Unit 2 - Unit Review Real Property and the Law Flashcards

Unit 2 - Unit Review Real Property and the Law Flashcards The term real property includes land, rights of ownership, and real estate.The answer is true. The term real property is the broadest of all; it includes both land and real estate, as well as the interests, benefits, and rights that are automatically included in the ownership of land and real estate.The economic characteristics of real estate are scarcity, improvements, permanence of investment, and uniqueness.The answer is false. Economic characteristics of land include scarcity, improvements, permanence of investment, and area preference.Trade fixtures are typically excluded from a mortgage.The answer is true. Because trade fixtures are considered personal property, they are not included in the sale or mortgage of real estate, except by special agreement.Owners with littoral rights enjoyA) unrestricted use of the surface of the earth.B) the right of disposition.C) unrestricted use of available waters, but they own the land adjacent to the water only up to the average high-water mark.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.One of the rights of real property ownership is the right of enjoyment, or the right to use the property in any legal way.The answer is true. Traditionally, ownership rights of real property include the right of possession, control, enjoyment, exclusion, and disposition.The economic characteristic of permanence of investment refers to the concept that the total supply of land is limited.The answer is false. Permanence of investment refers to the concept that the return on investment in real estate tends to be long-term and relatively stable. Scarcity refers to the concept that the total supply of land is limited.Which of these is an example of an economic characteristic of land?A) ImmobilityB) ScarcityC) IndestructibilityD) Uniqueness The answer is scarcity. Immobility, indestructibility, and uniqueness are physical characteristics, while scarcity is an economic characteristic.The process by which personal property becomes real property is called annexation.The answer is true. It is possible to change personal property into real property through the process called annexation, such as mixing cement, stones, sand, and water (personal property) to create a sidewalk that is part of the real estate.Immobility, indestructibility, and scarcity are physical characteristics of real property.The answer is false. Physical characteristics of land include immobility, indestructibility, and uniqueness.The image of a bundle of sticks is the traditional illustration of the set of legal rights of ownership.The answer is true. Because the rights of ownership (like sticks in a bundle) can be separated and individually transferred, the sticks are symbolic of those rights.Trees, perennial shrubbery, and grasses that do not require annual cultivation are considered personal property.The answer is false. Trees, perennial shrubbery, and grasses that do not require annual cultivation are considered real estate.The transfer of the right to use the surface of the earth always includes the right to the natural resources that lie beneath the surface of the earth.The answer is false. The transfer of the surface does not necessarily include subsurface rights, which are the natural resources that lie beneath the surface. An owner may

transfer surface rights without transferring subsurface rights.

Land rights, mineral rights, and air rights are included in the definition ofA) improvements.B) attachments.C) littoral rights.D) real estate.The answer is real estate. Land, including subsurface and air rights, and improvements are included in the definition of real estate.Another word for uniqueness isA) scarcity.B) immobility.C) nonhomogeneity.D) fructus industriales.The answer is nonhomogeneity. Uniqueness, or nonhomogeneity, indicates that no two parcels of land are alike.A property's air rights extend upward into outer space.The answer is false. Property air rights began to be limited when air travel became common. Now, light and solar rights may limit air rights in certain areas.The terms land, real estate, and real property are interchangeable and refer to the same thing.The answer is false. Even though the terms land, real estate, and real property are used as if they are interchangeable, they refer to different aspects of ownership rights.Real property is defined as the earth's surface extending downward to the center of the earth and upward to infinity, including permanent natural objects, such as trees and water.The answer is false. Land is defined as the earth's surface extending downward to the center of the earth and upward to infinity, including permanent natural objects, such as trees and water. Real property is defined as the interests, benefits, and rights that are considered part of the ownership of land and real estate.A trade fixture is an article owned by a tenant and attached to a rented space or building used in conducting a business.The answer is true. An article owned by a tenant and attached to a rented space and used in conducting a business is a trade fixture; it may be removed prior to the termination of the lease.All of these are included in the bundle of rights EXCEPTA) control.B) possession.C) exclusion.D) expansion.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.When determining if an item is a fixture, you should consider the method of attachment to the property.TrueThe answer is true. The same item may be treated as a fixture, and thus part of the real estate, depending on how it is attached. A window air conditioner that is easily removable is personal property, but the property's owner may still decide to include it in the property's sale.