Unit 2

Question 1

Land

Answer 1

defined as the earth’s surface extending downward to the center of the earth and upward to infinity.

Question 2

Real estate

Answer 2

defined as land plus all human-made improvements to the land that are permanently attached (annexed) to it

Question 3

An improvement to land

Answer 3

any artificial thing attached on or below ground, such as a building, fence, water line or sewer pipe, as well as growing things that are made part of the landscaping

Question 4

Real property

Answer 4

defined as the interests, benefits, and rights that are automati- cally included in the ownership of real estate.

Question 5

Bungle of the legal rights

Answer 5

■ right of possession,
■ right to control the property within the framework of the law,
■ right of enjoyment (to use the property in any legal manner),
■ right of exclusion (to keep others from entering or using the property), and
■ right of disposition (to sell, will, transfer, or otherwise dispose of or encum-
ber the property).

Question 6

title

Answer 6

has two meanings: (1) the right to or ownership of the property, including the owner’s bundle of legal rights; and (2) evidence of that ownership by a deed

Question 7

An appurtenance

Answer 7

(something that is transferred with or “runs with” the land) is a right or privilege associated with the property, although not necessarily a physical part of it

Question 8

surface rights

Answer 8

Ownership rights in a parcel of real estate that are limited to
the surface of the earth

Question 9

subsurface rights

Answer 9

The rights to the natural resources below the earth’s surface

Question 10

air rights

Answer 10

The rights to use the space above the earth may be sold or leased independently, provided the rights have not been limited by law.

Question 11

riparian rights

Answer 11

Common-law rights granted to owners of land along the course of a river, stream, or similar flowing body of water

Question 12

littoral rights

Answer 12

littoral rights of own- ers whose land borders commercially navigable lakes, seas, and oceans

Question 13

accretion

Answer 13

increases in the land resulting from the deposit of soil by the water’s action.

Question 14

Erosion

Answer 14

is the gradual and sometimes imperceptible wearing away of the land by natural forces, such as wind, rain, and flowing water

Question 15

doctrine of prior appropriation

Answer 15

the right to use any water, with the exception of limited domestic use, is controlled by the state rather than by the landowner adjacent to the water.

Question 16

Personal property,

Answer 16

sometimes called personalty, is all the property that can be owned and that does not fit the definition of real property. IT IS MOVABLE

Question 17

Factory-built housing

Answer 17

Factory-built housing is defined as dwellings that are not constructed at the site but are built off-site and trucked to a building lot where they are installed or assembled. Factory-built housing includes modular, panelized, precut, and mobile homes.

Question 18

Chattels

Answer 18

Items of personal property, also called chattels, include such tangibles as chairs, tables, clothing, money, bonds, and bank accounts

Question 19

Manufactured housing

Answer 19

Manufactured housing is that which is built specifically to the standards of the Department of Housing and Urban Development (HUD), although the term mobile home is still com- monly used.

Question 20

Manufactured housing

Answer 20

Manufactured housing may be considered personal property, even though its mobility may be limited to a single trip to a park or development to be hooked up to utilities. Any type of factory-built or manufactured housing may, however, be considered real property if it becomes permanently affixed to the land

Question 21

fructus naturales

Answer 21

Trees, perennial shrub- bery, and grasses that do not require annual cultivation are known as

It is real estate

Question 22

fructus industriales

Answer 22

Annually cultivated crops such as fruit, vegetables, and grain are known as emblements, or fructus industriales, and are generally considered personal property

Question 23

severance

Answer 23

An item of real property can become personal property by severance, which is the act of separating it from the land. For example, a growing tree is part of the land until the owner cuts it down, literally severing it from the property

Question 24

annexation

Answer 24

It is also possible to change personal property into real property through the pro- cess known as annexation. For example, if a landowner buys cement, stones, and sand and mixes them into concrete to construct a sidewalk across the land, the landowner has converted personal property

Question 25

deed and bill of sale

Answer 25

Real property is conveyed by deed, while personal property is conveyed by a bill of sale or receipt

Question 26

A fixture

Answer 26

is personal property that has been so attached to land or a building that, by law, it becomes part of the real property.

Question 27

Legal Tests of a Fixture MARIA

Answer 27

Method of annexation: How permanent is the method of attachment? Can the item be removed without causing damage to the surrounding property, or can any damage caused by the removal be easily repaired? ■■ Adaptability of the item for the land’s ordinary use: Is the item being used as real property or personal property? For example, a refrigerator is usually consid- ered personal property. However, if a refrigerator has been adapted to match the kitchen cabinetry, it may be considered a fixture. ■■ Relationship of the parties: In general, a court will favor a tenant over a land- lord, and a buyer over a seller. ■■ Intention of the person in placing the item on the land: This should be the most important consideration, but the actions of the tenant may not be consistent with the tenant’s earlier intention. If an installation is intended to be tempo- rary, it should not be attached in a way that appears to be permanent. ■■ Agreement of the parties: Have the parties agreed on whether the item is real or personal property in the provisions of an offer to purchase or lease?

Question 28

trade or chattel fixture

Answer 28

An article owned by a tenant, attached to a rented space or building, and used in conducting a business is a trade fixture, or a chattel fixture Trade fixtures must be removed on or before the last day the property is rented.

Question 29

accession

Answer 29

Acquiring the property in this way is known as accession (this is related to the legal principle of constructive annexation)

Question 30

The four economic characteristics of land that affect its value as a product in the marketplace

Answer 30

are scarcity, improvements, permanence of investment, and area preference.

Question 31

LAWS AFFECTING REAL ESTATE

Answer 31

``` ■■ Contract law ■■ General property law ■■ Agency law ■■ Real estate license law ■■ Federal, state, and local laws and regulations (e.g., consumer protection, environmental, tax, land use, and zoning) ```

Question 32

The purpose of real estate license laws is

Answer 32

to protect the public from fraud, dishonesty, and incompetence in real estate transactions

Question 33

tenant

Answer 33

a person, business, group, etc., that pays to use another person's property : someone who rents or leases a house, apartment, etc., from a landlord