COMPLETE REAL ESTATE PREP-Questions with Correct Answers/
Verified/ 100% Pass
Section 1.1: The Nature of Real Property - ✔️✔️1. What is the nature of real property?
2. What are the physical and economic characteristics of land?
3. What is the nature of personal property?
4. What are the basic elements and principles that govern the real estate market?
5. What are the main types of real estate in the marketplace?
6. What methods are used to describe land?
Leasing - ✔️✔️An agreement whereby one gives up possession of real property, but not title, for a
stipulated period of time
Bundle of Rights 1.1 - ✔️✔️Term for legal rights that accompany real property
1. Right to possess the property
2. Right to control the property within legal limits
3. Right to enjoy the property and use it in any legal manner
4. Right to exclude others from entering or using the property
5. Right to encumber the property, as with a mortgage
6. Right to dispose of the property by sale, will, or other transfer
Real Estate 1.1 - ✔️✔️Refers to the physical land and permanent, man-made improvements on the
land
Real Property 1.1 - ✔️✔️1. The land itself (surface rights)
2. Airspace above the land (air rights)
3. Mineral rights (subsurface rights)
4. Improvements of and to the land
5. Fixtures
6. Fructus Naturales
7. Water rights
,8. Appurtenances
9. Easements
10. Interests, benefits, and ownership rights
Surface Rights 1.1 - ✔️✔️Legal rights to control, occupy, and use the surface area of a parcel of real
estate (the land)
Air Rights 1.1 - ✔️✔️The legal right to control, occupy, and use the airspace above a parcel of real
estate
1. May be sold or leased
2. Laws prohibit the owner from polluting the air
3. Aircraft that have the right to fly over as long as they don't interfere with owner's rights to use
and occupy the land
Subsurface Rights 1.1 - ✔️✔️Right to drill, explore, or dig for minerals or water
Rights may be sold or leased
Improvements 1.1 - ✔️✔️Additions made to property are intended to enhance its value
1. Relationship must exist between a particular parcel of real estate and the character of the
improvement placed on it
Fixtures 1.1 - ✔️✔️Articles that were once personal property but have been affixed to real estate so
as to become real property
Intention is key to classification of fixtures:
1. Method of attachment - Tree planted or fridge
,2. Adaptation (Constructive Annexation) - If object was specifically built for property than it is a
fixture
3. Agreement - Written agreement between two parties always the best route
Fructus Naturales 1.1 - ✔️✔️Tress, bushes, etc. classified as real property
Water Rights 1.1 - ✔️✔️Governed by:
1. Riparian Rights
2. Littoral Rights
3. Prior Appropriation
Riparian Rights 1.1 - ✔️✔️Common law doctrine that gives real property owners whose land
borders a body of moving water a right of reasonable use held in common with other riparian
owners, provided that use does not block the flow of water or cause contamination. *Ownership of
land bordering body of navigable water extends to high water mark*
Land under waterway is owned by the public
Littoral Rights 1.1 - ✔️✔️Right to reasonable use and enjoyment for property owners who *border
a body of water that is not flowing*
Ownership of land bordering a non-navigable body of water extends to the middle of the water
course
Prior Appropriation 1.1 - ✔️✔️Doctrine that *allows an owner who first diverted water for his own
use to continue to do so* even if this is not equitable to the other land owners. Primarily in states
where water is scarce. Usually accomplished by state permits that may be sold
, Appurtenances 1.1 - ✔️✔️All of the *rights, privileges, and improvements that belong to, and pass
with, the transfer of property* but are not necessarily a physical part of the property.
Deed states "Together with all appurtenances"
Easements 1.1 - ✔️✔️Right to use someone else's land for a specific purpose
Section 1.2: Physical and economic characteristics of land - ✔️✔️Real estate market is not a
centrally organized market exchange due to the unique nature and characteristics of its commodity
Land has 3 physical characteristics 1.2 - ✔️✔️1. Immobility - Land is physically immobile.
Consequently, the real estate market is local in nature. Also, value of a piece of real estate is directly
affected by its surroundings
2. Indestructibility - Aside from accretion (water causing land to build up on one parcel subtracting
from the other parcel) or erosion, land cannot be destroyed
3. Uniqueness/Heterogeneity - Land and improvements are not standardized
Land has 5 economic characteristics 1.2 - ✔️✔️1. Scarcity
2. Situs
3. Permanence of Improvements
4. Production
5. Assemblage
Scarcity 1.2 - ✔️✔️There is a limited supply of land
Permanence of improvements 1.2 - ✔️✔️Permanence of improvements, combined with the
immobility of land, makes the *real estate market less flexible than other markets*. Investments in
and improvements to land tend to be long term so the real estate market is slow to respond to
changes in supply
Verified/ 100% Pass
Section 1.1: The Nature of Real Property - ✔️✔️1. What is the nature of real property?
