Question | Answer |
Define Land | The earth adn all that is on it's surface, below the surface and above the surface |
Define Real Estate | Land and all that is permanently attached to the land excluding the Bundle of Rights |
Define Bundle of Rights | The collective name for the basic rights of real property including but not limited to:- the right occupy, use, allow others to use, rent, restrict the use, keep others off, leave, abandon and convey ownership |
Define Fixture | an itme of personal property that has been changed to real property as a result of permanent attachment to the real property |
Define Personal Property | Everything that is not attached to the land and not attached to the buildings or improvements to the land. ALSO known as "Chattels" or "Personalty". |
Is it possible to change an itme of real estate to personal propery? | Yes |
What is the term for this process | Severance |
Give an example of the process | A tree growing on the land is considered real property. If you cut down the tree and cut it into firewood, the tree then become personal property. |
The courts have established legal guidelines for defining a fixture. These guidelines include the following (4) Hint: CIAA | Contract: The use of a CONTRACT to define the itemIntention: THe INTENT of making the item a permanent attachment Annexation: The means of ATTACHMENT of the item to the propertyAdaptation: the relationship of the item to the property. |
List the 3 physical characteristics of Land | DIFF.....Different (all parcels are different), Indestructible (esentially indestructible), Fixed (in location) |
Define Severance | The detaching of something affixed to real property that changes it from real property to personal property. |
Define "subsurface rights" | Rights to all that is below the land to the center of the earth - minerals, oil, water, etc |
Define "air rights" | Rights to all that is above the land into the sky with the exception of aviation |
Define Trade Fixtures | A special fixture that is owned & installed by a business tenant into a rental unit as a necessary part of a trade or business. It can be removed before hte lease expire. It's considered personal property |
Define the Economic Characteristics of LandHint: LIPP | LIPP: L: Limited Supply I: Improvements to the land P: Permanence economically feasible over the long term. P: Perference of desirability over another location, now as "situs" |
The term real estate includes all of the following except:A)air rights above the landB) growing oak & sycamore treesC) tractors & treshersD) barns & fences | C) Tractors & Treshers because they are not permanently attached. |