MN Course 1 Exam Prep: Property Types, Title, and Environmental Issues

Manufactured vs. modular home - Manufactured: A home that is built according to HUD construction standards. Updated term for a mobile home or house trailer. Modular: Units that are constructed in factories off-site according to state building codes. Once assembled on the home site, considered to be real property. Land - Property that includes the surface of the earth, down to the center of the earth, and upward infinitely into space. It also includes any items permanently attached to the land, such as trees and water. Real estate - Land, plus all things permanently attached to it, naturally or artificially Real property - Real estate, plus the interest, benefits and rights included with ownership Personal property - Anything that's not real property; Also known as chattel Bundle of rights (5) - The interests, benefits, and rights granted with real property ownership. 1. Possession (right to occupy) 2. Enjoyment (right to possess without interference or harassment) 3. Exclusion (right to refuse other interests) 4. Control (right to determine others' interests) 5. Disposition (right to decide when to transfer ownership) Fixture vs Trade fixture - Fixture: An item that's permanently attached to real property Trade fixture: A piece of equipment or other item that is on or attached to the real estate which is used in a trade or business, which may be removed by the business owner as a personal item Annexation (MARIA acronym) - The conversion of personal property into real property: Method of annexation (attachment) Adaptability of item to land's use Relationship of the parties Intention in placing item on land Agreement of the parties Opposite is severance: Converting real property to personal property by removing it Characteristics of real property (4 economic, 3 physical) - Economic: 1. Scarcity 2. Improvements 3. Permanence of investment 4. Location or area preference Physical: 1. Immobility 2. Indestructibility 3. Uniqueness Littoral vs. Riparian rights - Littoral: Rights of bordering owners to the use of a stationary body of water, such as a lake or sea Riparian: Rights of bordering owners to the use of a flowing body of water, such as a river or creek Legal description - A method of identifying a property in written words that allows for an unambiguous interpretation of a property's boundaries and location. Freehold vs Leasehold estate - Freehold: Ownership is for an indeterminate length of time Leasehold: Grants possession, but not title, to the owner, and is for a limited period of time Fee simple vs. Qualified fee - Fee simple: An inheritable estate with absolute ownership Qualified fee: A fee simple estate that carries a qualification, so that ownership may revert to the grantor if a specified event occurs or a condition is not met. Also called a defeasible fee. Life estates - Ownership, possession, and control for someone's lifetime. May be created pur autre vie (for another's lifetime). Remainderman holds fee simple estate at end of life estate. If no remainderman is named, property reverts to original owner. A grantor may reserve a life estate for himself when conveying a property. Types of leasehold estates (3) - Estate for years: Of definite duration, terminates automatically, and is inheritable