Champions Real Estate NATIONAL TEST (chs 1-2) Final Exam with complete solutions

Real Property - Answer- consists of land, improvements, attached to the land, benefits, rights, and ownership interests that go with the land. Appurtenance - Answer- is often used to describe rights, privileges, and improvements that belong to and pass with the land Improvements - Answer- man's additions to the land such as buildings and landscaping Personal property - Answer- is a right or interest in something of a temporary or movable nature and includes anything not classed as real property (chattel or personalty) Bill of Sale - Answer- ownership is transferred with this document Fixture - Answer- an item that was personal property; however, it has been attached in such a way that it has become real property Annexation - Answer- "the process" of attaching a fixture to a property in a way that it becomes real property Severance or "severed" - Answer- "the process" of real property becoming personal property will be described by this Trade Fixtures - Answer- fixtures installed by a tenant in order to carry out a business, and they may be removed from leased property prior to the termination of the lease. If these fixtures are not removed prior to termination of the lease, they become real property and pass to the landlord. Emblements - Answer- crops cultivated annually. even though they are attached to the ground, they are considered the personal property of the farmer who cultivated them. They are not automatically part of the sale of a farm or ranch. Land's 3 physical characteristics: - Answer- 1. Nonhomogeneity 2. Immobility 3. Indestructibility 1. Nonhomogeneity - Answer- no two pieces of land are exactly alike. a more current turn is uniqueness. each piece of land is unique 2. Immobility - Answer- land cannot be moved - a person must go to the land 3. Indestructibility - Answer- durability - it will always be there land's four economic characteristics: - Answer- 1. Scarcity 2. Modification 3. Fixity 4. Situs 1. Scarcity - Answer- in short supply, where demand is great - (a lot in Manhattan is more valuable than a lot in upstate New York). Scarcity is usually based on geographic considerations. 2. Modification - Answer- land use and value are greatly influenced by improvements made by man to land and to surrounding parcels of land. 3. Fixity - Answer- land and buildings and other improvements to land are considered fixed or permanent investments - they are not liquid assets. 4. Situs - Answer- location preference, or location from an economic rather than a geographic standpoint. This can change over time as people change. Legal Description - Answer- this is created and determined by a surveyor. it is a necessary part of a contract or conveyance (deed, listing, sales contract, etc.) in order for that document to be enforceable. (methods: metes and bounds, lot and block, the rectangular survey system) 3 methods of land description: - Answer- 1.) Metes and Bounds 2.) Lot and Block 3.) The rectangular (Government) Survey System 1. metes and bounds description - Answer- use terminal points and angles and always have a p.o.b. (point of beginning). this method uses compass directions, degrees, and minutes. the p.o.b. is also the end. might include the use of street names. *this is the OLDEST and MOST COMMON method of land description.* monuments, permanent surveyor markers, are often the starting point for a metes and bounds description, and can be essential to the accuracy of that description. (monuments can be manmade - an iron pipe, or natural - a stand of timber, an old oak tree, etc.) 2. Lot & Block system (for legal description) - Answer- these descriptions are derived from a recorded map, called a "plat." this is the ***most common description used in residential listing agreements*** 3) Rectangular survey system (for legal description) - Answer- this description takes into consideration base lines, and meridians, townships and sections. Townships and Sections are located in Ranges. One township contains 36 sections. each section contains 640 acres, which is 1 square mile. each acre contains 43,560 square feet. How many square feet are in an acre? - Answer- 43,560 Police Power - Answer- Power given to a municipality to regulate and control the character and use of property for the health, safety, and general welfare of the public. Examples: ZONING Zoning - Answer- this is the most common example of police power. Zoning regulations - Answer- these regulations are used to control land use. R-1 zoning means residential, single family only. Non-conforming use - Answer- a change in zoning may result in this type of use. this use was permissible under former rules, but new rules prohibit it. this use is automatic, no hearing or application process is required. 4 Public and Private Land Use Controls - Encumbrances: (PETE) - Answer- Police Power Eminent Domain Taxation Escheat Variance - Answer- If your property violates zoning, you may request this... Does a variance go with the property when it is sold? - Answer- Yes buffer zone - Answer- an area of land separating one land use from another, such as residential from commercial. example: single family, apartments, retail. the apartments are the buffer zone. Eminent Domain - Answer- the right of government to take private property for public use through the action of condemnation. this is the only time the government must compensate property owners. Inverse condemnation: when an individual forces the government to buy his or her property