Real Estate

Mobile home, rather than manufactured housing, is the term used for a factory-built home that was built before

1976. The term mobile home was phased out with the passage of The National Manufactured Housing Construction and Safety Standards Act of 1976 when manufactured homes became federally regulated.

A farmer 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?

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 economic characteristics of real estate are scarcity, improvements, permanence of investment, and uniqueness.

False. Economic characteristics of land include scarcity, improvements, permanence of investment, and area preference.

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.

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.

The economic characteristic of permanence of investment refers to the concept that the total supply of land is limited.

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.

Immobility, indestructibility, and scarcity are physical characteristics of real property.

False. Physical characteristics of land include immobility, indestructibility, and uniqueness

A property's air rights extend upward into outer space.

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.

False. The terms land, real estate, and real property are not interchangeable. They refer to different aspects of ownership rights.

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.

False. The transfer of the surface does not necessarily include the rights to the subsurface rights, which are the natural resources that lie beneath the surface. An owner may transfer surface rights without transferring subsurface rights.

Trees, perennial shrubbery, and grasses that do not require annual cultivation are considered personal property.

False. Trees, perennial shrubbery, and grasses that do not require annual cultivation are considered real estate.

The developer added sewer lines and utilities and built two streets. What are these items called?

Improvements

A man particularly liked the ornate brass lighting fixtures in a woman's house and immediately made an offer, which the woman accepted. On moving day, the man discovered that the woman had replaced all the ornate brass lighting fixtures with plain steel ones. Which of these is MOST likely a correct assumption?

Man: "Lighting fixtures are normally considered to be real property." The man is correct in assuming that lighting fixtures are normally part of the real property. If the woman had wanted to remove the fixtures, she should have done so before she put the house on the market, or she should have written her intention to remove them into the agreement of sale.

Which of these is an example of an economic characteristic of land?

Scarcity. Immobility, indestructibility, and uniqueness are physical characteristics, while scarcity is an economic characteristic.

A trade fixture is an article owned by a tenant and attached to a rented space or building used in conducting a business.

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.

The image of a bundle of sticks is the traditional illustration of the set of legal rights of ownership.

True. Because the rights of ownership (like sticks in a bundle) can be separated and individually transferred, the sticks become symbolic of those rights

Trade fixtures are typically excluded from a mortgage.

True. Because trade fixtures are considered personal property, they are not included in the sale, mortgage, or real estate, except by special agreement.

When determining if an item is a fixture, decide whether the item is actually being used as real or personal property.

True. During the course of time, the same materials may be both real and personal property, depending on their use and location. For example, a refrigerator is usually considered personal property but becomes real property when installed so as to become part of the kitchen cabinetry.

The process by which personal property becomes real property is called annexation.

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).

The term real property includes land, rights, and real estate.

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.

One of the rights of real property ownership is the right of enjoyment, or the right to use the property in any legal way.

True. Traditionally, ownership rights of real property include the right of possession, control, enjoyment, exclusion, and disposition.

A new owner received the right to use a parking space in the multi-unit building where she purchased a condominium. This right is an example of

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.

A right or privilege tied to real property, although not necessarily part of the property, is called a(n)

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.

All of these are included in the bundle of rights EXCEPT

expansion. The bundle of rights includes possession, control, exclusion, enjoyment, and disposition. There is no right to expansion, except by acquiring another parcel.

After suffering through a tornado and then flooding from the river, the buildings were gone. The land was still there. This is an example of

indestructibility. Land cannot be destroyed, although the improvements might be removed, as they are in this case.

The most important economic characteristic of land is

location. Location is sometimes called area preference or situs.

An important characteristic of personal property is that it 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.

Another word for uniqueness is

nonhomogeneity. Uniqueness, or nonhomogeneity, indicates that no two parcels of land are alike.

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.

A woman planted a rose bush on her property and plans to dig it up and take it with her when her house is sold. The sales contract explicitly excludes the rose bush from the sale. This provision is necessary because the rose bush is considered to be

real estate. Because the rose bush is a perennial shrub, it is considered real estate.

Growing trees, fences, and buildings are all considered

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.

Methods of annexation, adaptation, and agreement are the legal tests for determining whether an item 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.

Land, mineral, and air rights in the land are included in the definition of

real property. Subsurface rights and improvements are included in the definition of real estate. Real property also includes rights and privileges.

A seller asked a real estate professional to draw up several documents relating to seller financing. Under these circumstances, the real estate professional should

refer the seller to an attorney. Real estate professionals should be careful not to practice law unless they are, in fact, licensed attorneys.

A tenant farmer built a chicken coop and a tool shed. These buildings belong to the

tenant. 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.

Owners with littoral rights enjoy

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 up to the average high-water mark.