Unit 2

Question 1

Land

Answer 1

earth’s surface down to the center of the earth and the airspace above the land

Question 2

Real Estate

Answer 2

the land + any permanent improvements on the land (human made)

Question 3

Real Property

Answer 3

interests, benefits, and rights that are automatically included in the ownership of real estate (bundle of legal rights); real estate + bundle of rights

Question 4

Bundle of Rights

Answer 4

legal rights you have as a homeowner

Question 5

Subsurface

Answer 5

the minerals and substances that lie far below the earth’s surface

Question 6

airspace

Answer 6

the air above the earth all the way into space

Question 7

Physical characteristics of land

Answer 7

1. immobility
2. indestructibility
3. uniqueness

Question 8

another word for uniqueness

Answer 8

nonhomogeneity

Question 9

What are the bundle of rights?

Answer 9

1. right of possession
2. Right to control the property within the framework of the law
3. Right of enjoyment
4. Right of exclusion
5. Right of disposition

Question 10

Right of enjoyment

Answer 10

to use the property in any legal matter

Question 11

Right of exclusion

Answer 11

to keep others from entering or using the property

Question 12

Right of disposition

Answer 12

to sell, will, transfer, or otherwise dispose of or encumber the property

Question 13

Another word for immobility

Answer 13

SITUS

Question 14

title to real property

Answer 14

legal right of ownership including bundle of rights

Question 15

Deed

Answer 15

document that is evidence of ownership

Question 16

What are the 2 meanings of title

Answer 16

1. the right to or ownership of the property including the bundle of rights
2. evidence of that ownership by a deed

Question 17

appurtenance

Answer 17

a right or privilege associated with the property, although not necessarily a physical part of it (runs with the title)

Question 18

Surface rights

Answer 18

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

Question 19

Subsurface rights

Answer 19

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

Question 20

Air rights

Answer 20

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 21

Water rights

Answer 21

common law or statutory rights held by owners of land adjacent to rivers, lakes or oceans and are restrictions of the right of land ownership

Question 22

How far do air rights go?

Answer 22

to infinity

Question 23

What allows flight in homeowner’s airspace?

Answer 23

air traffic laws

Question 24

who owns water?

Answer 24

government

Question 25

Riparian rights

Answer 25

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

Question 26

Littoral rights

Answer 26

belong to owners of land that border navigable lake, sea or ocean

Question 27

erosion

Answer 27

slow removal of land by natural action of water

Question 28

avulsion

Answer 28

removal of land by sudden natural action of water

Question 29

accretion

Answer 29

addition of land by sudden natural action of water

Question 30

Doctrine of Prior Appropriation

Answer 30

grants the state the right to determine ownership and use of water

Question 31

Four economic characteristics of real property

Answer 31

1. scarcity 2. improvement 3. permanence 4. area preference

Question 32

Scarcity

Answer 32

land is finite

Question 33

improvement

Answer 33

buildings add value and determine use of an area

Question 34

Permanence of investment

Answer 34

permanent improvements such as electricity or sewage

Question 35

Area preference (Situs)

Answer 35

area preference and geography; location, location, location

Question 36

What is the most important characteristic of land?

Answer 36

situs

Question 37

what affects property value?

Answer 37

economic characteristics

Question 38

How does real property transfer?

Answer 38

by title

Question 39

how does personal property transfer?

Answer 39

by bill of sale

Question 40

chattels

Answer 40

personal property

Question 41

What determines real or personal property

Answer 41

state law

Question 42

real property plants

Answer 42

fructus naturales

Question 43

personal property plants

Answer 43

emblements, fructus industriales

Question 44

severence

Answer 44

separating real property from the land, becoming personal property

Question 45

annexation

Answer 45

changing personal property to real property by installing it

Question 46

what types of plants are real estate?

Answer 46

trees, perennial shrubbery, grasses

Question 47

what types of plants are personal emblements?

Answer 47

annually cultivated crops

Question 48

Fixtures

Answer 48

starts out as personal property that is so permanently attached to land or building that, by law, it becomes part of the real property (way of annexation)

Question 49

Legal tests of a fixture

Answer 49

1. method of annexation 2. adaptability of item to land's use 3. relationship of parties 4. intention in placing item on land 5. agreement of the parties

Question 50

Is the buyer or seller favored?

Answer 50

buyer

Question 51

Is the tenant or landlord favored?

Answer 51

tenant

Question 52

What is the most important legal test of a fixture?

Answer 52

agreement of parties

Question 53

Trade fixtures

Answer 53

an article owned by a tenant, attached to a rented space or building, and used in conducting a business

Question 54

Where are trade fixtures normally used?

Answer 54

business or commercial real estate

Question 55

What happens if trade fixtures are not removed?

Answer 55

become property of landlord

Question 56

accession

Answer 56

acquiring trade fixtures because they were not removed

Question 57

How do trade fixtures differ from other fixtures?

Answer 57

1. belong to owner of real estate but are owned and installed by tenant for tenant use 2. considered permanent part of build but are removable; appear to be fixtures

Question 58

What are laws affecting real estate?

Answer 58

1. contract law 2. general property law 3. agency law 4. real estate license law 5. federal state and local laws and regulations

Question 59

Situs

Answer 59

preference for a location; location, location, location