Chapter 8 Physical Characteristics of Real Property Flashcards

Chapter 8 Physical Characteristics of Real Property Flashcards MARIA. Method of annexationCan the item be removed without causing severe damage to the property? Removing the kitchen cabinets would cause significant property damage.Land Rights and Ownership Boundariessurface rights, air rights, Subsurface rights or mineral rights, Riparian rights, Littoral rights Intangible propertyrepresents items that do not have a physical form yet has a value such as stocks and bonds, a business name, or a land contract surface rightsThe ownership rights that apply to the surface of the land If a fixture is removed, then it becomes personal property.When real property is turned into personal property Land fixtures The furniture, pots and pans, artwork, and all the other stuff. Does not transfer with the real property unless it is individually listed in the sales contract fixture Lack of SimilarityEvery parcel of land on this planet is unique. Even in a subdivision where all the parcels are precisely the same size, there are topographical differences, differences in flora and fauna, and above all, differences in location.s include mechanical systems, built-in appliances, kitchen cabinets, faucets, and light fixtures emblements Tangible propertyphysical items such as a sofa, car, or filing cabinet Riparian rightsallow the use of a river or stream(riparian rights grant unrestricted use of the water as long as the owner does not contaminate, interrupt, or 81 alter the flow of the water. The state owns commercially navigable rivers, and adjacent landowners possess only up to the water's edge) ImmobilityReal estate is fixed. It is not going anywhere. While dirt can be hauled off the land, the trees can be cut down, and the improvements can be scrape off; the geographical location of the property is fixed, immobile, and permanent.MARIA. AdaptabilityCould the removed item be reasonably adapted to be used somewhere else? Is it being used as personal property? A built-in dishwasher that matches the kitchen cabinets cannot easily be adapted to a new location.avulsionA sudden loss of land, and this can be caused by an earthquake, mudslide, or a hurricane IndestructibilityLand is indestructible, has and will be around forever. It can be bombed, strip-mined, or even washed away in a flood, but the ownership of the parcel remains constant.If a trade fixture is left in the building after a business vacates, it then becomes real property So how do you know if it is a fixture or personal property?The court system uses five basic tests. The answers to the

following questions can quickly identify personal property.

s a parcel of land plus all the permanently attached improvements plus all the interests, benefits, and rights that come with the ownership. Real estate agents are technically selling real property not real estate, because the transaction includes the rights to sell, use, possess and control the property.personal property or chattel MARIA. IntentionWas the installation intended to be permanent or temporary? The difference between the placement of a lamp and a ceiling light is an example of intention.anything that is permanently rooted to the ground like trees and shrubs Building fixtures Subsurface rights or mineral rightsthe rights to any natural resources below the surface(As long as the property owner retains all the mineral rights, they own a sliver of the planet all the way down to the earth's core. If they do not, then they own the surface of the land, and someone else owns some or all of the natural resources below their feet.)(An oil or gas lease gives a company permission to conduct extraction operations. The oil or gas company will pay the property owner an annual flat fee. If the company ever finds any oil or gas in the future, the property owner will receive a percentage of its value) Three physical characteristics of land Immobility Lack of Similarity Indestructibility Real Estate vs. Real PropertyReal estate MARIA. AgreementIs there an agreement between the buyer and the seller as to whether it is personal or real property?Because a business cannot operate without the business equipment, the trade fixtures are considered personal property and transfer with the going concern, or business, and not with the commercial real estate. An example of trade fixtures are the coolers in a grocery store; the booths in a restaurant, or the conveyors in a factory.(Any trade fixtures that would be impractical to remove would be considered a building fixture. An example may be the ventilation system in a kitchen) accession MARIA. RelationshipWhat is the relationship to the item? Because the chandelier has been in the family for three generations, it has an added relationship to the seller and could be considered as personal property.manufactured homepre-constructed in a factory and is supported by a fixed steel chassis and detachable wheels.Most manufactured homes are considered personal property and are transferred like a car.(There are, however, some exceptions to this rule. A manufactured home can become

real property if it meets these two qualifications: (1) it is

permanently attached to a fixed foundation; and (2) the certificate of title has been surrendered, and the owner filed an affidavit with the local lands department. A manufactured home is classified as real property if it is included in the property taxes. That does not mean, however, that it can be mortgaged. Much depends on state law and the lender.) a parcel of land plus all the permanently attached improvements. A house, garage, driveway, well, septic, and fence are all examples of an improvement.Real Property Annual crops. Considered personal property. Crops belong to whoever planted them, even if they cannot be harvested