ROCKWELL REAL ESTATE UPDATED EXAM SCRIPT
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Intention test - ✔✔The intention test carries a lot of weight in a lawsuit.
It refers to the original intention of the person who installed the item that's now in
dispute.
The judge will look for evidence indicating whether the item was installed with the
intention of making it a permanent part of the structure.
If so, the judge will usually rule that the item is a fixture.
✔✔Relationship test - ✔✔The relationship test can be seen as another way of
establishing the intention of the person who installed the item, or arranged to have it
installed. It refers to that person's relationship to the real property at the time of the
installation.
Did he own the property, or was he just a tenant?
Under the relationship test, it's assumed that tenants intend to take their belongings with
them when they move, even if the items were attached to the realty during the tenancy.
✔✔trade fixtures - ✔✔Equipment and other items that a commercial tenant installs to
carry on a business
But even though they're called fixtures, trade fixtures aren't considered part of the real
property, no matter how they're attached.
✔✔Fixtures vs Personal Property - ✔✔In a real estate transaction, items that are legally
considered fixtures—part of the real property—will pass to the buyer by deed, unless
the parties specifically agree to exclude them from the sale.
The items that are legally classified as personal property aren't part of the real estate,
so the deed won't automatically transfer their ownership to the buyer.
✔✔Fixtures - ✔✔In a real estate transaction, items that are legally considered fixtures—
part of the real property—will pass to the buyer by deed, unless the parties specifically
agree to exclude them from the sale.
✔✔Personal Property - ✔✔The items that are legally classified as personal property
aren't part of the real estate, so the deed won't automatically transfer their ownership to
the buyer.
✔✔estate - ✔✔An estate (a possessory interest) is the right to possess and have
exclusive use of real property, either now or in the future. If someone's interest in a
piece of real property doesn't allow exclusive use and possession of the property, it's
not an estate.
, ✔✔interest - ✔✔in real property, is a right concerning the property or a claim against it.
✔✔lien - ✔✔(such as a mortgage) is an interest in property, but it's not an estate.
✔✔Two Types of Estates - ✔✔Freehold and Leasehold
✔✔Two types of Freehold Estates - ✔✔Fee Simple and Life
✔✔Littoral Property - ✔✔Property bordering a lake or an ocean
✔✔Riparian Property - ✔✔Property bordering a stream or a river
✔✔possessory interests - ✔✔Include the right to exclusive use and possession of the
property. Possessory interests are also called estates.
✔✔fee simple absolute - ✔✔new owner is free to do whatever he or she wishes with the
property with no special limitations
✔✔fee simple qualified, also known as a qualified fee estate, a fee simple defeasible, or
a fee simple conditional. - ✔✔When a seller wants to control the future use of the land
after selling or giving it to someone else. In this case, they transfer the property with a
condition or qualification attached to the title.
The deed states that the new owner will own the property until or unless a specified act
or event takes place.
✔✔fee simple determinable - ✔✔if the act or event prohibited in the deed occurs, title
automatically reverts to the person who imposed the limitation, or to his heirs. This is
known as a possibility of reverter.
✔✔fee simple subject to condition subsequent - ✔✔if the prohibited act or event occurs,
the person who imposed the limitation (or his heirs) will regain title only if he takes legal
action to do so.
✔✔Freehold estates - ✔✔Include fee simple estates and life estates.
In contrast to someone with a leasehold estate, someone with a freehold estate has title
to the property.
The two main categories of freehold estates are fee simple estates and life estates.
✔✔fee simple estate - ✔✔is the highest and most complete form of real property
ownership.
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Intention test - ✔✔The intention test carries a lot of weight in a lawsuit.
It refers to the original intention of the person who installed the item that's now in
dispute.
The judge will look for evidence indicating whether the item was installed with the
intention of making it a permanent part of the structure.
If so, the judge will usually rule that the item is a fixture.
✔✔Relationship test - ✔✔The relationship test can be seen as another way of
establishing the intention of the person who installed the item, or arranged to have it
installed. It refers to that person's relationship to the real property at the time of the
installation.
Did he own the property, or was he just a tenant?
Under the relationship test, it's assumed that tenants intend to take their belongings with
them when they move, even if the items were attached to the realty during the tenancy.
✔✔trade fixtures - ✔✔Equipment and other items that a commercial tenant installs to
carry on a business
But even though they're called fixtures, trade fixtures aren't considered part of the real
property, no matter how they're attached.
✔✔Fixtures vs Personal Property - ✔✔In a real estate transaction, items that are legally
considered fixtures—part of the real property—will pass to the buyer by deed, unless
the parties specifically agree to exclude them from the sale.
The items that are legally classified as personal property aren't part of the real estate,
so the deed won't automatically transfer their ownership to the buyer.
✔✔Fixtures - ✔✔In a real estate transaction, items that are legally considered fixtures—
part of the real property—will pass to the buyer by deed, unless the parties specifically
agree to exclude them from the sale.
✔✔Personal Property - ✔✔The items that are legally classified as personal property
aren't part of the real estate, so the deed won't automatically transfer their ownership to
the buyer.
✔✔estate - ✔✔An estate (a possessory interest) is the right to possess and have
exclusive use of real property, either now or in the future. If someone's interest in a
piece of real property doesn't allow exclusive use and possession of the property, it's
not an estate.
, ✔✔interest - ✔✔in real property, is a right concerning the property or a claim against it.
✔✔lien - ✔✔(such as a mortgage) is an interest in property, but it's not an estate.
✔✔Two Types of Estates - ✔✔Freehold and Leasehold
✔✔Two types of Freehold Estates - ✔✔Fee Simple and Life
✔✔Littoral Property - ✔✔Property bordering a lake or an ocean
✔✔Riparian Property - ✔✔Property bordering a stream or a river
✔✔possessory interests - ✔✔Include the right to exclusive use and possession of the
property. Possessory interests are also called estates.
✔✔fee simple absolute - ✔✔new owner is free to do whatever he or she wishes with the
property with no special limitations
✔✔fee simple qualified, also known as a qualified fee estate, a fee simple defeasible, or
a fee simple conditional. - ✔✔When a seller wants to control the future use of the land
after selling or giving it to someone else. In this case, they transfer the property with a
condition or qualification attached to the title.
The deed states that the new owner will own the property until or unless a specified act
or event takes place.
✔✔fee simple determinable - ✔✔if the act or event prohibited in the deed occurs, title
automatically reverts to the person who imposed the limitation, or to his heirs. This is
known as a possibility of reverter.
✔✔fee simple subject to condition subsequent - ✔✔if the prohibited act or event occurs,
the person who imposed the limitation (or his heirs) will regain title only if he takes legal
action to do so.
✔✔Freehold estates - ✔✔Include fee simple estates and life estates.
In contrast to someone with a leasehold estate, someone with a freehold estate has title
to the property.
The two main categories of freehold estates are fee simple estates and life estates.
✔✔fee simple estate - ✔✔is the highest and most complete form of real property
ownership.
