1 LAW AND PRACTICE - EXAM

Personal Property Explanation A trade fixture is personal property of the tenant and may be removed by the tenant. A trade fixture is something that is used in the conducting of a business; i.e. a pizza oven in a pizza restaurant.

According to law, a trade fixture is: A fixture Personal property An easement A license

a kitchen sink Explanation Everything but the kitchen sink which is considered real property. Personal property, roughly speaking, is private property that is moveable as opposed to real property or real estate. Personal property may also be called chattels or personalty.

All of the following would be considered chattels except: velvet drapes a portable dishwasher a kitchen sink patio furniture

Possession of the property control of the property disposition of the property All of the Above Explanation Possession, control and disposition of ownership are included in the bundle of rights. The "Bundle of Rights" can best be remembered by the name "C-U-P-E-D". These letters stand for control, use, possess, enjoyment, and dispose.

An owner of real estate possesses certain rights, including: Possession of the property control of the property disposition of the property All of the Above

trade fixtures Explanation The tenant owns trade fixtures. They must be removed before midnight of the last day of the lease or they may become the property of the lessor.

Certain items on the premise that are installed by the tenant and are related to the tenant's business are called: fixtures emblements trade fixtures easements

How they were purchased Explanation Legal tests of a fixture include intention of the parties (did they plan for it to stay or did they plan to take the object usually defined in the contract), method of attachment (is it screwed into the wall like a curtain rod or is it just hanging on a rod like a curtain), its type and adaptability to the real property, and the relationship of the parties which is usually set forth in an agreement or contract.

Legal tests to determine whether a fixture (something which is attached) should stay or can be removed from a property by a Seller include all of the following EXCEPT: Intention of the Parties Method of attachment How they were purchased Existence of an agreement

littoral rights Explanation Both riparian and littoral rights concern water, littoral rights specifically apply to nonmoving bodies of water, like lakes, ponds, and oceans.

The rights of a landowner to use waters of an adjacent lake or ocean are known as: riparian rights zoning rights littoral rights livery of seisin

Riparian Explanation While both riparian and littoral rights have to do with water, remember that riparian rights have to do with FLOWING bodies of water, such as rivers, streams or creeks.

The rights of a landowner to use waters of an adjacent stream or river are known as: Riparian Rights Zoning Rights Littoral Rights Livery of Seisin

Riparian rights Explanation Riparian rights are along a stream, river or creek; littoral rights are abutting a pond, lake, or ocean.

The rights of an owner with property abutting the bank of a stream, river, or creek, is/are called; Littoral rights Riparian rights Eminent domain Dominant tenements

personal property of the tenant Explanation Trade fixtures are the personal property of the tenant and may be removed at any time. If left after the termination of the lease they become the property of the landlord.

Trade fixtures are: a permanent part of a building owned by the owner of the real estate removable with the building owner's permission personal property of the tenant

Condemnation Explanation Condemnation can convert water from agricultural to domestic use.

Water rights may be converted from private agricultural to public domestic use by the process of: Severance Condemnation Suit for partition City Council Resolution

Bill of sale Explanation A bill of sale includes the personal property involved in a sale.

When a property is sold and several removable fixtures are sold, such as refrigerators and radiator covers, upon delivery of the deed, the seller should also deliver a(n): Bill of sale Estoppel certificate Chattel mortgage Satisfaction piece

Drapes Explanation Drapes are personal property as are all other non-attached window coverings. They can be included in the sale of a property if expressly included in the contract to buy and sell for the property. All other items listed in the answers are attached to the property and therefore are considered real property.

Which of the following is NOT real property? Wall-to-wall carpeting Built-in dishwasher Drapes Sump pump

possession of the property control of the property disposition of the property all of the above Explanation Possession, control and disposition of ownership are included in the bundle of rights. The "Bundle of Rights" can best be remembered by the name "C-U-P-E-D". These letters stand for control, use, possess, enjoyment, and dispose.

An owner of real estate possesses certain rights, including: possession of the property control of the property disposition of the property all of the above

the earth's surface underlying minerals underground water all of the above Explanation Real estate is land from the earths surface to the center of the earth and up into space, plus any natural attachments (example: trees, oil, minerals) or permanent man-made improvements (example: house, factory, fence, sewer) that are attached.

From the legal point of view, real estate includes: the earth's surface underlying minerals underground water all of the above

how they were purchased Explanation Legal tests of a fixture include intention of the parties (did they plan for it to stay or did they plan to take the object usually defined in the contract), method of attachment (is it screwed into the wall like a curtain rod or is it just hanging on a rod like a curtain), its type and adaptability to the real property, and the relationship of the parties which is usually set forth in an agreement or contract.

Legal tests to determine whether a fixture (something which is attached) should stay or can be removed from a property by a Seller include all of the following EXCEPT: intention of the parties method of attachment how they were purchased existence of an agreement

Personal property Explanation Personal property or chattels is something that belongs to a PERSON, and that PERSON could take them when moving.

Movable objects, which are not considered real estate, are known as: Real property Personal property Fixtures Emblements

mobility Explanation Personal property is not attached to the land or the improvements and it usually is movable. Even though it may be personal property, the contract can include it in the sale of the real estate and then, by means of the contract it does become real estate.

Personal property may be distinguished from real property by its: great variety mobility overhead price multiplicity of uses

severance Explanation Severing property from the real estate, for example extracting minerals from the earth creates personalty or personal property. Another example would be cutting down a tree and turning it into firewood. As a tree it was real property but as firewood it would be personal property.

Real property may become personal property by: severance purchase severance and purchase annexation

all of the above Explanation Streets, sidewalks, sewers, and drainage systems all are improvements to the land and increase its value.

The word improvement refers to: streets sewage and drainage systems sidewalks all of the above

all of the above Explanation Scarcity (supply), permanence of investment, improvements, and area preference are all economic characteristics of real property.

Three of the four economic characteristics of real property are: scarcity permanence of investment improvements all of the above

Area Preference Explanation Area preference is the most important consideration when selecting a property. There is a saying in real estate: "the three most important things in real estate are, location, location and location."

Tina Thomas has looked at a house that fits her needs, except that it is located in a busy downtown area where she does not want to live. Her concern about location is called: physical characteristic area preference permanence of investment immobility

area preference Explanation Area preference is the most important consideration when selecting a property. There is a saying in real estate: "the three most important things in real estate are, location, location and location."

Tina Thomas has looked at a house that fits her needs, except that it is located in a busy downtown area where she does not want to live. Her concern about location is called: a physical characteristic area preference permanence of investment immobility

Drapes Explanation Drapes are personal property as are all other non-attached window coverings. They can be included in the sale of a property if expressly included in the contract to buy and sell for the property. All other items listed in the answers are attached to the property and therefore are considered real property.

Which of the following is NOT real property? Wall-to-wall carpeting Built-in dishwasher Drapes Sump pump

they are real property rights that may be sold separately from the land with their own deed Explanation Water rights are real property that may be sold separately and transferred by deed. They could be transferred on a water rights deed or a general warranty deed. They can be included in the sale of the property if expressly stated in the contract and both parties agree.

Which of the following is true with regard to water rights? they are personal property rights that may be sold and transferred by bill of sale they are real property rights that may be sold separately from the land with their own deed they are real property rights that automatically transfer with the land they are personal property rights permanently affixed to the land