Real Property & Law

Question 1

What are the two classifications of Property?

Answer 1

Real or Personal Property

Question 2

What are the differences between Real and Personal Property? (2)

Answer 2

1. Method of Transfer
   - - Personal Property is transferred by a Bill of Sale
   - - Real Property is transferred through a Deed
2. Personal Property is moveable

Question 3

Define Personal Property?

Answer 3

Personal Property is All the property that can be owned and all that is not defined as Real Property

Question 4

Personal Property is also called?

Answer 4

Personalty.

Question 5

Define Factory-built Housing?

Answer 5

Any Dwelling that is not built on-site, but off-site and transported to the site of construction to be installed or assembled.

Question 6

What are the different types of Factory-built Housing?

Answer 6

Modular, panalized, precut, and sometimes mobile homes.

Question 7

All states have agencies that enforce and administer federal regulations on Manufactured Housing. T/F?

Answer 7

False. Most states, not all have agencies that enforce and administer the federal regulations on Manufacture Housing.

Question 8

What is meant by Manufactured Housing?

Answer 8

Housing built specifically to the standards of the Department of Housing and Urban Development (HUD)

Question 9

Factory-built Housing and Manufactured Housing can be both real or personal property. T/F?

Answer 9

True. Mobility makes the property personal and permanently fixed to the land makes it real property.

Question 10

When are components of Factory-built Housing considered part of real estate?

Answer 10

When the components are installed at the site.

Question 11

Once Manufactured Housing property becomes affixed to land it is considered part of the real estate. T/F?

Answer 11

True. Any property permanently affixed to a land is then considered real estate.

Question 12

What is Fractus Naturales?

Answer 12

Vegetation like trees, orchids , vineyards, and grass that does not require annual cultivation and are thus considered real estate

Question 13

What is Fractus Industriales?

Answer 13

Vegetation like crops fruits and grains that require cultivation and are thus considered personal property

Question 14

What is another name for Fractus Industriales?

Answer 14

Emblements.

Question 15

What is Severance?

Answer 15

Severance is the act of separating property from land and thus making it personal property.

Question 16

What is meant by Fixture?

Answer 16

A fixture is an item of personal property that has been attached to a property in a way that it makes it part of the real estate.

Question 17

Can an item that was made into a fixture be made again into personal property?

Answer 17

Yes, any item can be turn from real property to personal or personal to real property at anytime as long as it follows MARIA.

Question 18

What is the acronym MARIA?

Answer 18

1. Method of annexation.
   - The Method by which the item was fixed to the property and how permanent it is. Can it be removed with damage to property? And can the damage be easily fixed?
2. Adaptability of item to land.
   - An item is considered personal property unless it has been adapted to the property to be part of the real estate.
   - A Refrigerator is considered personal property unless it has been adapted match the kitchen cabinets.
3. Relationship of parties.
   - Generally the court will favor the tenant over landlord and buyer over seller.
4. Intention of use of item.
   - If an installation is meant to be temporary then it should not be attached in a way that it appears to be permanent.
5. Agreement of parties.
   - Have the parties agreed whether an item is personal or real estate?

Question 19

What is important for the seller to clarify and new tenant to consider?

Answer 19

The Seller needs to clarify what items are being sold at the beginning and New Tenant needs to consider that any installations that are meant for personal use be removable.

Question 20

Trade Fixtures In Practice. See Back.

Answer 20

A pizza parlor leases space in a small shopping center, and the restaurateur bolts a large iron oven to the floor of the unit. When the pizza parlor goes out of business or relocates, the restaurateur will be able to remove the pizza oven if the bolt holes in the floor can be repaired. The oven is a trade fixture. On the other hand, if the pizza oven was brought into the restaurant in pieces, welded together, and set in concrete, the restaurateur might not be able to remove it without causing structural damage. In that case, the oven might become a fixture and the real property of the building owner.

Question 21

What is Accession?

Answer 21

Accession is when a Trade Fixture becomes real property of the landlord when the fixture attached by the tenant is not removed by the last day of the rented building or space.

Question 22

If damage caused by the removal of a Trade Fixture cannot be fixed by the tenant, will it become the real property of the landlord?

Answer 22

Yes, if a Trade Fixture attached by the tenant cannot be removed without permanent damage to the building, then the fixture becomes the real property of the landlord.

Question 23

If a tenant of a rented space or building attaches an item to the property for business purposes, what is that called?

Answer 23

Trade Fixture. When an item is attached by the tenant to the rented property for business purposes then it is then a traded fixture.

Question 24

If a tenant who rented a space or building for business purposes wishes to move locations, but has traded fixtures on the rented property, what are the responsibilities of the tenant for that trade fixture?

Answer 24

1. The tenant is responsible for any damage caused by removing the traded fixture.
2. Tenant is required to remove any trade fixtures before or on the last day of rent. Any trade fixtures not removed by the last day of rent is then real property of the landlord.
3. Tenant is responsible for making sure that the trade fixture is removable if they plan on keeping the item once the lease is over.

Question 25

What is the difference between Fixtures and Trade Fixtures?

Answer 25

Fixtures are meant to be permanent and are owned by the property owner/landlord, thus fixtures are real property.

Trade Fixtures are attached to the property by the tenant for personal use and are meant to be removeable, thus trade fixtures are personal property

Question 26

What is Annexation?

Answer 26

The act of making personal property into real property.

Question 27

What are Chattels?

Answer 27

Items of personal property.

Question 28

What are items of personal property called?

Answer 28

Chattels.