Real vs. Personal Property

Question 1

What is Real Property?

Answer 1

Land plus appurtenances that benefit the land.

Question 2

Define Appurtenances

Answer 2

Appurtenance means “belongs to or goes with”. They are things that transfer with the land when the land is transferred to another owner, such as improvements, rights, privilege’s, and fixtures.

Question 3

What are the 4 appurtenant rights?

Answer 3

1. Surface Rights
2. Subsurface Rights
3. Air Rights
4. Mineral Rights

Question 4

What is Personal Property?

Answer 4

Also referred to as “chattel”, is everything owned that is not real property and must be included in the sale contract if the buyer wishes to receive it.

Question 5

Are trees, bushes, house, garage, water, and the rights of ownership an appurtenant?

Answer 5

Yes, because all of those are permanent, belongs to and goes with the land. They all will be transferred over to the new owner.

Question 6

Economic Characteristics of Real Property are?

Answer 6

1. Scarcity
2. improvements
3. permanence of investment
4. location

Question 7

Define Scarcity

Answer 7

the supply of land is not limitless (shortage) hence the word “scarce”. Land at a given location, or of a particular quality is scarce.

Question 8

Define improvements

Answer 8

an improvement built on a parcel of land that affects the lands value and use. Example: renovating or adding buildings or structure

Question 9

Define permanence of investment

Answer 9

The capital and labor required to build an improvement may be a large investment, the return on an investment tends to be long and stable.

Question 10

Define location in economic characteristics

Answer 10

Sometimes called “area preference” and/or “situs”, location refers to people’s preferences of an area based on its history, reputation, scenic beauty, and convenience.

Question 11

Physical Characteristics of Real Property are?

Answer 11

1. immobility
2. indestructibility
3. uniqueness

Question 12

Define immobility

Answer 12

Geographic location of any given parcel of land can never be changed. It is fixed and therefore immobile (motionless, unmovable)

Question 13

Define indestructibility

Answer 13

Land is considered indestructible, the permanence of land tends to make investments in real property relatively stable. However, improvements on land can depreciate and reduce the land’s value.

Question 14

Define Uniqueness

Answer 14

Also known as “nonhomogeneity”, Uniqueness is the concept that no two parcels of land are alike or in the same location. Each parcel is geographically distinct.

Question 15

An owner may transfer these rights to another party while still retaining surface rights to the land itself.

Answer 15

Mineral and Air Rights

Question 16

Explain Water Rights

Answer 16

owners of land adjacent to rivers, lakes, or oceans have special common-law rights.
Where water is plentiful, states may rely on the simple parameters set by the common-law doctrines of Riparian & Littoral Rights
Where water is scarce, a state may control all but limit domestic use of water according to Doctrine of Prior Appropriation.

Question 17

Define Riparian Rights

Answer 17

Rights granted to owners of land along the course of a stream, river, or similar body of water. Owners has unrestricted rights to use the water as long as the owner does not interrupt or alter the flow of the water or contaminate it in any way.

Question 18

Define Littoral Rights

Answer 18

Rights granted to owners of land that border a standing body of water like lakes, seas, and oceans. Owners has unrestricted rights to use the water but only up to the average high-water mark.

Question 19

Are Water Rights appurtenant?

Answer 19

Yes, because it’s part of the land and once it is sold and transferred to a new owner so does the water rights.

Question 20

Define Doctrine of Prior Appropriation

Answer 20

Rights to water use is restricted when water is scarce with the exception of limited domestic use that’s controlled by the state, therefore landowners who want to use the limited amount of water must demonstrate to a state agency owners plans for the water use is for beneficial use, such as crop irrigation.

Question 21

Personal Property is…

Answer 21

Movable and not permanent like real property. it includes things such as chairs, tables, clothing, etc.

Question 22

Manufactured housing that is not permanently affixed to the land is…
Real property or Personal property?

Answer 22

Personal Property because it said it is not affixed to the land.
If it is movable it is Personal Property unlike Real Property where nothing can be movable because it is a part of the land.

Question 23

Define emblement

Answer 23

an annually growing crop, such as corn or grapes, that is produced and picked at harvest.

Question 24

Is emblement considered Real Property cause it’s attached to the land?

Answer 24

No, emblements are regarded as Personal Property

Question 25

If a tenant is growing crops on a leased land does the tenant have the right to harvest it even after the lease is terminated?

Answer 25

Yes, the crop is the tenants personal property and a landlord cannot terminate a lease without giving the tenant the right to enter the land to harvest any crops belonging to the tenant.

Question 26

How can a Personal Property become Real Property?

Answer 26

If the personal property becomes a Fixture.

Question 27

Define Fixtures

Answer 27

is Personal Property that has been affixed or attached to land or to an improvement so that it becomes a part of the Real Property, such as heating systems, kitchen cabinets, light fixtures, and plumbing.

Question 28

Can Fixtures be transferred with the property once sold?

Answer 28

Yes unless the contract specifically excludes them.

Question 29

Define Trade Fixtures

Answer 29

Property owned by a tenant, attached to a rented space or building and used in conducting a business, such as hydraulic lifts in an auto shop, dining booths in a restaurant, and Agricultural fixtures such as chicken coops and tool sheds are also Trade Fixtures.

Question 30

What's the difference between a Fixture and a Trade Fixture?

Answer 30

Fixture is Personal Property that has been made a part of the Real Property. While Trade Fixtures can be removable by tenants on or before the last day the property is rented, if they are not removed it will then become the real property of the landlord.

Question 31

Define Annexation in regards of Fixtures

Answer 31

How permanent is the method of attachment? and can it be removed without causing damage to the surrounding property or can the damage caused by the removal be easily repaired.

Question 32

Define Adaptation in regards of Fixtures

Answer 32

is the item used as real property or personal property? for example: a refrigerator is considered personal property, however if a refrigerator has been adapted to match the kitchen cabinetry it may be considered a fixture.

Question 33

Define Agreement in regards of Fixtures

Answer 33

Have the parties agreed to whether a particular item is real or personal property?

Question 34

Define Bill of Sale

Answer 34

an item of personal property that is transferred through a bill of sale and is not a part of a real estate purchase and sale agreement.