Unit 2: Real Property and the Law Flashcards

Unit 2: Real Property and the Law Flashcards

The owner of a manufactured home has elected to have it classified as real property. Which of the following would NOT support the home's classification as real property?the owner intends to move it every six months. If the property is being moved continually, it cannot be classified as real property. The home would be classified as personal property.The development of a parcel of land can have a significant impact on its value, as well as the value of nearby parcels, because of the economic characteristic that considers improvements to the land. An improvement on a parcel of land can affect the land's value and use, as well as that of neighboring tracts and whole communities.Parking spaces in multiunit buildings, water rights, and similar things of value that convey with property are classified as appurtenances. Appurtenances are rights or privileges associated with the property, although not necessarily part of the property.Real estate brokers and sales associates may NOT act as attorneys unless they are also licensed attorneys representing clients in that capacity.A property owner wants to use water from a river that runs through the property to irrigate a potato field. To do so, the owner is required by state law to submit an application to the Department of Water Resources describing in detail the plan for beneficial use of the water. If the department approves the owner's application, it will issue a permit allowing a limited amount of river water to be diverted onto the property. Based on these facts, it can be assumed that this property owner's state relies on which rule of law?doctrine of prior appropriation. Many states whose water is in relatively short supply have passed statutes authorizing a system of prior appropriation in which owners downstream do not necessarily have to wait for "what's left" after those upstream have drawn their fill. Priority-who is allowed to appropriate water first-is established, instead, by the date of approved filing and continued conformity with any rules and limitations on use imposed by the jurisdiction.An important distinction between real and personal property is that real property is transferred by a deed. An important distinction between real and personal property is that real property is transferred by a deed and personal property is transferred by a bill of sale.All of the following are economic characteristics of land

EXCEPT

uniqueness. Uniqueness is a physical characteristic of real estate, along with immobility and indestructibility.A landowner sells his property but retains the rights to any oil and gas found beneath the property. These rights are called subsurface rights. They are the rights to natural resources below the earth's surface. An owner may transfer surface rights without transferring subsurface rights.A right or privilege tied to real property, although not necessarily part of the property, is called 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 purpose of real estate license laws is to protect the public in real estate transactions from fraud, dishonesty, and incompetence. The purpose of real estate license laws is to protect the public from fraud, dishonesty, and incompetence in real estate transactions.To determine whether an item is a fixture, the MOST important test is whether 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.The considerable amount of undeveloped land available on the earth's surface contributes to land's economic

characteristic of scarcity. Although a considerable amount of the earth's surface is undeveloped, only a finite amount of it is

available for use in any given location, thus contributing to its scarcity.A property owner's land is located along the banks of a river. This owner's water rights are called riparian rights. Riparian rights are common law rights granted owners of land along the course of a river.The most important economic characteristic of land islocation. Location is sometimes called area preference or situs.A purchase contract contains several personal property items and fixtures that will be transferred upon sale of the property. Which of the following is TRUE?all personal property must be listed in a bill of sale to convey to the buyer. Fixtures are appurtenant, attached to the property, and automatically conveyed with the deed without being listed. Personal property must be listed in the bill of sale in order to be included in the sale.Method of annexation, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is a fixture or personal property. The overall test in determining whether an item is a fixture (real property) is the intention of the person installing it, how uniquely adapted the item is to the property in which it is installed, how item was installed and the damage its removal would cause, the relationship of the parties, and what the parties have agreed to.An important characteristic of personal property is that it ismovable. 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 truckload of lumber that a homeowner purchased has been left in the driveway for use in building a porch. The lumber is considered personal property. The lumber will become realty if and when it is later affixed in the course of construction. Until then, it is personal property-a chattel-of the landowner.Which of the following is considered personal property?patio furniture. Personal property, such as patio furniture, is movable. A fireplace, bathtubs, and awnings are all attached to the property and considered real property.The specific areas of law that are important to the real estate professional do NOT include maritime law. The specific areas of law that are important to the real estate professional include the law of contracts, the general property law, and the law of agency.Real estate professionals can't be experts in all areas of real estate law, but they should know and understand some basic principles. A real estate professional can't be an expert in all areas of real estate law; however, real estate professionals should know and understand some basic principles.The real estate professional should be familiar with the state real estate licensing law and know enough about federal, state, and local laws relevant to real estate practice to recommend that clients and customers seek help from an attorney or other appropriate professional when necessary. Real estate professionals must be familiar with the requirements of the licensing law and should know the basics of other areas of the law, but they should never give legal advice and should always encourage clients and customers to seek additional professional assistance when warranted.

Real estate generally includes all the following EXCEPTannual crops. Common law treats annual crops, those that must be planted each year, as the personal property of the person who planted and tended them. When a farm is sold, trees, air rights, and mineral rights may all convey, but the annual crops (fructus industriales or emblements)-lacking effective contractual agreement to the contrary-are still the personal property of the tenant farmer or other person who planted them. The farmer may return and harvest them in season.An item of real property can become personal property byseverance. For example, a tree is classified as real property until the owner cuts it down, severing it from the property.Land development costs for capital and labor contribute to the economic characteristic of permanence of investment. The capital and labor used to make improvements to real estate represent a large fixed investment that is considered permanent, despite the fact that buildings can disintegrate or be demolished.The developer added sewer lines and utilities and built two streets. What are these items called?improvements. Permanent attachments are called improvements.Air rights, surface rights, and subsurface rights of real estate ownership can be transferred separately, unless prohibited by law. Air rights and subsurface rights can be a very valuable part of a parcel of real estate, and may be worth much more than the right to use the surface of the land.A property owner's bundle of legal rights entitles the owner to do all of the following EXCEPT exclude utility meter readers. The right of exclusion generally allows an owner to exclude someone else from entering the property, but this does not include the right to exclude the utility meter reader.Which of the following is personal property? emblements. Annually cultivated crops such as fruit, vegetables, and grain are known as emblements and are generally considered personal property. Vineyards and orchards generally yield perennial crops and are considered real property.The owners of littoral rights enjoyunrestricted use of available waters. Littoral rights belong to owners of land that borders commercially navigable lakes, seas, and oceans, and the owners have unrestricted use of the available waters.A sales contract explicitly excludes some rose bushes from the sale. This provision is necessary because the rose bushes are ordinarily considered to be real estate. Because the rose bushes are perennial shrubs, they are considered real estate.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 landowner this authority?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.The need for regulation of the activities of real estate brokers and salespeople has long been recognized because their work involves other people's real estate and money.The need for regulation of the activities of real estate brokers and salespeople has long been recognized