N Real Estate Final Exam
Chapters covered on the final:2,4, 7,8,9,15,12,13,14,18,19
All formulas are in this study guide (examples of how to use those formulas are
in the slides)
Tip for success: Use the search bar to look up basic
concepts and phrases (this is an extremely long word
document and personally helps me navigate through the
information)
Chapter 2 (Real Property and Rights)
I. Real Property: a bundle of rights
A. What are rights?
i. Claims that the government is obligated to enforce
1. Derived from the constitution
ii. Non-revocable
1. But can be limited
ii. Enduring
1. Not limited to the memory of owners or others
2. Cannot be nullified by other persons or by government
B. Personal rights v. Property rights
i. Property rights
1. Exclusive possession
2. Enjoyment of the use or benefit: use, collect rents, harvest
3. Freedom to dispose as one pleases (within the limits
of safety): sell, convert, rebuild, etc.
B. Real v. Personal property
i. Real property: rights in land and its permanent structures
1. Surface of the earth and improvements
2. Air, up to reserved air space or tallest structure
3. Beneath the earth as far as technology allows: Minerals,
oil and gas, water
ii. Personal property: all other property
1. Personal and household goods
2. Intellectual property
B. Fixtures
i. Fixture: real property that formerly was personal property
ii. Rules for determining when something becomes a fixture:
1. Manner of attachment
2. Character of the article and manner of adaptation:
custom screens or storm windows, church pews, custom designed
furniture
ii. Intention of the parties
1
, 1. Customary assumptions of the realm
2
, 2. Example: kitchen appliances in a single-family residence
v. appliances in an apartment
ii. Relation of the parties
1. Variant of rule of intention
2. Trade fixtures (personal property)
3. Fences and other agricultural improvements
4. Items installed by tenant in a residence
B. Importance of fixtures
i. In every real estate transfer the question of fixtures should be addressed
ii. Fixtures are real estate automatically go with the real property
iii. It's important to identify possible fixtures
iv. Agreement between the buyer and seller
B. Real property interests
i. Interest: any rights in real property
ii. Estate: a real property interest that includes the right of
exclusive possession
iii. Nonpossessory interests:
1. Easements
2. Restrictive covenants
3. Liens
II. Ownership (freehold) estate
A. Estates of indefinite length
B. Fee simple absolute- all possible rights
C. Fee simple conditional- all rights, but revocable if specific condition is violated
D. Life estate with remainder interest
i. Ordinary life estate- created by the owner
ii. Remainder interest must be named
iii. Legal life estate- imposed by law (Community property or spousal rights)
II. Modern Leasehold interests
A. Tenancy for years
i. For a specific period of time (few days to decades)
ii. Must be written if for more than one year
iii. Written lease contract governs entirely
B. Periodic tenancy
i. No definite length of time
ii. Like a month to month that automatically renews
iii. State law governs notice of termination
1. 60 day notice to terminate
B. Model Residential Landlord- Tenant Act
i. Establishes a more equitable relationship between landlords and tenants
II. Non-Possessory interests in land
A. Easements: the right to use land for a specific and limited purpose
i. Easement appurtenant: rights of use a (dominant) parcel of land
"enjoys" over an adjacent (servient) parcel
ii. Affirmative easements
1. Driveways or access right-of-way
3
, 2. Sewer line
3. Drainage
4. Common wall
ii. "runs with the land": rights and obligations are inseparable from
the parcels involved
iii. Easement in Gross ("Commercial Easements")
1. Right to use land, unrelated to any other parcel
a. Electrical lines
b. Build a roadway or railway
c. Lay a pipeline, power line, or cable
d. Run an irrigation ditch
e. Place and maintain a billboard or
communications tower
f. Conservation easement
2. Transferable separately from land title or ownership
3. No dominant parcel- only servient parcels
ii. License: similar to an easement in gross, but conveys permission rather
than right
1. Revocable
2. Automatically terminated at the death of the grantor or sale of the land
3. Example is permission to hunt or fish on a property
4. Permission to park vehicle
5. Ticket to an event
B. Liens: an interest in property as security for an obligation
i. Usually a debt
ii. Typically prioritized by date of recordation
iii. General liens: arise from events unrelated to the property
1. Court awarded damages
2. Federal tax liens
ii. Specific liens: arise from ownership and use of the property
1. Mortgage
2. Mechanic's lien
3. Property tax, assessment or CDD lien
B. Restrictive covenants: covenants that impose restrictions on land use
i. Created as conveyance of land to a new owner
ii. Examples
1. Setback lines, height restrictions for structures
2. Min floor area
3. No freestanding structures
4. No chain-link fences
5. No RVs or boats parked in view of street
6. Required architectural view
7. No external antenna, satellite dish or clothesline
8. Required use of professional lawn service
ii. Two methods of creation
1. Restriction in a deed conveying a single parcel of land to a new owner
4
Chapters covered on the final:2,4, 7,8,9,15,12,13,14,18,19
All formulas are in this study guide (examples of how to use those formulas are
in the slides)
Tip for success: Use the search bar to look up basic
concepts and phrases (this is an extremely long word
document and personally helps me navigate through the
information)
Chapter 2 (Real Property and Rights)
