Ch. - 2 Real Property

What are the 3 unique physical characteristics of land

-immobility -indestructibility -non-homogeneous

What are the 5 legal rights of property

1. right of possession 2. right of disposition 3. right of control 4. right of exclusion 5. right of enjoyment

Which of the following is an example of a fixture? -A countertop toaster oven -A built-in microwave -A refrigerator -Non-personal pictures

A built-in microwave

Which of the following belong to the trade fixtures? -A garbage compactor -An air conditioner -A printer's printing press -A septic tank

A printer's printing press

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. A tenant may detach or remove before, or upon, surrender of the leased premises.

Which law prescribes design and accessibility standards?

Americans with Disabilities Act

What is the difference between real property and personal property?

An item may be real or personal property depending on the "attachment" criterion and other circumstances. property becomes real property when it is "attached" to the land or structure. ex: a swimming pool pump on a shelf in your garage is personal property. When you install the pump into the pool, it becomes real property.

Personal Property

Anything which is not real estate and the rights that come with owning the personal property item.

Why are Manufactured Homes considered personal property?

Because they are movable

What term describes the collection of rights that a real property owner holds?

Bundle of rights

True or False The federal government has the power to levy real estate taxes.

False. The federal government does NOT levy real estate taxes.

Which law prohibits discrimination in housing based on race, religion, color, or national origin?

Federal Fair Housing Act of 1968

right to exclude

Gives the property owner the legal right to keep others off the property and to prosecute trespassers

Who regulates the following aspects of real property interests? -The bundle of rights: possession, disposition, control, exclusion and enjoyment -Legal descriptions -Financing -Insurance -Inheritance -Taxation

Government (federal, state, county, & local)

What are the three physical characteristics of land?

Immobility Indestructibility Non-homogeneous

right to transfer interests

Includes the right to sell, bequeath, lease, donate, or assign ownership interests

Which of the following best describes personal property? -Trade Fixtures -Those items that comply with the Non-Realty Items Disclosure Act -Items that are more than 5% of the total value of the land -Items that are not real property

Items that are not real property

Property owner Sally sold off subsurface rights to her property. What term is used to describe Sally's action?

Laterally Severed

Seller James wants to be able to remove a custom bar front upon the sale of his property. What is the best suggestion you can give James to make sure his request is met?

List the bar front in the contract as personal property.

What rights concern lakeside properties?

Littoral rights

littoral rights

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

Intention

One's original intention can override the test of movability in determining whether an item is a fixture or not. If someone attached an item to real property, yet intended to remove it after a period of time, the article may be deemed personal property. If a person intended an article to be a fixture, even though the item is easily removable, the article may be deemed a fixture

What is it called when a tenant enjoys the right to possess and use an owner's building over a period of time?

Ordinary lease

What is a trade fixture?

Personal property item temporarily attached to real estate in order to conduct business

trade fixtures

Personal property items temporarily attached to real estate in order to conduct business; these items are designed to be removed at some point.

What are the characteristics of tangible property?

Physical, visible, and material

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.

Emblements

Plants or crops requiring human intervention for planting and harvesting. Emblements are personal property.

What do government entities regulate?

Possession, usage, transfer, encumbering and exclusion, legal descriptions, financing, insurance, inheritance, taxation

Fair housing laws are designed to do what in regards to discrimination?

Prohibit discrimination

Intangible Property

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

Tangible Property

Property that is physical, visible, and material.

What is the definition of real property?

Real estate and the bundle of rights associated with owning real estate

Real Property

Real estate and the bundle of rights associated with owning real estate.

Who does not have to have a special license to sell a manufactured home?

Real estate broker

What do we call the rights associated with owning a parcel of real estate?

Real property rights

fixtures

Real property that people convert from personal property by attaching it to real estate.

What is the foremost property right?

Right of possession

What is the right that allows a property owner to mortgage a property as collateral for debt?

Right to encumber

Owner Jake sued a trespasser that entered his property. What right was Jake exercising?

Right to exclude

riparian rights

Riparian rights concern properties abutting moving water such as streams and rivers.

What are the 2 conversion processes?

Severance & Affixing

Which of the following would be considered an "improvement?" -Truck -Shed -River -Mountain

Shed

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

State government

Who is the primary regulatory entity of the real estate business?

State governments

What right applies to extracting mineral and gas deposits and subsurface water from the water table?

Subsurface rights

Into what three areas of rights can land be divided?

Surface rights, subsurface rights, and air rights

What will happen if someone attached an item to real property, yet intended to remove it after a period of time?

The article may be deemed personal property

What is not included in the "real property" concept?

The bundle of rights associated with owning the chattels estate

Who does not levy real estate taxes?

