Unit 2 - Real Property and The Law

Question 1

Land

Answer 1

the earths surface extending downward to the center of the earth and upward to space

Question 2

What Are The Physical Characteristics of Land?

Answer 2

immobility
uniqueness ( nonhomogeneity )
indestructibility

Question 3

Real Estate

Answer 3

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

Question 4

What Are The Bundle of Rights?

Answer 4

The concept of land ownership that includes ownership of all legal rights to the land

1. Right of Possession
2. Right of Control
3. Right of Exclusion
4. Right of Enjoyment
5. Right of Disposition

Question 5

Title

Answer 5

refers to the ownership of the property

Question 6

Deed

Answer 6

Is the document in which the title of the property is transferred by the owner

Question 7

Appurtenances

Answer 7

a right or privilege associated with the property

Question 8

What the characteristics that affect the economic value of the property?

Answer 8

1. Scarcity
2. Improvements
3. Permanence of Investment
4. Area Preference

Question 9

Surface Right

Answer 9

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

• does not include air rights or subsurface rights

Question 10

Air Rights

Answer 10

the right to use the open space above a property

• usually allowing the surface to be used for another purpose

Question 11

Water Rights

Answer 11

common law rights held by owners of land adjacent to rivers, lakes, or oceans

• includes restrictions on those rights and land ownership

Question 12

Riparian Rights

Answer 12

an owner’s rights in land that borders on or includes a stream, river, or lake

*these rights include access to and use of the water.

Question 13

Littoral Rights

Answer 13

a landowners claim to use water in large navigable lakes, seas and oceans adjacent to her property

Question 14

Accretion

Answer 14

the increase or addition of land by the deposit of sand or soil washed up naturally from a river, lake, or sea.

Question 15

Prior Appropriation

Answer 15

a concept in which water ownership is controlled by the state rather than by the landowner adjacent to the water

• to secure water rights, a landowner must demonstrate to a state agency that the owner’s plans are for beneficial use

Question 16

Personal Property

Answer 16

movable items ( also known as chattels )

• is not real property

Question 17

Manufactured Housing

Answer 17

dwellings that are built off site and trucked to a building lot where they are installed or assembled

Question 18

Emblements

Answer 18

that are produced annually through labor and industry

*also called fructus industriales

Question 19

Severance

Answer 19

changing an item of real estate to personal property by detaching it from the land

Question 20

Annexation

Answer 20

process of converting personal property into real property

Question 21

Fixtures

Answer 21

an item of personal property that has been converted to real property by being permanently affixed to the realty.

Question 22

Trade Fixtures

Answer 22

an article installed by a tenant under the terms of a lease that is removable by the tenant before the lease expires

Question 23

Accession

Answer 23

Acquiring title to additions or improvements to real property as a result of the annexation of fixtures

• trade fixtures that are not removed become the real property of the landlord

Question 24

What are the specific areas of law that are important in the real estate profession?

Answer 24

1. Contract Law
2. Agency Law
3. General Property Law
4. Specific State Real Estate License Law

Question 25

What plays a role in real estate transactions?

Answer 25

1. Federal Laws and Regulations 2. Federal, State and Local Tax Laws 3. State and Local Land-Use 4. Zoning Laws

Question 26

Contract Laws

Answer 26

governs the agreement between parties in a real estate transaction, brokerage, or agency relationship

Question 27

Agency Laws

Answer 27

lays out regulations or requirements for the representation of clients

Question 28

Federal Tax Laws

Answer 28

deductions of interest paid on home mortgages

Question 29

Environmental Law

Answer 29

regulations regarding hazardous substances and their dispositions

Question 30

Zoning Law

Answer 30

govern the use of land

Question 31

Real Estate License Law

Answer 31

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

Question 32

True or False All 50 states have passed laws that require real estate brokers and the their sales associates to be licensed.

Answer 32

True

Question 33

True or False only attorneys are trained and licensed to prepare documents defining or transferring rights in property and to give advice on matters of law

Answer 33

True

Question 34

Definition of Avulsion

Answer 34

the sudden removal or tearing away of land by an act of nature

Question 35

Definition of Erosion

Answer 35

the gradual wearing away of land by natural forces, such as rain

Question 36

Definition of Accretion | water rights

Answer 36

increase of land resulting from the deposit of soil by the waters action

Question 37

Definition of Water Rights

Answer 37

are common-law (historical) or statutory rights | held by owners of land adjacent to rivers, lakes, or oceans; restrictions on the rights of land ownership.

Question 38

According to law, a trade fixture is usually treated as A) a license. B) personalty. C) an easement. D) realty

Answer 38

B. Personalty

Question 39

What describes the act by which real property can be converted into personal property?

Answer 39

Severance

Question 40

Parking spaces in multiunit buildings, water rights, and similar things of value that convey with property are classified as? A) covenants. B) emblements. C) appurtenances. D) chattels

Answer 40

C. Appurtenances

Question 41

Laws that govern the ownership and use of water as well as the adjacent land vary among the states, but all are closely linked to

Answer 41

climatic and topographical conditions

Question 42

Real Propert

Answer 42

the interests, benefits, and rights inherent in | real estate ownership