I. Real Property: a bundle of rights
A. What are rights?
i. Claims that the government is obligated to enforce
1. Derived from the constitution
ii. Non-revocable
1. But can be limited
ii. Enduring
1. Not limited to the memory of owners or others
2. Cannot be nullified by other persons or by government
B. Personal rights v. Property rights
i. Property rights
1. Exclusive possession
2. Enjoyment of the use or benefit: use, collect rents, harvest
3. Freedom to dispose as one pleases (within the limits
of safety): sell, convert, rebuild, etc.
B. Real v. Personal property
i. Real property: rights in land and its permanent structures
1. Surface of the earth and improvements
2. Air, up to reserved air space or tallest structure
3. Beneath the earth as far as technology allows: Minerals,
oil and gas, water
ii. Personal property: all other property
1. Personal and household goods
2. Intellectual property
B. Fixtures
i. Fixture: real property that formerly was personal property
ii. Rules for determining when something becomes a fixture:
1. Manner of attachment
2. Character of the article and manner of adaptation:
custom screens or storm windows, church pews, custom designed
furniture
ii. Intention of the parties
1
, 1. Customary assumptions of the realm
2
, 2. Example: kitchen appliances in a single-family residence
v. appliances in an apartment
ii. Relation of the parties
1. Variant of rule of intention
2. Trade fixtures (personal property)
3. Fences and other agricultural improvements
4. Items installed by tenant in a residence
B. Importance of fixtures
i. In every real estate transfer the question of fixtures should be addressed
ii. Fixtures are real estate automatically go with the real property
iii. It's important to identify possible fixtures
iv. Agreement between the buyer and seller
B. Real property interests
i. Interest: any rights in real property
ii. Estate: a real property interest that includes the right of
exclusive possession
iii. Nonpossessory interests:
1. Easements
2. Restrictive covenants
3. Liens
II. Ownership (freehold) estate
A. Estates of indefinite length
B. Fee simple absolute- all possible rights
C. Fee simple conditional- all rights, but revocable if specific condition is violated
D. Life estate with remainder interest
i. Ordinary life estate- created by the owner
ii. Remainder interest must be named
iii. Legal life estate- imposed by law (Community property or spousal rights)
II. Modern Leasehold interests
A. Tenancy for years
i. For a specific period of time (few days to decades)
ii. Must be written if for more than one year
iii. Written lease contract governs entirely
B. Periodic tenancy
i. No definite length of time
ii. Like a month to month that automatically renews
iii. State law governs notice of termination
1. 60 day notice to terminate
B. Model Residential Landlord- Tenant Act
i. Establishes a more equitable relationship between landlords and tenants
II. Non-Possessory interests in land
A. Easements: the right to use land for a specific and limited purpose
i. Easement appurtenant: rights of use a (dominant) parcel of land
"enjoys" over an adjacent (servient) parcel
ii. Affirmative easements
1. Driveways or access right-of-way
3
, 2. Sewer line
3. Drainage
4. Common wall
ii. "runs with the land": rights and obligations are inseparable from
the parcels involved
iii. Easement in Gross ("Commercial Easements")
1. Right to use land, unrelated to any other parcel
a. Electrical lines
b. Build a roadway or railway
c. Lay a pipeline, power line, or cable
d. Run an irrigation ditch
e. Place and maintain a billboard or
communications tower
f. Conservation easement
2. Transferable separately from land title or ownership
3. No dominant parcel- only servient parcels
ii. License: similar to an easement in gross, but conveys permission rather
than right
1. Revocable
2. Automatically terminated at the death of the grantor or sale of the land
3. Example is permission to hunt or fish on a property
4. Permission to park vehicle
5. Ticket to an event
B. Liens: an interest in property as security for an obligation
i. Usually a debt
ii. Typically prioritized by date of recordation
iii. General liens: arise from events unrelated to the property
1. Court awarded damages
2. Federal tax liens
ii. Specific liens: arise from ownership and use of the property
1. Mortgage
2. Mechanic's lien
3. Property tax, assessment or CDD lien
B. Restrictive covenants: covenants that impose restrictions on land use
i. Created as conveyance of land to a new owner
ii. Examples
1. Setback lines, height restrictions for structures
2. Min floor area
3. No freestanding structures
4. No chain-link fences
5. No RVs or boats parked in view of street
6. Required architectural view
7. No external antenna, satellite dish or clothesline
8. Required use of professional lawn service
ii. Two methods of creation
1. Restriction in a deed conveying a single parcel of land to a new owner
4
