Real State CH 1 AND 2

fixture provision

. To avoid confusion about which items are intended to be included in the sale, fixtures should be clarified when a property is listed and the sales agreement is negotiated

Legal tests of a fixture: (IRMA is mnemonic)

1 Intention of the annexor (most important factor) (2) Relationship of the annexor as well as the existence of an agreement (3) Method of annexation (4) Adaptation to real estate

Which of the following is generally considered real property? Emblements Annual crops A shrub planted in a decorative pot A perennial shrub planted in t he backyard

A perennial shrub planted in t he backyard

Which of the following statements about the North Carolina Timeshare Act are FALSE? Use of a two-bedroom unit for one-week every other year for a ten-year period would meet the definition of a timeshare. A timeshare developer can be fined by the North Carolina Real Estate Commission for violations of the Act. A purchaser of a new timeshare ownership must be given a 10-day rescission period. An active North Carolina real estate licensee is required to sell timeshares to the public.

A purchaser of a new timeshare ownership must be given a 10-day rescission period.

Littoral right

A right of a property owner to use and enjoy lake, bay or sea water adjacent to their property (1) In North Carolina, adjacent landowners have unrestricted use of the navigable waters but only own up to the average high water mark. (2) The land between the high and low tide marks (the foreshore) is owned by the state of North Carolina

Zoning ordinances generally regulate such things as the height of buildings. placement of buildings on property. bulk and density of buildings. all of the above.

All of the above

Trade Fixture

An article installed by a tenant under the terms of a lease and removable by the tenant before the lease expires. ss (i.e., supermarket shelving, retail checkout stands, or petroleum storage tanks) must be removed by the end of the lease term or it becomes the landlord's property.

Riparian Rights

An owner's rights in land that borders on or includes a stream, river, or lake. These rights include access to and use of the water. (1) In North Carolina, adjacent landowners have unrestricted use of the navigable waters but only own up to the average high water mark. (2) The land between the high and low tide marks (the foreshore) is owned by the state of North Carolina

Emblements are

Annually cultivated crops, attached to the land, and are personal property.

A buyer purchases a fee simple estate and has an undivided interest in common elements associated with the property that includes all the land. What form of ownership interest does the buyer hold?

Condominium

Agricultural Fixtures

Fixtures used in farming operations. They are considered real property. Considered real property in North Carolina

Which of the following has an indefinite ownership period? Freehold estate Nonfreehold estate Estate for years Estate at will

Freehold estate

A life estate conveys to the life tenant

Ownership for life

Which of the following is considered personal property? Masonry fireplace Porch and window awnings Bathtubs Patio furniture

Patio furniture

Co-owners of a fee simple interest in a small office building are neither related to nor a creditor to each other. One owner dies intestate. The surviving owner would become the sole owner of the property under which of the following rights?

Survivorship

A seller is under contract to sell a property using the standard offer to purchase and contract. The elegantly decorated master bedroom has vertical window blinds, hand-painted light switches and electrical outlet covers, and draperies fashioned from fabric coordinated with the wallpaper. Which of the following items may the seller legally remove before the close of the transaction?

The draperies

The land of a common interest community

The land of a common interest community

Water Rights

The legal rights to use the water in a river, stream, or other body the right to use adjacent (next to) water.

Which of the following is NOT TRUE about condominium ownership? It can be mortgaged. All the land is owned as part of the common elements. The ownership can be left to someone through a valid will. The limited common elements can be sold separately.

The limited common elements can be sold separately.

A rancher owns a parcel of land with all subsurface, air, and water rights intact. If oil is discovered on the parcel of land, who owns the oil?

The rancher

Air Rights

The right to use the open space above a property, usually allowing the surface to be used for another purpose. may also be sold or leased independently of surface ownership. (1) Solar or sun rights have become an ownership issue, primarily because of solar energy applications that require direct access to sunlight. (2) View rights, particularly scenic views from a property, have become increasingly valuable. (3) Cities and private owners can lease air space for enclosed pedestrian walkways over public streets and privately owned parcels or for elevated transit systems

A joint tenant sells her interest to a third party. If the original ownership interests were equal, what is the relationship of the new owner with the remaining original owner?

