TX Principles of Real Estate I Chapter 2

What is the primary thrust of federal involvement in real estate law? A. Taxation B. Licensing C. Broad regulation of usage D. Zoning

C

Which of the following is included in the bundle of rights inherent in ownership? A. To inherit B. To tax C. To transfer D. To vote

C

Which of the following is the best def of real estate? A. land and personal use B. unimproved land C. land and everything permanently attached to it D. an ownership interest in the land and improvements

C

conversion

the act of transforming real personal property through severance, or personal to real property through affixing

What is an emblement?

A plant or crop that is considered personal property

The primary distinction between the legal concepts of real estate and real property is that A. real property includes ownership of a bundle of rights B. real property includes improvements C. real property is physical, not abstract D. real estate can be owned

A

The right to use real property is limited by A. the right of others to use and enjoy their property B. the police C. taxation and subordination D. Title 12 of the U.S. Civil Code

A

Under the doctrine of littoral rights, an owner claims ownership of all of the land underlying a lake where there are three other abutting property owners. Which of the following is true? A. The owner's claim is invalid, b/c the state owns the underlying land B. The owner's claim is invalid, b/c the underlying land is shared equally with the other owners C. The owner's claim is invalid, b/c he may only own underlying land to the middle of the lake D. The owners' claim is valid, b/c the lake is navigable

A

Which of the following is considered real property? A. A tree growing on a parcel of land B. A tree that has been cut down and is lying on a parcel of land C. A tractor used to mow grass on a parcel of land D. A prefabricated shed not yet assembled on a parcel of land

A

Which of the following is included in the legal concept of land? A. The surface of the earth and all natural things permanently attached to the earth B. Only the surface of the earth that is delineated by boundaries C. The surface of the earth except for lakes and streams D. Everything above, on, and below the surface of the earth

A

Severance

A conversion of real property to personal property through detachment of the item from the land. Such as cutting down a tree or detaching a door from a shed

What is the definition of a fixture?

A personal property item that has been converted to real property by attachment to real estate

How is a trade fixture different from a fixture?

A trade fixture has been temporarily affixed to a landlord's real property in order to conduct business and may be detached and removed before, or upon surrender, of the leased premises.

An item can be converted from real to personal property and vice versa by means of which processes?

Affixing and severance

A grocer temporarily installs special fruit and vegetable coolers in a leased grocery store in order to prevent spoilage. The coolers would be considered which of the following? A. Trade fixtures that are real property B. Trade fixtures that are personal property C. Permanent fixtures that are real property D. Permanent fixtures that are personal property

B

The overriding test of whether an item is a fixture or personal property is A. how long it has been attached to the real property B. its definition has one or the other in a sale or lease contract C. how essential is it to the functioning of the property D. how it was treated in previous transactions

B

What are three unique physical characteristics of land? A. Fixed, unchangeable, homogenous B. immobile, indestructible, heterogeneous C. three-dimensional, buildable, marketable D. natural, measurable, inorganic

B

What part of a non-navigable waterway does the owner of an abutting property own? A. To the low-water mark B. To the middle of the waterway C. To the high-water makr D. None

B

How are air rights delineated?

By imaginary vertical lines to extend to infinity

Surface rights, air rights and subsurface rights are A. inviolable B. unrelated C. separable D. not transferrable

C

What is the "Doctrine of Prior Appropriation?" A. A pre-emptive zoning ordinance B. The right of government to confiscate land and improvements C. A doctrine that gives the state control of water use and the water supply D. A real estate tax applied to owners of water rights

C

Which level of government controls zoning laws?

County & local

The primary distinction between the legal concepts of land and real estate is that A. real estate includes air above the surface and minerals below the surface B. real estate is indestructible C. land has no defined boundaries D. land does not include man-mad structures

D

What guarantees the right of private ownership of real estate in the United States? A. common law B. local statutes C. the napoleonic code D. the constitution

D

Which of the following is an example of intangible property? A. Real estate B. Personal property C. Artwork D. Stock

D

Which of the following terms refers to the rights of a property that abuts a stream or river? A. allodial B. Alluvial C. Littoral D. Riparian

D

What does the legal concept of real estate encompass?

Land & all man-made structures that are "permanently" attached to the land

Growing plants may be either real or personal property. How are they differentiated?

Plants and crops that grow naturally, without requiring anyone's labor or machinery, are considered real property. Plants and crops requiring human intervention and labor are called emblements which, despite their attachment to land, are considered personal property

What are two classifications of property?

Real property and personal property

What are the 4 important rights associated with owning a parcel of real estate?

Right to use Right to transfer Right to encumber Right to exclude

Which government entity is the primary regulatory entity of the real estate business?

State Government

Land can be laterally divided into what classifications of rights?

Surface rights Subsurface rights Air rights

What do water rights concern?

The rights to own and use water found in lakes, rivers, and the ocean

What does the legal concept of land encompass?

The surface area of the earth Everything beneath the surface of the earth extending downward to its center. All natural things permanently attached to the earth The air above the surface of the earth extending outward to infinity.

real property rights

These consist of the bundle of rights associated with owning a parcel of real estate. Foremost of these rights is the right of possession.

littoral rights

These rights concern properties abutting bodies of water that are not moving, such as lakes and seas.

Riparian Rights

These rights concern properties abutting moving water such as streams and rivers. If a property abuts a stream or river, the owner's riparian rights are determined by wether the water is navigable or not.

Intangible property

abstract, having no physical existence in itself, other than as evidence of one's ownership interest.

The major sources of real estate law are legislation at federal, state and local levels and A. court decisions B. professional real estate associations C. real estate commissions D. local practices

court decisions

What are three physical characteristics of land?

immobility, indestructibility, and heterogeneity

Trade Fixtures

personal property items temporarily attached to real estate in order to conduct business; to be removed at some point

Tangible property

physical, visible, and material

Emblements

plants or crops considered personal property since human intervention is necessary for planting, harvesting

Fixtures

real property converted from personal property by attachment to real estate