U2.3 -4 - Real Property and Personal Property Flashcards
(45 cards)
What are the two main classifications of property?
Real property and personal property
Personal property is movable and not affixed to the land, while real property is attached to the land.
What is personal property also known as?
Personalty
Personal property includes all items that are not classified as real property.
What are chattels?
Items of personal property
Examples include chairs, tables, clothing, money, bonds, and bank accounts.
How is manufactured housing defined?
Dwellings built off site and trucked to a building lot for installation
Includes modular, panelized, precut, and mobile homes.
When does manufactured housing become real property?
When it becomes permanently affixed to the land
Until then, it is considered personal property.
What are the two classes of plants in property classification?
Real estate and personal property
Trees and perennial plants are real estate; annually cultivated crops are personal property.
What Latin term describes trees and perennial shrubbery attached to land?
Fructus naturales
This term signifies natural fruits of the land.
What are emblements?
Annually cultivated crops
Examples include wheat, corn, vegetables, and fruits.
In Illinois, when is possession of farmland typically transferred to the buyer?
On March 1
This date falls after the previous year’s crops are harvested.
What happens if farmland is sold before the crops are harvested?
The sales contract should specify if growing crops are included in the sales price
The buyer may need to reimburse the seller for crop-related costs.
What is severance in relation to real property?
The process by which an item of real property becomes personal property
Examples include cutting down a tree or harvesting a crop.
What is annexation in property classification?
The process of converting personal property into real property
Example: mixing cement and sand to create a sidewalk.
How is real property conveyed?
By deed
Personal property is conveyed by a bill of sale.
What is a fixture?
Personal property that has been affixed to land or a building
It becomes part of the real property.
What are the three tests used to determine if an item is a fixture? (3 A’s)
- Method of attachment
- Adaptation to real estate
- Agreement
These tests help establish intent regarding the item’s permanence.
What is a trade fixture?
An article owned by a tenant and attached to a rented space or used in conducting business
Trade fixtures are removable and differ from other fixtures.
What must happen to trade fixtures at the end of a lease term?
They must be removed on or before the last day of the lease term
If not removed, they become the landlord’s property through accession.
What is accession in property law?
Acquiring property by the addition of fixtures
Trade fixtures that remain become real property of the landlord.
True or False: A pizza oven bolted to the floor of a restaurant is considered a trade fixture.
True
It can be removed if the bolt holes can be repaired.
Are window blinds an attachment?
yes.
Personal property is property that is not movable and is affixed to or associated with the land.
True
False
Explanation
The statement is false. Personal property is property that is movable and is not affixed to or associated with the land.
An article owned by a tenant and attached to a rented space of building or used in conducting a business is a trade fixture.
True
False
Explanation
The statement is true. Some examples of trade fixtures include bowling alleys, store shelves, bars, and restaurant equipment.
What must licensees have regarding the laws that affect real estate?
A clear and accurate understanding
This includes knowledge of contracts, property law, agency law, and real estate license law.
What specific areas are important for real estate practitioners?
- Law of contracts
- Law of agency
- General property law
- State’s real estate license law
Federal regulations, tax laws, land-use, and zoning laws also play significant roles.
