Chapter 8 Section 1

Question 1

real estate

Answer 1

-real estate is physical, tangible and immobile
-includes earth’s surface, subsurface, and air above surface
-includes anything growing in the land, anything permanently attached to the land, and all improvements on and to the land
-improvements are anything man made such as buildings or other relatively permanent structures attached to or on the land
-definition of real estate includes everything provided by nature

Question 2

real property

Answer 2

-includes the physical land and improvements together with legal rights to own or use the property
-an individual’s property rights are guaranteed and protected by government

Question 3

riparian rights

Answer 3

-rights of an owner whose property borders a flowing waterway: river/stream
-property owner is not considered to be the owner of the water flowing over or past the property
-property owner has a right to reasonable use of the water such as fishing, swimming, etc

Question 4

littoral rights

Answer 4

-rights of owners of property bordering non-flowing water such as ocean, sea, or lake
-these rights generally give the property owner rights only to the shoreline or high-water mark
-for ocean properties, the ownership extends to the mean high-tide mark

Question 5

erosion

Answer 5

-loss of soil that is carried away by water washing against a riverbank or beach

Question 6

accretion

Answer 6

-increase in land area as moving water deposits soil in other than its original location
-opposite of erosion

Question 7

alluvion

Answer 7

-soil resulting from accretion

Question 8

relliction

Answer 8

-exposure of dry land once covered by water when the level in a lake recedes, or a river or stream changes course

Question 9

personal property/personalty/chattel

Answer 9

-personal property is movable
-furniture, automobiles, stocks, bonds, money, mortgages

Question 10

fixture

Answer 10

-an item that was once personal property, but has been installed or attached to the land or building in a permanent way that has caused it to become part of the real estate
-when a residential tenant adds a fixture to a property, it cannot be removed at the expiration of the lease and becomes property of the landlord

Question 11

trade fixtures

Answer 11

-articles of personal property that have been attached to real property that is rented or leased by a tenant and used in the conduct of business
-not considered being part of the real estate and can be removed during or at the termination of a lease

Question 12

real property vs personal property

Answer 12

-unless contract states otherwise, sale of real property does not include items of personal property
-courts may be called upon to decide lawsuits between parties over which items to include in the sale
-courts will employ four tests

Question 13

intent of the parties (test 1)

Answer 13

-by reviewing the listing and sales contracts, the court may be able to decide what was intended
-words and actions of the parties, before, during, and after the sale may also be considered in making this decision

Question 14

relationship of the parties (test 2)

Answer 14

-the terms of a lease may specify that certain improvements made by a tenant during the term of the contract may be removed at the expiration of the lease

Question 15

method of annexation (test 3)

Answer 15

-how an article is attached to the property may very well determine whether an item should be removed or not
-typically, if tools are required and damage may occur to the item, it is classified as real estate

Question 16

adaptation of the article (test 4)

Answer 16

-looks into the manner in which the item in dispute is being used
-if the item is necessary to fulfill the purpose and utility for which the building was constructed, the court will usually decide the item is real property

Question 17

possession

Answer 17

-an owner has a right to possess or occupy the property

Question 18

disposition

Answer 18

-an owner generally has the right to sell the property, to give it away, or to leave it in a will

Question 19

enjoyment

Answer 19

-owner has the right to prevent others from entering or using their property

Question 20

control

Answer 20

-owner has a right to determine how the property will be used