Unit 2 - part III Flashcards Preview

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Flashcards in Unit 2 - part III Deck (13):
1

What is factory-built housing?

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

2

In what categories trees and crops fall into?

Trees and crops generally fall into one of two classes:

1. Fructus naturales
2. Emblements or fructus industriales

3

What is fructus naturales?

Trees, perennial shrubbery, and grasses that do not require annual cultivation are known as fructus naturales.

These items are considered RE.

4

What is emblements or fructus industriales?

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

The current owner or tenant is entitled to harvest the crops that result from that individual's labor.

5

What is severance?

An item of real property can become personal property by severance, which is the act of separating it from the land.

(a growing tree is part of the land until the owner cuts it down, literally severing it from the property.)

6

What is annexation?

It is also possible to change personal property into real property through the process known as annexation.

(cement, stones and sand mixed into concrete to construct a sidewalk across the land.)

7

What is fixture?

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

(heating systems, elevator, radiators, kitchen cabinets, light fixtures, plumbing).

8

What is Legal Tests of a Fixture?

- In determining whether an item is a fixture, and thus part of real estate, courts use the following five basic tests, which can be remembered by acronym MARIA:

1. Method of annexation: how permanent is the method of attachment? Can the item be removed without causing damage or can any damage caused by removal be easily repaired?

2. Adaptability of the item for the land's ordinary use: Is the item being used as real or personal property? For example, a refrigerator is usually considered personal property. However, if a refrigerator has been adapted to match the kitchen cabinetry it may consider a fixture.

3. Relations of the parties: in general, a court will favor a tenant over a landlord, and a buyer over a seller.

4. 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 temporary, it should not be attached in a way that appears to be permanent.

5. Agreement of the parties: have the parties agreed on whether the item as real pr personal property in the provisions of an offer to purchase or lease?

9

What is chattel?

Personal property is all the property that can be owned and that doesn't fit the definition of real property. Personal property is movable.

Items of personal property are also called chattels, and includes tangibles such chairs, tables, clothing, money, bank accounts...

10

What is a trade fixture or a chattel fixture?

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

(hydraulic lifts in an auto repair shop, dinning booths in a restaurant, lane and pin-setting equipment in a bowling alley...)

11

What is accession?

Trade fixtures must be removed on or before the last day the property is rented. The tenant is responsible for any damage caused by removal of a trade fixture. If they are not removed, become the real property of the landlord.

Acquiring the property in this way is know is as accession.

12

What is economic characteristic of land that affect its value?

1. Scarcity
2. Improvements
3. Permanence of investment
4. Area preference (location, location, location)

13

What are physical characteristics of land?

1. Immobility
2. Indestructibility
3. Uniqueness (nonhomogeneity).