Term
| true or false: Private ownership rights in this country are not absolute. |
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Definition
true; The government can impose taxes and restrictions on private ownership rights, and it can take private property away altogether.
A neighbor can claim the right to walk across someone’s property whether the owner likes it or not, provided they have done so for a certain number of years. |
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Term
| true or false: A simple definition of real estate is that it is air, water, land, and everything affixed to the land. |
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Definition
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Term
| what is a parcel or tract of land? |
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Definition
| a portion of land delineated by boundaries. |
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Term
| The legal concept of land encompasses: |
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Definition
the surface area of the earth.
everything beneath the surface of the earth extending downward to its center.
all natural things permanently attached to the earth.
the air above the surface of the earth extending outward to infinity. |
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Term
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Definition
| Land is immobile, since a parcel of land cannot be moved from one site to another. In other words, the geographical location of a tract of land is fixed and cannot be changed. You can transport portions of the land such as mined coal, dirt, or cut plants. However, as soon as such elements are detached from the land they are no longer considered land. |
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Term
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Definition
| Land is indestructible in the sense that one would have to remove a segment of the planet all the way to the core in order to destroy it. Even then, the portion extending upward to infinity would remain. For the same reason, land is considered to be permanent. |
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Term
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Definition
| Land is nonhomogeneous, since no two parcels of land are exactly the same. Admittedly, two adjacent parcels may be very similar and have the same economic value. However, they are inherently different because each parcel has a unique location. |
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Term
DUSTS stands for:
hint (the five economic characteristics affecting the value of land in the marketplace) |
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Definition
DEMAND—The more demand there is for a particular property, the more valuable it is to consumers looking for real estate.
UTILITY OR USEFULNESS—A three-bedroom house is more useful to more consumers than a one- or two-bedroom house.
SCARCITY—A property will sell quickly if only a few properties in a particular area are on the market.
TRANSFERABILITY—When loans are available, and rates are low, real estate is readily transferable from seller to buyer.
SITUS (meaning site)—The unique attractiveness of a property’s location is a major determinant of the other economic characteristics.
Lack of any of these items diminishes the market value (the price a buyer will be willing to pay) of the property. |
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Term
| The legal concept of real estate encompasses: |
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Definition
land.
all manmade structures that are “permanently” attached to the land. |
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Term
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Definition
| Real estate includes, in addition to land, such things as fences, streets, buildings, wells, sewers, sidewalks and piers. Such manmade structures attached to the land are called improvements. The phrase “permanently attached” refers primarily to one’s intention in attaching the item. |
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Term
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Definition
| air, surface, subsurface and natural attachments |
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Term
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Definition
| land + man-made attachments |
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Term
| true or false: If the item is not owned, it is not property. For example, if a car is abandoned and left to rust in the desert, the car is no longer property, since no one claims ownership |
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Definition
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Term
| what is a bundle of rights? |
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Definition
roperty is not only the item that is owned but also a set of rights to the item enjoyed by the owner. These rights are commonly known as the “bundle of rights” and include the rights to:
possess.
use.
transfer.
encumber.
exclude. |
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Term
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Definition
leave (a personal estate or one's body) to a person or other beneficiary by a will.
"he bequeathed his art collection to the town" |
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Term
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Definition
| ownership of real estate and the bundle of rights associated with owning the real estate. |
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Term
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Definition
| ownership of anything that is not real estate, and the rights associated with owning the personal property item. Items of personal property are also called chattels or personality. Chattels are transferred by means of a bill of sale. The Uniform Commercial Code regulates the transfer of chattels and the use of chattels as security for debts. |
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Term
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Definition
| physical, visible, and material. |
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Term
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Definition
abstract, having no physical existence in itself, other than as evidence of one’s ownership interest.
stock certificates, contracts, patents, copyrights, bonds, trademarks, franchises, listing agreements |
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Term
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Definition
| is defined as land or improved property with buildings designed for humans to live in, such as single-family homes, multifamily homes, apartments, vacation homes, or condominiums. |
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Term
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Definition
| is land used for industrial purposes, such as warehouses, factories, distribution centers, and power plants. |
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Term
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Definition
| refers to income-producing property, such as office buildings, restaurants, shopping centers, hotels and motels, parking lots, and stores. Some industrial properties may also fall into this category. |
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Term
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Definition
| defined as land used primarily for growing crops or raising livestock, such as farms, pastureland, orchards and timberland. Zoning ordinances are usually favorable for agriculture use. |
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Term
| special purpose real estate |
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Definition
is property that does not fall into one of the above categories. It has a unique use to the persons who own and use it, such as churches, hospitals, schools, and government buildings. Other types of property that fall into the special use category include:
Public open space—usually owned by private persons or the government and includes undeveloped shorelines, public parks and lakes.
