Rights; Interests and Estates; Ownership

Which of the following would be defined as real estate as opposed to real property?

• Wells, driveways, and signs on a parcel of land.

• Mobile homes temporarily parked on a parcel of land.

• Timber that an owner or tenant has placed on a parcel of land.

• Business equipment an owner or tenant has placed on a parcel of land.

Answer explanation

The legal concept of real estate encomapsses land and all man-made structures that are "permanently" attached on land.

Which of the following would be considered a property improvement?

• An alteration to land to make it more useful.

• An increase in the value of a property.

• A chicken coop permanently attached to land.

• A parcel of land that has passed a percolation test.

Answer explanation

Improvements to real estate include such things as fences, streets, buildings, wells, sewers, sidewalks and piers. Modifications to land or a developers prep of a parcel can include such activities as grading or clearing, neither of which are considered to be "improvements" in this sense of the word.

Which of the following best describes the physical boundaries of land?

• The surface of the earth and infinite space above the surface.

• The center of the earth and infinite space above the earth.

• The surface of the earth and all water and minerals on or below the surface to the center of the earth.

• The surface of the earth and the air rights above the surface to the point defined by local zoning, earth.

The "bundle of rights" refers to a set of rights

• enjoyed by the owner of a property.

• that is synonymous with the Bill of Rights.

• guaranteed to citizens by the Statute of Rights.

• specified in a deed or land contract.

Answer explanation

Remember PUTTE ( Possess, use, transfer, encumber, and exclude)

Which of the following best describes the legal concept of personal property?

• Any item which is acquired in a fee simple sale transaction.

• Any item of property that is not definable as real property.

• Any movable property owned by an individual, partnership, or corporation.

• Any item that is not a natural item affixed to the earth.

The right to encumber a property means that the owner can

• sell the property to an encumbered party.

• pledge the property as collateral for debt.

• lease the property.

• assign the bundle of rights to another.

Answer explanation

Personal property is any owned item which is not real estate, and the rights associated with owning the personal property.

A property owner leases 60 acres of agricultural land for a renewable period of 5 years. In the context of real estate rights, this lease represents a(n)

• transfer of a portion of the bundle of rights.

• encroachment on the bundle of rights.

• conveyance of the complete bundle of rights.

• encumbrance of the tenant’s rights.

Answer explanation

An ordinary lease isa common ex of the transfer of a portion of one's bundle of rights. The owner relinquishes the right to possess portions of the surface, perhaps a building, in return for rent. During the lease the tenant has no right to property's subsurface or airspace other than what the building occupies. They can't encumber or transfer the property as well.

A homeowner is very upset over a drone that a neighbor flies over his house. He takes his case to court to end this possible violation of rights. Does he have a case, and on what basis?

• No. The neighbor is not physically on his property.

• No. The drone is in the air, so he cannot exercise any surface rights.

• Yes. The owner has the right to stop encroachments.

• Yes. The drones infringe on his air rights.

Littoral rights apply to which of the following?

• Boatable ponds entirely contained within the boundaries of an owner's property.

• Streams and rivers.

• Navigable lakes, seas, and oceans.

• Navigable streams and rivers.

A retired couple has just bought a retirement home with a pier on a large lake. In this case the retirees' water rights extend to

• the high water mark of the body of water at the shoreline.

• the low water mark of the body of water at the shoreline.

• the center of the lake.

• the end of the pier.