Real Estate Unit 2 Flashcards

Real Estate Unit 2 Flashcards Land, mineral, and air rights in the land are included in the definition ofa. attachments.b. real property.c. subsurface rights.d. improvements.

• Subsurface rights and improvements are included in the

definition of real estate. Real property also includes rights and privileges.A tenant farmer built a chicken coop and a tool shed.These buildings belong to thea. tenant.b. owner of real estate.c. owner, but the owner must reimburse the tenant.d. tenant, but the tenant must pay additional rent for them.

• The coop and tool shed would be considered trade

fixtures, and the tenant has the right to remove them up to the end of the lease.After suffering through a tornado and then flooding from the river, the buildings were gone. The land was still there. This is an example ofa. uniqueness.b. scarcity.c. location.d.indestructibility.

• Land cannot be destroyed, although the improvements

might be removed, as they are in this case.To determine whether an item is a fixture, the MOST important test is whether thea. effort needed to remove the item is significant.b. item must be dismantled for removal.c.value of the item is high.d. 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.The Law of the Sea identifies a country'sa. territorial waters.b. inland lakes.c. navigable rivers.d. water table.

• The United Nations Convention on the Law of the Sea

identifies a country's territorial waters as those extending up to 12 nautical miles from a baseline that is the mean low-water line of the country's coastline.A farmer has posted a number of "No Trespassing" and "No Hunting" signs on the property. Which "stick" in the bundle of rights gives the farmer this authority?a.Exclusionb. Enjoymentc. Controld. Disposition

• 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 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.b. a fixture.c. an appurtenance.d. a chattel.

• 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.All of these are included in the bundle of rights EXCEPTa.possession.b. control.c. exclusion.d. expansion.

• The bundle of rights includes possession, control,

exclusion, enjoyment, and disposition. There is no right to expansion, except by acquiring another parcel.A right or privilege tied to real property, although not necessarily part of the property, is called a(n)a.emblement.b. trade fixture.c. appurtenance.d. deed.

• An appurtenance is a right or privilege association with a

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.Owners with littoral rights enjoya. unrestricted use of available waters, but they own the land adjacent to the water only as far as 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

• 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.

A buyer particularly liked the ornate brass lighting fixtures in a 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 steel ones. Which of these is MOST likely a correct

assumption?a. Seller: "As long as I replaced them 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: "The lighting

fixtures belong to me because I installed them."

• The buyer is correct in assuming that lighting fixtures are

normally part of the 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 the seller should have written the intention to remove them into the agreement of sale.Which of these is an example of an economic characteristic of land?a. Immobilityb. Indestructibilityc. Uniquenessd.Scarcity

• Immobility, indestructibility, and uniqueness are physical

characteristics, while scarcity is an economic characteristic.Method of annexation, adaptation, 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.

• Whether an item is a fixture or personal property may be

determined by method of annexation, adaptation to real estate, and agreement of the parties.Another word for uniqueness isa. scarcity.b.nonhomogeneity.c. fructus industrials.d. immobility.

• Uniqueness, or nonhomogeneity, indicates that no two

parcels of land are alike.The developer added sewer lines and utilities and built two streets. What are these items called?a. Fixturesb.Additionsc. Improvementsd. Permanence of investment

• Human-made permanent attachments are called

improvements.The most important economic characteristic of land isa.permanence.b. location.c. uniqueness.d. possession.

• Location is sometimes called area preference or situs.

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.

• 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.A seller asked a real estate professional to draw up several documents relating to seller 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.

• A real estate professional should be careful not to

practice law unless the real estate professional is, in fact, a licensed attorney and is hired to act in that capacity.Growing trees, fences, and buildings are all considereda.chattels.b. land.c. fixtures.d. 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.A homeowner planted a rose bush on the property and plans to remove it when the house is sold. The sales contract explicitly excludes the rose bush from the sale.This provision is necessary because the rose bush ordinarily is considered to bea. a trade fixture.b. personal property.c. an emblement.d. real estate.

• Because the rose bush is a perennial shrub, it is

considered real estate