Recreational areas—such as parks, water access areas, trails, and shorelines. These are usually preserved for ecological or educational reasons. |
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Term
| What are the three physical characteristics of land? |
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Definition
Immobile or permanent
Indestructible
Nonhomogeneous or unique |
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Term
| Explain the differences between the legal concepts of land and real estate. |
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Definition
| Land encompasses the surface of the earth, whatever is below the surface, whatever is above extending into space, and every natural thing that is permanently attached to the earth. Real estate includes all this plus all manmade things permanently attached to the earth. |
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Term
| Define special purpose real estate and give an example. |
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Definition
| Property that has a unique use to the persons who own and use it, such as churches, hospitals, schools, and government buildings. |
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Term
| in the bundle of rights, what is the right of possession? |
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Definition
(example) a person buys a house and obtains financing. The person purchasing the house becomes the registered owner and has both possession and right of possession. The finance provider would be the lienholder and have a security interest that, upon default, would become a right of retention.
This property owner may rent out the house, and the tenants would be in possession of the house but only for the length of the lease agreement. the owner still has the right of possession after the the lease has expired |
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Term
| in the bundle of rights, what is the right to use? |
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Definition
| the right to use the property in certain ways such as mining, cultivating, landscaping, razing, and building on the property. (subject to the local zoning and the legality of the use |
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Term
| in regards to the bundle of rights, what is the right to transfer? |
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Definition
| The right to transfer interests in the property includes the right to sell, bequeath, lease, donate, or assign ownership interests |
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Term
| in regards to the bundle of rights, what is the right to encumber? |
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Definition
| The right to encumber the property essentially means the right to mortgage the property as collateral for debt |
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Term
| in regards to the bundle of rights, what is the right to exclude? |
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Definition
| The right to exclude gives the property owner the legal right to keep others off the property and to prosecute trespassers. |
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Term
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Definition
| Land can be laterally severed into surface rights, air rights, and subsurface rights. |
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Term
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Definition
| apply to the real estate contained within the surface boundaries of the parcel. This includes the ground, all natural things affixed to the ground, and all improvements. Surface rights also include surface water rights. |
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Term
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Definition
| apply to the space above the surface boundaries of the parcel, as delineated by imaginary vertical lines extended to infinity. |
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Term
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Definition
| apply to land beneath the surface of the real estate parcel extending from its surface boundaries downward to the center of the earth. Notable subsurface rights are the rights to extract mineral and gas deposits and subsurface water from the water table. |
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Term
| true or false: in regards to subsurface rights, in many states, oil, gas, and other mineral rights are separate estates. |
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Definition
| true; For example, a landowner might sell to an oil company their rights to any oil or gas found in the land, but keep the rights to all other minerals found on the land. |
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Term
| what variables determine the water rights an owner of a property that contains, or adjoins, a body of water. |
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Definition
whether the state controls the water.
whether the water is moving.
whether the water is navigable. |
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Term
| Doctrine of Prior Appropriation |
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Definition
Since water is a resource necessary for survival, some states—particularly those where water is scarce—have taken the legal position that the state owns and controls all bodies of water.
This position requires that property owners obtain permits for use of water. If a proposed usage is reasonable and beneficial, the state will grant a permit, which, over time, can attach to the property of the permit holder. |
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Term
| true or false: If a state does not operate under prior appropriation, it operates under the common law doctrines of littoral rights and riparian rights. |
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Definition
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Term
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Definition
Littoral rights concern properties abutting bodies of water that are not moving, such as lakes and seas. Owners of properties abutting a navigable, nonmoving body of water enjoy the littoral right of use, but do not own the water or the land beneath the water. Ownership extends to the high-water mark of the body of water.
The legal premise underlying the definition of littoral rights is that a lake or sea is a navigable body of water, and therefore, public property owned by the state. By contrast, a body of water entirely contained within the boundaries of an owner’s property is not navigable. In such a case, the owner would own the water as well as unrestricted rights of usage. |
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Term
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Definition
Navigable: if the waterway in question is navigable, it is considered to be a public easement. In such a case, the owner’s property extends to the water’s edge, as opposed to the midpoint of the waterway. The state owns the land beneath the water. However, the landowner has right to all accretions, which is the land resulting from the soil buildup caused by the natural action of the river or stream.
Nonnavigable: if the property abuts a nonnavigable stream, the owner enjoys unrestricted use of the water and owns the land beneath the stream to the stream’s midpoint. |
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Term
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Definition
| Groundwater is water located below the earth’s surface, below the saturation point, in underground geological formations called aquifers. Some states employ a rule of capture regarding groundwater use rights. The rule of capture allows a property owner to pump a regulated amount of water. Landowners who negligently remove excessive water may be liable for sinkage in neighboring properties. |
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Term
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Definition
| an increase of land created by deposits of soil by the natural flow of water. |
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Term
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Definition
| a gradual loss of land caused by flowing water or wind. The opposite of accretion. |
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Term
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Definition
| a loss of land by a sudden and large-scale change in water flow (e.g., the ocean washes away the waterfront during a typhoon, or heavy rains change the flow of a stream). In either event, the owner still owns the land underlying the water’s previous location. |
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Term
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Definition
| Increase in land due to the receding of water from the shore. |
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Term
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Definition
| the actual soil, rock, and other matter moved by flowing water which results in accretion. |
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Term
| Name the five major rights included in the bundle of rights to real estate. |
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Definition
| possess, use, transfer, encumber, exclude |
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Term
| What is the difference between littoral rights and riparian rights? |
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Definition
Littoral rights concern properties that border bodies of water that are not moving.
