Unit #2 Real Property and the Law

One defining difference between Real Estate ( real property ) and Personal Property is that Real Estate includes .....

• Land and the rights and interests inherent in the ownership of land, while personal property includes only air & mineral rights .

• The Trees & Air rights, while personal property includes the house and its contents .

• Land and all things permanently attached, while personal property includes property that is movable.

• Annual crops, while personal property includes mineral rights .

A book store owner rents space in a commercial building. The book store has large tables fastened to the walls where costumers are encouraged Sit and Read. Shelves create aisles from the Front of the store to the Back. The shelves are bolted to both ceiling and the floor. Which of these BEST characterizes these tables and shelves?

• The Shelves and the Tables are trade fixtures and will be sold when the owner sells the building .

• The shelves and the tables are trade fixtures and must be removed before the book stores lease expires; the tenant is responsible to the land lord for any damage that their removal causes to the premises .

• Because the bookstore is a tenant, the shelves and tables are fixtures and may not be removed, except with owner's permission .

• Because shelves and tables are attached to the building, they are treated the same way as other fixtures .

Which of these is considered the MOST important characteristic of land ?

• Air Rights .

• Permanence .

• Subsurface Rights .

• Location .

Another term for PERSONAL PROPERTY is ......

• Fixtures .

• Realty .

• Chattels .

• Fructus Naturales .

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 ?

• Exclusion .

• Legal Enjoyment .

• Control .

• Disposition .

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 ft into the bedrock and sold it for gravel. When the farm owner died, he left the farm to his daughter.

Which if these statements is TRUE :

• The daughter inherent nothing because the farm no longer exists .

• The daughter owns the Gravel, Limestone, and Top Soil, no matter where it is .

• The daughter inherits a large hole in the ground, but it is still a farm, down to the center of the earth .

• The mans estate must restore the land to its original condition .

The Buyer & the Seller of a home are debating whether a certain item is Real or Personal Property. The Buyer says it's Real Property and should convey with the house; the Seller says it's 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 .....

• whether it's removal would cause severe damage to the Real Estate .

• Whether the item is clearly adapted to the

  Real Estate .

• The cost of the item when it was purchased .

• Any relevant agreement of the parties in their contract of sale .

Which of these best describes the economic characteristics of real estate ?

• Scarcity, Improvements, and Location .

• Location, Uniqueness, and Indestructibility .

• Scarcity, Immobility, and Improvements .

• Attachment, Location, Improvements .

An owner decides to sell her house and takes the antique front door with her when she moves. In the absence of any of provision in the contract, is the owner allowed to remove the door ?

• NO, this act of severance is not allowed at time of selling because the door is a fixture .

• YES, the owner can remove the door, and the act is called accession .

• NO, this is conversion .

• YES, the owner can remove the door, ands the act is called separation .

when moving into a newly purchased home, the Buyer discovered that the Seller had taken the electric lighting units that where 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 :

• The lighting fixtures belong to Seller because he installed them as Personal Property .

• These lighting fixtures are considered trade fixtures and could be removed .

• Installed lighting units normally are considered Real Estate fixtures .

• Original lighting fixtures are Real Property, but replacement lighting is Personal Property and can be taken by the seller .