Homework Session 1 Unit 2 - Real Property and the Law Scenarios

Homework Session 1 Unit 2 - Real Property and the Law (Scenarios) Flashcards A seller asked a real estate professional to draw up several documents relating toseller financing. Under these circumstances, the real estate professional shouldA. ask the broker for assistance.B. draw up the documents.C.ignore the instructions.D. refer the seller to an attorney.

• The answer is - to refer the seller to an attorney. Real

estate professionals should be careful not to practice law unless they are, in fact, licensed attorneys and are employed to act in that capacity.Manufactured housing is the term used for a factory-built home as ofA. 1976.B. 1980.C. 1987.D. 1990.

• The answer is - 1976. With the passage of The National

Manufactured Housing Construction and Safety Standards Act of 1976, manufactured homes became federally regulated.A rural landowner has posted a number of "No Trespassing" and "No Hunting" signs on his property.Which "stick" in the bundle of rights gives the farmer this authority?A. Exclusion C. ControlB. Enjoyment D.Disposition

• The answer is - exclusion. A real estate owner has the

inherent right to exclude others from the property, although this right is not absolute. An adjacent property owner may have an easement right to use the property.A sales contract explicitly excludes some rose bushes from the sale. This provision is necessary because the rose bushes are ordinarily considered to beA. a trade fixture.B.personal property.C. an emblement.D. real estate.

• The answer is - real estate. Because the rose bushes

are perennial shrubs, they are considered real estate.A right or privilege tied to real property, although not necessarily part of the property, is calledA. an emblement.B. a trade fixture.C. an appurtenance.D. a deed.

• The answer is - an appurtenance. An appurtenance is a

right or privilege association with the property, although not necessarily a part of it. An emblement or trade fixture is a tangible item on the property. The deed is a document that transfers title.The most important economic characteristic of land isA.permanence. C. uniqueness.B. location. D. possession.

• The answer is - location. Location is sometimes called

area preference or situs.Methods of annexation, adaptation of the item, and agreement of the parties are the legal tests for determining whether an item isA. a chattel or an emblement.B. real property or personal property.C. land or real estate.D.fructus naturales or fructus industriales.

• The answer is - real property or personal property.

Whether an item is a fixture or personal property may be determined by method of annexation, adaptation to real estate, or agreement of the parties.Another word for uniqueness isA. scarcity.B.non-homogeneity.C. fructus industrials.D. immobility.

• The answer is - non-homogeneity. Uniqueness, or

non-homogeneity, indicates that no two parcels of land are alike.To determine whether an item is a fixture, the MOST important test is whetherA. the effort needed to remove the item is significant.B. the item must be dismantled for removal.C. the value of the item is high.D. the person who installed it intended for it to be permanent.

• The answer is - the person who installed it intended for it

to be permanent. The intent of the person who installed the item is the most important test of whether the item is a fixture.Which of these is an example of an economic characteristic of land?A. ImmobilityB. IndestructibilityC. UniquenessD.

Scarcity

• The answer is - scarcity. Immobility, indestructibility, and

uniqueness are physical characteristics, while scarcity is an

economic characteristic.All of these are included in the bundle of rights EXCEPTA.possession.B. control.C. exclusion.D. expansion.

• (note the word EXCEPT in the question) The answer is -

expansion. The bundle of rights includes possession, control, exclusion, enjoyment, and disposition. There is no right to expansion, except by acquiring another parcel.Land rights, mineral rights, and air rights are included in the definition ofA. attachments.B. real property.C. littoral rights.D. improvements

• The answer is - real estate. Land, including subsurface

and air rights, and improvements are included in the definition of real estate.An important distinction between real and personal property, is that real property is transferred byA. a bill of sale. C. a receipt.B. a purchase order. D. a deed.

• The answer is - a deed. An important distinction

between real and personal property is that real property is transferred by deed and personal property is transferred by a bill of sale.Owners with littoral rights enjoyA. unrestricted use of available waters, but they own the land adjacent to the water only up to the average high-water mark.B. the right of disposition.C. unrestricted use of the surface of the earth.D.unrestricted rights to the use of fixtures.

• The answer is - unrestricted use of available waters, but

they own the land adjacent to the water only up to the average high-water mark. Owners of littoral rights enjoy unrestricted use of available waters, but own the land adjacent to the water only as far as the average high-water mark.An important characteristic of personal property is that it isA. small enough to be carried by a person.B. movable.C.alive.D. less than 100 years old.

• The answer is - movable. Personal property is all the

property than can be owned and that does not fit the definition of real property; the most important distinction between real and personal property is that personal property is moveable.The developer added sewer lines and utilities and built two streets. What are these items called?A. Fixtures C.ImprovementsB. Additions D. Permanence of investment

• The answer is - improvements. Permanent attachments

are called improvements.The new owner of a condominium received the right to use a parking space in the multi-unit building. This right is an example ofA. an improvement. C. an appurtenance.B. a fixture. D. a chattel.

• The answer is - an appurtenance. An appurtenance is a

right or privilege associated with the property, although not necessarily a part of it; typical appurtenances include parking spaces in multiunit buildings, easements, water rights, and other improvements.Growing trees, fences, and buildings are all consideredA.chattels. C. fixtures.B. land. D. real estate.

• The answer is - real estate. The definition of real estate

includes fences, buildings, and growing trees. Chattels are personal property. The definition of land would not include fences and buildings.The law of the sea identifies national territorial waters as those extending from a baseline up toA. 12 nautical miles.B. 15 nautical miles.C. 100 nautical miles.D. 200 nautical miles.

• The answer is - 12 nautical miles. The law of the sea

identifies territorial waters as those extending up to 12 nautical miles from a baseline that is the mean low-water line of a coastal country.A buyer particularly liked the ornate brass lighting fixtures in a seller's house and immediately made an offer, which the seller accepted. On moving day, the buyer discovered that the seller had replaced all the ornate brass lighting fixtures with plain chrome ones. Which of these is MOST

likely a correct assumption?A. Seller: "As long as I

replaced the lighting fixture with something of comparable

value, I can take them with me."B. Buyer: "Lighting fixtures

are normally considered to be real property."C. Seller: "The

lighting fixtures were personal property when I bought them

at the store, so they're personal property forever."D. Seller:

"All the things that were in the house when I saw it should belong to me."

• The answer is - buyer. "Lighting fixtures are normally

considered to be real property." The buyer is correct in assuming that lighting fixtures are normally part of real property. If the seller had wanted to remove the fixtures, the seller should have done so before putting the house on the market, or specifically excluded in the listing agreement