They are tenants in common.

A buyer contracts to purchase real property with the intention of having title transfer to her children upon her death. Which of the following is the best way for the buyer to take title to the purchased property?

a fee estate

A person who acquired ownership that can be inherited, with the provision that the land must always be used for recreational purposes, has

a fee simple determinable estate.

Erosion

a gradual decrease in land caused by flowing water or other natural forces.

Accretion

a gradual increase in land resulting from the deposit of soil by water

Reliction

a gradual increase in land as a result of permanently receding or disappearing water.

The owner of a condominium unit learns that a neighbor has failed to pay his real estate taxes. If the neighbor does NOT pay the taxes

a lien can be filed against the neighbor's unit.

Condominium owners are responsible for paying a monthly common area maintenance fee. If an owner fails to make this payment,

a lien is filed against that owner's unit.

Avulsion

a rapid decrease in land caused by an act of nature such as a flood property boundaries do not change

Subsurface Rights

a. Subsurface rights may be sold or leased separately from the property surface and include the right to remove natural resources from the ground. (1) Mineral rights can be deeded separately for particular minerals or be all inclusive. (2) Oil and gas rights have frequently been severed from the land in states like Texas. (3) North Carolina law now requires a property owner to disclose if oil and/or gas rights have been severed (turn off or cut off) or are going to be severed.

A homeowner acquired the ownership of land that was deposited by a river running through her property by

accretion

Lateral Support

adjacent property keeps the natural boundaries of the property in place

fixture

an article that was once personal property but has been so affixed to land or a building that the law now recognizes it as part of the real estate

The owner of a house wants to fence the yard for a dog. When the fence is erected, the fencing materials are converted to real estate by

annexation

An elderly couple no longer need their large house, so they decide to sell the house and move into a cooperative apartment building. In a cooperative, they will

become stockholders in a corporation.

In North Carolina, a modular home

becomes part of the real estate as soon as it is assembled on site.

A business owner rents an empty building to use as an ice cream parlor. The tenant subsequently installs large freezer units and several service counters. These additions

can be legally removed by the tenant at the termination of the lease

The rights of ownership of real property include all of the following EXCEPT disposition. exclusivity. control. compatibility.

compatibility.

A person who owns one unit in a multi-unit structure together with a specified undivided interest in the common elements would own a

condominium.

An owner of a fee simple estate sells the property with the condition that he will continue to own the entire property until his death. The seller has a

conventional life estate.

A man lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan covering the entire property. Like the other residents, the man owns stock in the corporation and has a lease to his apartment. This type of ownership is called a

cooperative.

A deed that conveys ownership to the grantee as long as the existing building is not destroyed creates a

defeasible fee estate.

All of the following are true statements about a condominium EXCEPT a declaration must be filed before any units may be sold. each unit owner has a fractional undivided interest in the common elements. each owner receives a separate real estate tax statement. each owner has a proprietary lease with the owners' association for the unit.

each owner has a proprietary lease with the owners' association for the unit.

A decedent left a will giving a neighbor the right to use a well on the decedent's land as long as the neighbor was alive. The neighbor's interest in the property is properly called a(n)

easement in gross.

A portion of a building was built on the neighbor's land. This is called an

encroachment

A woman conveys a life estate to her son-in-law and stipulates that upon his death the estate will pass to her grandson. The grandson has an

estate in remainder.

A woman wishes to donate a vacant lot that she owns in fee simple absolute to a hospital that is located next to her lot. An attorney prepares a deed that conveys the ownership of the lot to the hospital "as long as it is used for medical purposes." After the completion of the gift, the hospital will hold a

fee simple determinable estate.

A person who has complete control over a parcel of real estate is said to own a

fee simple estate.

The most all-inclusive type of real property ownership is a

fee simple estate.

Personal property includes all of the following EXCEPT chattels. trade fixtures. emblements. fixtures.

fixtures.

A brother and sister bought a commercial building and took title as joint tenants with right of survivorship. The brother died testate. The sister now owns the building

in severalty.

