Land, Real Property, and Real Estate

Question 1

Define Land

Answer 1

Earths surface extending downward to the center of the Earth and upward towards infinity.

Question 2

Define Real Estate

Answer 2

Everything in the definition of land plus all things permanently attached to it naturally or artificially. Artificial attachments are called improvements (fencing, buildings, walkways)

Question 3

Define Real Property

Answer 3

Real estate plus the interests, benefits, and rights included with real estate ownership

Question 4

What are the interests, benefits, and rights included in real estate ownership?

Answer 4

Possession (right to occupy the property), enjoyment (right to use the property in any legal way), exclusion (right to refuse others entry or use of), control (right to determine how the property will be used by owner or others), disposition (right to dispose of any interest in the property)

Question 5

Define personal property

Answer 5

Everything that is not real property

Question 6

What is real property

Answer 6

Land, and everything that is permanently attached to the land whether artificially or naturally.

Question 7

List the five tests (MARIA) used to determine whether an item is a fixture (Real property) or personal property.

Answer 7

Method of annexation,
Adaptability of item to lands use, Relationship of the parties,
Intention in placing item on land, Agreement of the parties

Question 8

Describe the method of annexation (attachment)

Answer 8

Is the item attached to the property and how permanent is the attachment?

Question 9

Describe adaptability of item to lands use

Answer 9

Adaptation is related to how the item is situated or adapted to the real property. EX: garage door openers or remote controls of other built in features attached to the property

Question 10

Describe relationship of the parties

Answer 10

The relationship of all parties is an element used to determine if an item is real or personal property.

Question 11

Describe trade fixtures

Answer 11

Removable personal property that a tenant attaches to leased commercial premises in order to conduct business

-essential for tenant business ops
-detachable without damaging the property
-moved out within a certain period of time

Question 12

Describe intention in placing item on land

Answer 12

The intention of the party who installed the item is regarded as the most important consideration in determining whether the item should stay or go.

Question 13

Describe agreement (bill of sale)

Answer 13

If parties have agreed that an item will stay or go then that meets the legal test, this agreement should be in writing, AKA a bill of sale.

Question 14

Describe emblements

Answer 14

Cultivated crops - they are personal property even tho they are part of the soil

Question 15

Define Severance

Answer 15

When an item that was real property becomes personal property by detaching it from the land

Question 16

Define annexation

Answer 16

The opposite of severance - personal property is attached to real property which makes it a fixture.