Riparian rights concern properties that border moving water such as streams and rivers. |
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Term
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Definition
A personal property item that has been converted to real property by attachment to real estate is called a fixture. Typical examples are chandeliers, toilets, water pumps, septic tanks, and window shutters.
The owner of real property inherently owns all fixtures belonging to the real property. When the owner sells the real property, the buyer acquires rights to all fixtures.
Fixtures not included in the sale must be itemized and excluded in the sale contract. |
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Term
| trade fixture, or chattel fixtures |
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Definition
| items of a tenant’s personal property that the tenant has temporarily affixed to a landlord’s real property in order to conduct business. Trade fixtures may be detached and removed before, or upon surrender, of the leased premises |
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Term
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Definition
Growing plants, including agricultural crops, may be either real property or personal property. Plants and crops that grow naturally, without requiring anyone’s labor or machinery, are considered real property.
Plants and crops requiring human intervention and labor are called emblements. Emblements, despite their attachment to land, are considered personal property. If an emblement is owned by a tenant farmer, the tenant has the right to the harvested crop, whether the tenant’s lease is active or expired. If the tenant grew the crop, it is their personal property, and the landlord cannot take it. |
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Term
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Definition
| is the conversion of real property to personal property by detaching it from the real estate, such as by cutting down a tree, detaching a door from a shed, or removing an antenna from a roof |
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Term
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Definition
| s the act of converting personal property to real property by attaching it to the real estate, such as by assembling a pile of bricks into a barbecue pit, or constructing a boat dock from wood planks. |
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Term
| Classifying an item of property as real or personal is not necessarily fixed. The classification may be changed by the process of: |
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Definition
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Term
| allodial system of ownership |
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Definition
| Around the seventeenth century, the allodial system of ownership came into being. Under the allodial system, individuals are entitled to own property without proprietary control by the king or government. The allodial system and the right of individuals to own property is one of the foundations upon which our country was built. All property in the United States is under the allodial system. |
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Term
| Government entities regulate the following aspects of real property interests: |
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Definition
the bundle of rights: possession, usage, transfer, encumbering and exclusion.
legal descriptions.
financing.
insurance.
inheritance.
taxation. |
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Term
| Federal Regulation of real property |
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Definition
In regulating real property rights, the federal government is primarily concerned with broad standards of real property usage, natural disaster, land description, and discrimination.
Federal flood insurance legislation requires certain homeowners to obtain flood insurance policies |
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Term
| state regulation of real property |
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Definition
State governments are the primary regulatory entities of the real estate business. State governments establish real estate license laws and qualifications. In addition, state governments have established real estate commissions to administer license laws and oversee activities of licensees. In Oklahoma, the Oklahoma Real Estate Commission (OREC) regulates the real estate industry.
States have the power to levy real estate taxes, but generally pass this power to local government. |
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Term
| Local Regulation of real property |
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Definition
County and local government regulation focuses on land use control, control of improvements, and taxation. Land use regulations and ordinances control how all property within the jurisdiction may be developed, improved, demolished, and managed. County and local governments have the power to zone land, take over land for the public good, issue building permits, and establish the rules for all development projects.
County and local governments, along with school districts and other local jurisdictions, have the power to levy real estate taxes |
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Term
| Zoning laws regulate the following: |
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Definition
The use of the land
Lot sizes
Types of structures permitted
Building heights
Setbacks (how far back from the street an improvement can be built)
Density (the ratio of land area to improved area)
Types of animals that can or cannot be kept on a property (no pet cougars, etc.) |
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Term
| true or false: Violation of zoning regulations renders a title unmarketable. |
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Definition
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Term
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Definition
| Statutory law or statute law is written law passed by a body of legislature |
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Term
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Definition
| Common law is the collective body of law deriving from custom and generally accepted practice in society. |
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Term
| What are the legal tests that determine if an item is a fixture? |
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Definition
Method of annexation (attachment)
Adaptability
Intention
Existence of an agreement |
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Term
| Name the aspects of real property interests that are regulated by government. |
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Definition
Federal: broad standards of usage, natural disaster, environment, discrimination, land description, lending
State: licensing, regional usage, ownership, and inheritance
Local: specific land use control, taxation
Judicial: case law and common law applications to ownership and use |
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