The federal government

property

The item that someone owns, plus the item's set of rights that the owner enjoys.

What does the right to exclude give the owner of the property?

The legal right to keep others off the property and to prosecute trespassers

right to encumber

The right to mortgage the property as collateral for debt

What right allows the property owner to sell, bequeath, lease, donate, or assign ownership interests?

The right to transfer interests

What right does include such activities as mining, cultivating, landscaping, razing, and building?

The right to use a property

Air rights apply to what space?

The space above the surface boundaries of the parcel, which imaginary vertical lines that extend to infinity define

Right to Control

The titleholder can use the property in any way that is not illegal.

Which is a common example of an ordinary lease?

The transfer of a portion of one's bundle of rights

Surface Rights

These apply to the real estate that is within the surface boundaries of the parcel. This includes the ground, all natural things affixed to the ground, and all improvements. Surface rights also include water rights.

Right of Exclusion

This allows the titleholder to limit who may enter the property. This one has few real limits. Easements may be in place permitting access to utility lines may override this right. A warrant authorizing a search of the property trumps the right of exclusion

Right of Enjoyment

This asserts the titleholder's right to participate in any activities they find pleasurable while on the property. This assumes, once again, that those activities are lawful.

real estate

This can include land and all man-made structures that are "permanently" attached to the land.

Right of Disposition

This includes the right to sell, bequeath, lease, donate, or assign ownership interests

land

This includes the surface area of the earth and everything beneath the surface of the earth extending downward to its center. It also includes all natural things permanently attached to the earth. Finally, it includes the air above the surface of the earth extending outward to infinity.

Right of Possession

This is the right to use the property in certain ways. Those ways may include mining, cultivating, landscaping, razing, and building on the property. This right is subject to the limitations of local zoning and the legality of the use

When may the trade fixtures become the property of the landlord?

Through accession

What is the function of the state governments?

To exert regional influence in the usage and environmental control of real estate within the state.

True or False The county & local government has the power to levy real estate taxes.

True County and local governments, along with school districts and other local jurisdictions, have the power to levy real estate taxes.

True or False The state government has the power to levy real estate taxes.

True States have the power to levy real estate taxes. However, they generally pass this power to local government.

What is the primary criterion for distinguishing real from personal property?

Whether the item is permanently attached to the land, or to structures attached to the land

What is affixing?

act of converting personal property to real property by attaching it to the real estate ex: assembling a pile of bricks into a bbq pit, constructing a boat dock from wood planks

Air rights apply to the space above the surface boundaries of the parcel:

as delineated by imaginary vertical lines extended to infinity.

What is it called when you convert personal property to real property by affixing it to the real estate?

attachment

Items of personal property are also called:

chattels or personalty.

A personal property item that has been converted to real property by attachment to real estate is called a(n):

fixture.

Air rights are usually _________.

granted by charging a fee

What is case law?

it consists of decisions based on judicial precedent

What is common law?

it is the collective body of law deriving from custom and generally accepted practice in society.

The legal concept of real estate encompasses:

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

Real estate = _______ + _______

man made structure + land

define improvements

man made structures that are "permanently attached" to the land

Improvements

man-made structures attached to the land

Explain what makes land non-homogeneous.

no two parcels of land are exactly the same. Two adjacent parcels may be very similar and have the same economic value. However, they are different because each parcel has a unique location.

Are manufactured homes considered real property or personal property? Why? What's the exception?

personal property because they are movable in Texas a manufactured home can be considered real estate through a "statement of ownership and location"

parcel/tract

portion of land delineated by boundaries

What is intangible property? examples?

property that is abstract It does not have any physical existence in itself, other than as evidence of one's ownership interest. ex: stocks, copyrights, bonds, trademarks, patents, franchises, listing agreements, etc

What is tangible property? examples?

property that is physical, visible, and material ex: boats, jewelry, computers, appliances, etc

What are the 2 classifications of property?

real property and personal property

What right allows the property owner to keep others off the property and to prosecute trespassers?

right to exclude

Which of these is the primary regulatory entity in the business of real estate? Local government State government Federal government Professional Real Estate Associations

state government

In Texas, a manufactured home may be considered real estate by converting the personal property to real property through a:

statement of ownership and location.

What is severance?

the process by which an item of real property becomes personal property. ex: cutting down a tree, detaching a door, removing antenna from roof

Renter Mary opened an ice cream shop and moved in three reach-in freezer boxes. These boxes would be classified as:

trade fixture

Renter Mike installed a dust collector in his woodworking business. The dust collector would be classified as:

trade fixture.

The primary criterion for distinguishing real from personal property is:

whether the item is permanently attached to the land.