Chapter 2 Quiz
When moving into a newly purchased home, the buyer discovered that the seller had taken the electric lighting units that were installed over the vanity in the bathroom. The seller had not indicated in the sales contract that these would be removed. Which of these is TRUE? Select one: a. Installed lighting units normally are considered real estate fixtures. b. The lighting fixtures belong to the seller because he installed them as personal property. c. Original lighting fixtures are real property, but replacement lighting is personal property and can be taken by the seller. d. The lighting fixtures are considered trade fixtures and could be removed.
a. Installed lighting units are normally considered as real estate fixtures
Which of these is considered personal property? Select one: a. patio furniture b. woodburning fireplace c. bathtubs d. awnings
a. patio furniture
Which of these is an example of an appurtenance? Select one: a. water rights b. a trade fixture c. personal property d. a fixture
a. water rights
A bookstore owner rents space in a commercial building. The bookstore has large tables fastened to the walls where customers are encouraged to sit and read. Shelves create aisles from the front of the store to the back. The shelves are bolted to both the ceiling and the floor. Which of answer BEST characterizes the tables and shelves? Select one: a.Because the shelves and tables are attached to the to the building, they are treated the same way as other fixtures. b. The shelves and tables are trade fixtures and must be removed before the bookstore's lease expires; the tenant is responsible to the landlord for any damage that their removal causes to the premises. c. Because the bookstore is a tenant, the shelves and the tables are fixtures and may not be removed, except with the owner's permission. d. The shelves and the tables are trade fixtures and will be sold when the owner sells the building.
b. The shelves and tables are trade fixtures and must be removed before the bookstore's lease expires; the tenant is responsible to the landlord for any damage that their removal causes to the premises.
A buyer is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called Select one: a. permanence of investment. b. area preference. c. physical deterioration. d. immobility.
b. area preference
All of these rights are included in the right to control one's property EXCEPT to Select one: a. erect No Trespassing signs. b. exclude utility meter readers. c. sell the property to a neighbor. d. enjoy profits from its ownership.
b. exclude utility meter readings
A homeowner is building a new enclosed front porch on his home. A truckload of lumber has been left in his driveway for use in building the porch. At this point, the lumber is considered: Select one: a. a trade fixture or a chattel fixture. b. personal property. c. a chattel that is real property. d. a fixture, because it will be permanently affixed to existing real property.
b. personal property
According to law, a trade fixture is usually treated as Select one: a. a fixture. b. personalty. c. an easement. d. a license.
b. personalty
The phrase bundle of legal rights is properly included in Select one: a. a legal description. b. the definition of real property. c. real estate transactions d. leases for less than one year.
b. the definition of real property
A person buys a parcel of natural forest. The person then immediately cuts down all the trees and constructs a large shed out of old sheets of rusted steel for storing turpentine, varnish, and industrial waste products. Which of these is TRUE about this rusty shed? Select one: a. Altering the property in order to construct a shed is not included in the bundle of rights. b. The owner's action constitutes improvement of the property. c. If the owner is in the business of storing toxic substances, the shed is a trade fixture. d. The shed is personal property.
b. the owner's actions constitutes improvement of the property
When an owner of real estate sells the property to someone else, which of the "sticks" in the bundle of legal rights is she using? Select one: a. Exclusion b. Legal Enjoyment c. Disposition. d. Control.
c. Disposition
An owner decides to sell her house and takes the antique front door with her when she moves. In the absence of any provision in the contract, is the owner allowed to remove the door? Select one: a. No, this is conversion. b. Yes, the owner can remove the door, and the act is called accession. c. No, this act of severance is not allowed at time of selling because the door is a fixture. d. Yes, the owner can remove the door, and the act is called separation.
c. No, this act of severance is not allowed at time of selling because the door is a fixture.
A man inherited a farm from his uncle. As a new owner, the first thing he did with the vacant property was to remove all the topsoil, which he sold to a landscaping company. He then removed a thick layer of limestone and sold it to a construction company. Finally, he dug 40 feet into the bedrock and sold it for gravel. When the farm owner died, he left the farm to his daughter. Which of these statements is TRUE? Select one: a. The daughter inherits nothing because the farm no longer exists. b. The daughter owns the gravel, limestone, and top soil, no matter where it is. c. The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth. d. The man's estate must restore the land to its original condition.
c. The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth.
Intent of the parties, method of attachment, adaptation to real estate, and agreement between parties are the legal tests for determining whether an item is: Select one: a. real property or real estate. b. an improvement. c. a fixture or personal property. d. a trade fixture or personal property.
c. a fixture or personal property
The buyer and the seller of a home are debating whether a certain item is real or personal property. The buyer says it is real property and should convey with the house; the seller says it is personal property and would not convey without a separate bill of sale. In determining whether an item is real or personal property, a court would NOT consider: Select one: a. whether its removal would cause severe damage to the real estate. b. whether the item was clearly adapted to the real estate. c. the cost of the item when it was purchased. d. any relevant agreement of the parties in their contract of sale.
c. the cost of the item when it was purchased
Which of these is considered the MOST important characteristic of land? Select one: a. Subsurface Rights b. Permanence c. Air Rights d. Location
d. Location
Parking spaces in multiunit building, water rights, and other improvements are classified as Select one: a. subsurface rights b. trade fixtures. c. emblements. d. appurtenances.
d. appurtenances
Another term for personal property is Select one: a. fixtures. b. fructus naturales. c. realty. d. chattels.
d. chattels
One defining difference between real estate (real property) and personal property is that real estate includes Select one: a. land and the rights and interests inherent in the ownership of land, while personal property includes only air and mineral rights. b. the trees and air rights, while personal property includes the house and its contents. c. annual crops, while personal property includes mineral rights. d. land and all things permanently attached, while personal property includes property that is movable.
d. land and all things permanently attached, while personal property includes property that is movable
Which answer BEST describes the economic characteristics of real estate? Select one: a. location, uniqueness, and indestructibility b. attachment, location, and improvements c. scarcity, immobility, and improvements d. scarcity, improvements, and location
d. scarcity, improvements, and location