2. What are the physical and economic characteristics of land?
3. What is the nature of personal property?
4. What are the basic elements and principles that govern the real estate market?
5. What are the main types of real estate in the marketplace?
6. What methods are used to describe land?
Leasing - ✔️✔️An agreement whereby one gives up possession of real property, but not title, for a
stipulated period of time
Bundle of Rights 1.1 - ✔️✔️Term for legal rights that accompany real property
1. Right to possess the property
2. Right to control the property within legal limits
3. Right to enjoy the property and use it in any legal manner
4. Right to exclude others from entering or using the property
5. Right to encumber the property, as with a mortgage
6. Right to dispose of the property by sale, will, or other transfer
Real Estate 1.1 - ✔️✔️Refers to the physical land and permanent, man-made improvements on the
land
Real Property 1.1 - ✔️✔️1. The land itself (surface rights)
2. Airspace above the land (air rights)
3. Mineral rights (subsurface rights)
4. Improvements of and to the land
5. Fixtures
6. Fructus Naturales
7. Water rights
,8. Appurtenances
9. Easements
10. Interests, benefits, and ownership rights
Surface Rights 1.1 - ✔️✔️Legal rights to control, occupy, and use the surface area of a parcel of real
estate (the land)
Air Rights 1.1 - ✔️✔️The legal right to control, occupy, and use the airspace above a parcel of real
estate
1. May be sold or leased
2. Laws prohibit the owner from polluting the air
3. Aircraft that have the right to fly over as long as they don't interfere with owner's rights to use
and occupy the land
Subsurface Rights 1.1 - ✔️✔️Right to drill, explore, or dig for minerals or water
Rights may be sold or leased
Improvements 1.1 - ✔️✔️Additions made to property are intended to enhance its value
1. Relationship must exist between a particular parcel of real estate and the character of the
improvement placed on it
Fixtures 1.1 - ✔️✔️Articles that were once personal property but have been affixed to real estate so
as to become real property
Intention is key to classification of fixtures:
1. Method of attachment - Tree planted or fridge
,2. Adaptation (Constructive Annexation) - If object was specifically built for property than it is a
fixture
3. Agreement - Written agreement between two parties always the best route
Fructus Naturales 1.1 - ✔️✔️Tress, bushes, etc. classified as real property
Water Rights 1.1 - ✔️✔️Governed by:
1. Riparian Rights
2. Littoral Rights
3. Prior Appropriation
Riparian Rights 1.1 - ✔️✔️Common law doctrine that gives real property owners whose land
borders a body of moving water a right of reasonable use held in common with other riparian
owners, provided that use does not block the flow of water or cause contamination. *Ownership of
land bordering body of navigable water extends to high water mark*
Land under waterway is owned by the public
Littoral Rights 1.1 - ✔️✔️Right to reasonable use and enjoyment for property owners who *border
a body of water that is not flowing*
Ownership of land bordering a non-navigable body of water extends to the middle of the water
course
Prior Appropriation 1.1 - ✔️✔️Doctrine that *allows an owner who first diverted water for his own
use to continue to do so* even if this is not equitable to the other land owners. Primarily in states
where water is scarce. Usually accomplished by state permits that may be sold
, Appurtenances 1.1 - ✔️✔️All of the *rights, privileges, and improvements that belong to, and pass
with, the transfer of property* but are not necessarily a physical part of the property.
Deed states "Together with all appurtenances"
Easements 1.1 - ✔️✔️Right to use someone else's land for a specific purpose
Section 1.2: Physical and economic characteristics of land - ✔️✔️Real estate market is not a
centrally organized market exchange due to the unique nature and characteristics of its commodity
Land has 3 physical characteristics 1.2 - ✔️✔️1. Immobility - Land is physically immobile.
Consequently, the real estate market is local in nature. Also, value of a piece of real estate is directly
affected by its surroundings
2. Indestructibility - Aside from accretion (water causing land to build up on one parcel subtracting
from the other parcel) or erosion, land cannot be destroyed
3. Uniqueness/Heterogeneity - Land and improvements are not standardized
Land has 5 economic characteristics 1.2 - ✔️✔️1. Scarcity
2. Situs
3. Permanence of Improvements
4. Production
5. Assemblage
Scarcity 1.2 - ✔️✔️There is a limited supply of land
Permanence of improvements 1.2 - ✔️✔️Permanence of improvements, combined with the
immobility of land, makes the *real estate market less flexible than other markets*. Investments in
and improvements to land tend to be long term so the real estate market is slow to respond to
changes in supply
