What is the difference between real and personal property?
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What are AIR RIGHTS?
The right to use the open space above a property, generally allowing the surface to be used for another purpose.
Air rights can be an important part of real estate, particularly in cases where air rights must be purchased to construct large office buildin
What are the Bundle of Legal Rights?
Ownership rights of real property which includes:
1. Right of possession,
2. Right to control the property within the framework of the law,
3. Right of exclusion (to keep others from entering or using the property), and
4. Right of disposition (to sell, w
What is an improvement?
Any artificial thing attached to land.
What is real estate?
It is land plus permanent human-made additions.
What is Real Property?
It is real estate plus "bundle of legal rights
Whar are water rights?
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What defines Personal Property?
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What is the key to success?
Thorough product knowledge.
What is land?
Earths surface to the center of the earth and airspace above the land including the trees and the water.
What is Real Property?
Land and anything permanently attached to it.
What is Subsurface Rights?
Are the rights to use the surface of the earth. An owner may transfer surface rights without transferring the subsurface rights.
What is property?
Anything that can be owned.
Appurtenance
A right, privilege, or improvement belonging to, and passing with, the land.
Mine Subsidence
The process of downward land shifts due to the collapse of underground mine shafts and groundwater flows, usually resulting in sinkholes and troughs. The damage to structures may be functional, cosmetic, or structural.
Severance
Changing an item of real estate to personal property by detaching it from the land; for example, cutting down a tree.
Annexation
The process of converting personal property into real property.
Real Property versus Personal Property
Real property is conveyed by deed, while personal property is conveyed by a bill of sale or receipt.
Personal property is moveable and not a perennial crop
Fixture
Personal property attached to real property with the intention of becoming permanently a part thereof
Personal Property
Items, called chattels, that do not fit into the definition of real property; movable objects.
Trade Fixture
Item of personal property attached to real estate that is owned by the tenant and is used for business; legally removable by tenant.
Manufactured housing
Is initially registered as a motor vehicle, and is considered generally as personal property, but can be converted to real property
Emblements
Growing crops, such as grapes and corn, which are produced annually through labor and industry; also called fructus industriales.
The overall test used to determine whether an item is a fixture (real property) or personal property
The question of INTENT
In determining intent, courts use the following three basic tests:
1. Method of annexation
2. Adaptation to Real Estate
3. Agreement
Adaptation to Real Estate
Is the item being used as real property or personal property? For example, a refrigerator is usually considered personal property. However, if a refrigerator has been adapted to match the kitchen cabinetry, it becomes a fixture.
Method of annexation
How permanent is the method of attachment? Can the item be removed without causing damage to the surrounding property?
Agreement
Have the parties agreed to treat an item as though it is real or personal property?
The most commonly disputed items between buyers and sellers
1. Draperies
2. light fixtures
3. appliances
Examples of Trade Fixtures
bowling alleys, store shelves, and barroom and restaurant equipment
Characteristics of real estate
Real estate possesses seven basic characteristics that define its nature and affect its use. These characteristics fall into two general categories: economic and physical.
Four Economic Characteristics of Real Estate
The four economic characteristics of land that affect its value as a product in the marketplace are:
1. Scarcity
2. Improvements
3. Permanence of investment
4. location or area preference.
Scarcity
Land isn't generally considered a rare commodity, but only about a quarter of the earth's surface is dry land; the rest is water. The total supply of land is not limitless. Even though a considerable amount of land remains unused or uninhabited, the avail
Improvements
Building an improvement on one parcel of land can affect the land's value as well as the use of neighboring tracts and whole communities. For example, improving a parcel of real estate by building a shopping center or selecting a site for a nuclear power
Permanence of investment
The capital and labor used to build the improvement represent a large fixed investment. Although even a well-built structure can be razed to make way for a newer building, improvements such as drainage, electricity, water, and sewerage remain. The return
Location or area preference
Area preference or situs ("to place") refers not only to geography but also to people's preference for a specific area. Area preference is based on several factors, such as convenience, reputation, and history. It is the unique quality of these preference
Physical Characteristics of Real Estate
Land has three physical characteristics:
1. Immobility
2. Indestructibility
3. Uniqueness
Immobility
Although some of the substances of land are removable and topography can be changed, the geographic location of any given parcel of land can never be changed. Its location is fixed�immobile.
Indestructibility
Land is also indestructible. This permanence of land, coupled with the long-term nature of improvements, tends to stabilize investments in real property.
The fact that land is indestructible does not, however, change the fact that improvements depreciate
Uniqueness
Uniqueness, or nonhomogeneity, is the concept that no two parcels of property are exactly the same or in the same location. The characteristics of each property, no matter how small, differ from those of every other. An individual parcel has no substitute
The specific areas of law that are important to the real estate licensee include
1. Law of contracts
2. General property law
3. The law of agency
4. state-specific real estate license law
What are the bodies of law that are important to real estate transactions?
1. Federal regulations, such as environmental laws
2. Federal Law
3. State Law
4. Local TAX LAWS
Summary of Unit 1
Land is the earth's surface, the mineral deposits under the surface, and the air above it. Real estate further expands this definition to include all natural and man-made improvements attached to the land. Real property describes real estate plus the bund
Chattel
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