TN Real Estate Exam Practice Questions PROPERTY OWNERSHIP (Affiliate Broker - 7 Items; Broker 6 Items) exam latest update with 100% correct answers

REAL PROPERTY Interests, benefits, and rights that are automatically included in the ownership of real estate. (Real Property) Refer to both the physical property and the rights of ownership, while other states still make the distinction. PERSONAL PROPERTY Personalty. All the property that can be owned and that does not fit the definition of real property. Personal property is movable. Also known as Chattles, and include such tangibles as chairs, tables, clothing, money, bonds, bank accounts. FIXTURES Personal property that has been so attached to land or a building that, by law, it becomes part of the real property. Example: heating systems, elevators, radiators, kitchen cabinets, light fixtures, plumbing. Almost any item that has been added as a permanent part of a building is considered a fixture. LEGAL TESTS OF A FIXTURE Method of annexation, Adaptability of the item for the land's ordinary use, Relationship of the parties, Intention of the person in placing the item on the land, Agreement of the parties. TRADE FUXTURE Property used in the course of business. Owned by a tenant, attached to a rented space or building, and used in conducting a business. (Chattel Fixture) Must be removed on or before the last day the property is rented. Tenant responsible for any damages caused by the removal. If not removed it will become real property of the landlord. ACCESSION Acquiring trade fixtures that have not been moved and becomes the property of the landlord. PHYSICAL CHARACTERISTICS OF LAND Three Physical Characteristics of Land: Immobility, Indestructibility, and Uniqueness (nonhomogeneity) ECONOMIC CHARACTERISTICS OF LAND Four Economic Characteristics of Real Estate: Scarcity, Improvements, Permanence of Investment, and Area Preference or Situs ENCUMBRANCE A type of real estate that does not rise to the level of ownership possession, but a certain degree of control or use of the property. LIEN Charge against property that provides security for a debt for an obligation of the property owner. EASEMENT The right to sue the land of another for a particular purpose EASEMENT APPURTENANT Attached to the ownership of real estate and allows the owner of that property the use of a neighbor's land. Lots must be touching. Right or privilege comes with ownership. EASEMENT IN GROSS An individual or company interest in or right to use someone else's land. Generally terminates on the death of the easement owner. LICENSES A personal privilege to enter the land of another for a specific purpose. Differs from an easement in that it can be terminated or canceled by the owner of the property. ENCROACHMENTS When a building, fence or driveway illegally extends beyond the boundaries of the land of its owner or legal building lines.