Property Ownership-Real Estate
Real property - correct answer ✔✔the land and anything permanently affixed to it; includes the
interests, benefits, and rights inherent in the ownership of real estate
Personal property - correct answer ✔✔movable objects (chattels) that do not fit into the definition of
real property; conveyed by bill of sale
Fixture - correct answer ✔✔an item of personal property that has been converted to real property by
being permanently affixed to the land or building. Fixtures can be either attached or annexed
severance - correct answer ✔✔A fixture that is permitted to be and is detached from the land or the
building would revert to personal property
Trade fixture - correct answer ✔✔an item installed by a commercial tenant according to the terms of a
lease and removable by the tenant before the expiration of the lease—personal property. If not
removed, the trade fixture becomes real property of the building owner by accession
Immobile - correct answer ✔✔(Physical) the geographic location of a parcel of land is fixed—can never
be changed
Indestructible - correct answer ✔✔(Physical) the long-term nature of improvements plus permanence of
land tends to create stability in land development.
Unique or nonhomogeneous - correct answer ✔✔(Physical) all parcels differ geographically and each
parcel has its own location
Scarcity - correct answer ✔✔(Economic) although there is a substantial amount of unused land, supply
in a given location or of a specific quality can be limited.
, Improvements - correct answer ✔✔(Economic) placement of an improvement on a parcel of land affects
value and use of neighboring parcels of land
Permanence of investment - correct answer ✔✔(Economic) improvements represent a large fixed
investment; some, such as drainage and sewerage, cannot be dismantled or removed economically.
Area preference, or situs - correct answer ✔✔(Economic) this refers to people's choices and desires for a
given area.
Metes and bounds - correct answer ✔✔to locate a property boundary requires two permanent
reference markers (PRM). Then, the boundary is measured from a specific point of beginning (POB) and
proceeds around the boundaries using reference to linear measurements and directions.Boundaries may
be established on the basis of actual distance between monuments (fixed objects).
A boundary must return to the point of beginning (POB) so that the land described is fully enclosed.
Rectangular (government) survey - correct answer ✔✔Based on measurements from base lines and
principal meridians. Base lines run east and west; principal meridians run north and south. Designed to
set up checkerboard pattern of identical squares over specific area.
Subdivision plats - correct answer ✔✔Location of an individual parcel is indicated on a map of the
subdivision, which is divided into numbered blocks and lots.
Each parcel is referred to a lot, block, subdivision name, city, and state.
Street address - correct answer ✔✔an informal reference; too unreliable for a legal description because
you cannot walk the boundaries.
Usage of legal property descriptions - correct answer ✔✔in order for a claim to any property to have any
value it must be accompanied by a verifiable and legal property description.
Encumbrances - correct answer ✔✔A charge, claim, or liability that attaches to and is binding on real
estate
Real property - correct answer ✔✔the land and anything permanently affixed to it; includes the
interests, benefits, and rights inherent in the ownership of real estate
Personal property - correct answer ✔✔movable objects (chattels) that do not fit into the definition of
real property; conveyed by bill of sale
Fixture - correct answer ✔✔an item of personal property that has been converted to real property by
being permanently affixed to the land or building. Fixtures can be either attached or annexed
severance - correct answer ✔✔A fixture that is permitted to be and is detached from the land or the
building would revert to personal property
Trade fixture - correct answer ✔✔an item installed by a commercial tenant according to the terms of a
lease and removable by the tenant before the expiration of the lease—personal property. If not
removed, the trade fixture becomes real property of the building owner by accession
Immobile - correct answer ✔✔(Physical) the geographic location of a parcel of land is fixed—can never
be changed
Indestructible - correct answer ✔✔(Physical) the long-term nature of improvements plus permanence of
land tends to create stability in land development.
Unique or nonhomogeneous - correct answer ✔✔(Physical) all parcels differ geographically and each
parcel has its own location
Scarcity - correct answer ✔✔(Economic) although there is a substantial amount of unused land, supply
in a given location or of a specific quality can be limited.
, Improvements - correct answer ✔✔(Economic) placement of an improvement on a parcel of land affects
value and use of neighboring parcels of land
Permanence of investment - correct answer ✔✔(Economic) improvements represent a large fixed
investment; some, such as drainage and sewerage, cannot be dismantled or removed economically.
Area preference, or situs - correct answer ✔✔(Economic) this refers to people's choices and desires for a
given area.
Metes and bounds - correct answer ✔✔to locate a property boundary requires two permanent
reference markers (PRM). Then, the boundary is measured from a specific point of beginning (POB) and
proceeds around the boundaries using reference to linear measurements and directions.Boundaries may
be established on the basis of actual distance between monuments (fixed objects).
A boundary must return to the point of beginning (POB) so that the land described is fully enclosed.
Rectangular (government) survey - correct answer ✔✔Based on measurements from base lines and
principal meridians. Base lines run east and west; principal meridians run north and south. Designed to
set up checkerboard pattern of identical squares over specific area.
Subdivision plats - correct answer ✔✔Location of an individual parcel is indicated on a map of the
subdivision, which is divided into numbered blocks and lots.
Each parcel is referred to a lot, block, subdivision name, city, and state.
Street address - correct answer ✔✔an informal reference; too unreliable for a legal description because
you cannot walk the boundaries.
Usage of legal property descriptions - correct answer ✔✔in order for a claim to any property to have any
value it must be accompanied by a verifiable and legal property description.
Encumbrances - correct answer ✔✔A charge, claim, or liability that attaches to and is binding on real
estate
