Chapter 2 Review-What is Real Estate?

Question 1

The definition of _______ includes the surface rights, subsurface rights, and air rights.

Answer 1

Land

Question 2

_____ _______ is defined as land and all appurtenances attached to the land.

Answer 2

Real Estate

Question 3

_____ _______ is defined as the land, the real estate, and the rights and interest associated with the ownership.

Answer 3

Real Property

Question 4

The ____________ _____________ of real estate are heterogeneity, immobility, and durability.

Heterogeneity means every parcel of land is unique: immobility means that ownership is transferred but not the itself: and durability means that the improvements may be destroyed but not the land.

Answer 4

Physical characteristics

Question 5

What are the four economic characteristics of real estate?

SLIP

Answer 5

Scarcity
Location
Improvements
Permanence of investment

Question 6

____________ means the availability of land in a particular area is finite or that there is limited availability of a particular land use, like zoning use. (ex; multifamily)

Answer 6

Scarcity

Question 7

The _______________ added to the land and the ____________ __ ______________ made for the site development such as streets, water lines, sewer lines, etc., will increase the value of the land.

Answer 7

Improvements

Permanence of investment

Question 8

What is another word for “location”?

Answer 8

Situs

Question 9

Personal property, which is moveable, is sometimes called?

Answer 9

Chattel

Chattel comes from the French word “chatel,” which comes from the Latin word “capitale.”

Question 10

What are two words used to describe “annual crops”?

which are considered personal property

Answer 10

Emblements or fructus industriales

Question 11

A fixture is an item of personal property that by its use or attachment is considered to be real estate.

What are the four tests to determine if an item is real property or personal property?

RAID

Answer 11

Relationship or contract of the parties
Adaptation to the use
Intension
Degree of attachment

RAID

Question 12

Personal property that is installed and used by a tenant in a trade or business is called?

Answer 12

trade fixture

Question 13

What are the three types of “present interest” in real estate?

Answer 13

Fee simple absolute
Fee simple defeasible
Life estates

Question 14

What are the two possible types of “future interest” in a Conventional Life Estate?
(grantor gets the property back):
(grantor names a 3rd party to receive the property)

Answer 14

Reversionary Interest

Remainder interest

Question 15

What is the highest form of ownership recognized by the law?

Answer 15

Fee simple absolute

Question 16

What are the two forms of fee simple defeasible estates?

Answer 16

*Fee simple with a special limitation
or Fee Simple Determinable
*Fee simple on a condition subsequent

Question 17

Fee simple with a special limitation (or is sometimes called fee simple determinable) is characterized by the what words?

Answer 17

“for as long as”

Question 18

Fee simple on a condition subsequent is characterized by the concept of what words?

Answer 18

“never to be used as”

Question 19

What is the “future interest” of a “fee simple with a special limitation” called? “so long as”

Answer 19

…the possibility of revert

Question 20

What is the “future interest” with a “fee simple on a condition subsequent” called?

Answer 20

…the possibility of re-entry

Question 21

A _____________ ______ __________ is set up by the grantor.

Ex: A son gives property to his mother for her life.

Answer 21

Conventional Life Estate

Question 22

A “life estate pur autre vie” means what?

Answer 22

A person has a life estate based on the life of a third party.
-Life of another

Question 23

What are a wife’s interest in her husband’s property called?

Answer 23

Dower Rights

Question 24

What are a husband’s interest in his wife’s property called?

Answer 24

Curtesy Rights

Question 25

What are the three private sources for restrictions or limitations on the bundle of rights?

Answer 25

Restrictive Covenants Homeowner Association Rules and Regulations Fee Simple Defeasible Estates

Question 26

Where can you find public information about each parcel of real estate?

Answer 26

Registry of Deeds County Recorder's, Clerk's or Treasurer's Office City Clerk's Office

Question 27

What does CC&R's stand for? (These are common private limitations that run with the land...these are recorded and transferred to the next land owner)

Answer 27

Covenants, Conditions and Restrictions

Question 28

What are the 4 government powers that regulate land use?

Answer 28

Police Power Eminent Domain Taxation Escheat

Question 29

_________ __________ gives the government the right to make and enforce laws to promote the general welfare, morals, health, and safety of the people.

Answer 29

Police Power

Question 30

________ __________ is the right for the government to take land for a public purpose.

Answer 30

Eminent Domain

Question 31

________________ is the process of taking the land.

Answer 31

Condemnation

Question 32

_____________ pays for the public services, such as schools, fire dept., police dept.

Answer 32

Taxation

Question 33

If someone dies with no will and no heirs can be found, the property will revert the state by the process of?

Answer 33

Escheat