example of:

Answer 21

Estate for Years

Question 22

Cara and Jake purchase a 20 acre piece of land together. Cara will have 80% of the ownership interest in the property while Jake has the remaining 20% ownership interest. Which is not true?

Jake is allowed to occupy the property at any time
This type of shared ownership is owned as concurrent ownership.
Cara will have use of 16 acres while Jake has use of 4 acres.
Ownership of real property is unlimited in the number of owners.

Answer 22

Cara will have use of 16 acres while Jake has use of 4 acres.

Notes, choose the one that’s different.

True - Jake is allowed to occupy the property at any time
True - This type of shared ownership is owned as concurrent ownership.
False - Cara will have use of 16 acres while Jake has use of 4 acres.
True Ownership of real property is unlimited in the number of owners.

Question 23

What are emblements?

Answer 23

Annual crops / cultivated crops such as corn, specialty vegetables and tobacco are personal property known as emblements.

Question 24

What are trade fixtures?

Answer 24

Items used in a trade or business are considered trade fixtures. While they appear to meet the definition of a fixture, they remain personal property, unless abandoned by the tenant.

Question 25

What is Right of Disposition?

Answer 25

Disposition means the right to sell/transfer ownership of the property, and only the owner can do that.