The phrase, bundle of legal rights

is part of the definition of real property

If the owner of the dominant tenement becomes the owner of the servient tenement and merges the two properties, the easement

is terminated.

A property owner conveys the ownership of his apartment building to a nursing home, anticipating that the rental income will help pay for his father's care at the home. When his father dies, the original owner will recapture the ownership of the apartment building. This is an example of a

life estate pur autre vie.

An example of a limited common element in a condominium project is a

locked storage unit.

Generally, personal property can be distinguished from real property by its

mobility.

The ownership rights to real estate include all of the following EXCEPT buildings located on the property. air space above the property. easements running with the land. navigable rivers running through the property.

navigable rivers running through the property.

After construction of a building over a railroad right-of-way, the trains may

operate as usual.

A trade fixture is considered

personalty.

In order to create a joint tenancy relationship in the ownership of real estate, there must be unities of

possession, time, interest, and title.

A homestead estate is one that

protects land that includes the family home from creditors.

Fixtures are

real property

Improved land

refers to land that has a structure on it (a house)

Three joint tenants own a parcel of land. One owner sells his interest to a long-time friend. After the conveyance, the remaining original owners

remain joint tenants with each other.

A person currently has the legal right to occupy and use a certain residential structure. The interest in the property could be all of the following EXCEPT fee simple. remainder. leasehold. life estate.

remainder.

All of the following statements about manufactured housing in North Carolina are true EXCEPT a manufactured home is constructed per HUD construction standards. it has a vehicle identification number while mobile. an attached HUD label is required for transfer of title. removal of the wheels and axles converts a manufactured home to real property.

removal of the wheels and axles converts a manufactured home to real property.

Disposition (DEEP C)

right to determine how to dispose of the property

exclusion (DEEP C)

right to legally refuse to create interests for others

Appurtenances

rights or privileges that "run with the land" are passed with the property ownership unless legally severe

The rights of the owner of property located along the banks of a small stream are called

riparian rights.

Real property can become personal property by

severance.

All of the following are tests for determining a fixture EXCEPT intent of the parties. size of the item. method of attachment of the item. adaptation of the item to the real estate.

size of the item.

A brother and a sister can NOT concurrently own real estate in North Carolina as remainder devisees. tenants by entireties. joint tenants. tenants in common.

tenants by entireties.

One of two owners holds an undivided 60 percent interest and the other holds an undivided 40 percent interest. The two owners probably hold their interests as

tenants in common.

The severalty owner of a parcel of land sells it. The buyer insists that the owner's wife also sign the deed. The purpose of obtaining the wife's signature is to

terminate any rights the wife may have in the property.

Improved Lot

that basic services are available (electricity, phone, street access, etc.

A property held as tenancy by the entirety in North Carolina requires that

the co-owners must be husband and wife.

A North Carolina seller had signed a security agreement to finance a new heat pump prior to listing his house. Since the seller has only ten more payments left,

the heat pump remains personalty that can be removed prior to closing.

The North Carolina owner of a secluded area adjacent to the Atlantic Ocean noticed that people from town walked along the shore in front of this property. The owner learned that the local citizens had been walking along this beach for years. The owner went to court to try to stop people from walking along the water's edge in front of the property. The owner is likely to be The rancher The tenant farmer to whom the property has been leased The state government The federal government

the rancher

Control (DEEP C)

the right to determine the use of the property within the framework of the law

Possession (DEEP C)

the right to occupy the premises

An ownership interest that is based on pre-set occupancy periods occurring over five years or more is called

time-share ownership.

A commercial tenant attaches several items to the rental property during the term of the lease. Those items are considered

trade fixtures and may be removed by the tenant by the end of the lease.

Enjoyment (DEEP C)

uninterrupted use without harassment or interference from a third party with a superior title

The North Carolina owner of a secluded area adjacent to the Atlantic Ocean noticed that people from town walked along the shore in front of this property. The owner learned that the local citizens had been walking along this beach for years. The owner went to court to try to stop people from walking along the water's edge in front of the property. The owner is likely to be

unsuccessful, because the owner's property extends only to the high-water mark and the public can use the land beyond this point.

Subjacent Support

use of subsurface rights must continue to support the surface of the property