1|Page
Aceable Agent - Level 1 - Property
Ownership - Chapters 1-4 Questions
and Answers
What is land? - ✔✔Land refers to more than just a tract of earth.
Land not only includes the natural resources on the surface of the land, but the minerals
below the surface and the air above the surface.
The official definition is:
The surface of the earth, including all permanently attached natural features, extending
downwards to the center of the earth and upwards towards infinity.
When a person acquires land, they acquire all that is above and below as well.
What is real estate? - ✔✔Real estate is the land PLUS all improvements made by man or
nature.
Katelyn Whitman© 2025, All Rights Reserved.
,2|Page
Examples of said improvements include buildings, sheds, fences, sewers, etc.
Real estate is also referred to as realty.
What constitutes an improvement? - ✔✔An improvement is any non-natural structure
built on or affixed to land.
Buildings fences, decks, and roads are all examples of improvements.
Improvements must be permanently attached to land, and are therefore considered real
estate.
What is land without improvements? - ✔✔Exactly that; just land.
For example, an empty field with no buildings on it is just land.
To describe the land and improvements as one package, we use the term "real estate"
Katelyn Whitman© 2025, All Rights Reserved.
,3|Page
What is real property? - ✔✔While real estate refers to the land and the improvements
on it, real property refers to all that PLUS the set of rights associated with real estate
ownership.
However, it's important to note that there is technically a distinction between real estate
and real property, but it's not THAT important.
In fact, it's probably alright to use the terms interchangeably.
What are people REALLY buying when they buy real estate? - ✔✔An asset, or an item
of value.
They make the purchase of this asset in hopes that it will increase in value, earning
them equity.
What is equity? - ✔✔Equity is the portion of the property's total value owned outright
by the holder to title, equal to the difference between the market value and all
outstanding debts on the property.
In other words, equity is all the value of a property above what an owner owes their
lender or other debt holders.
Katelyn Whitman© 2025, All Rights Reserved.
, 4|Page
For example, if I put a $20,000 down payment on a $200,000 house, I, therefore, have
10% equity in that house.
What is a deed? - ✔✔It is a written instrument or legal agreement that conveys real
property.
The deed gives the deed-holder legal title, or complete legal ownership of real property
and the bundle of rights associated.
What are you doing when you "assume title"? - ✔✔You are officially assuming
ownership of a property.
What is the most basic title transfer method? - ✔✔Using a deed.
A transfer of title by deed, at the most basic level, is how real property moves from
owner to owner.
What are all of the things that turn real estate into real property? - ✔✔They are all of the
things that you can do with the land that you own, and are usually referred to as the
bundle of rights.
What is the right of exclusion? - ✔✔The right to tell trespassers (or anyone, to be honest)
to get off of your land.
Katelyn Whitman© 2025, All Rights Reserved.
Aceable Agent - Level 1 - Property
Ownership - Chapters 1-4 Questions
and Answers
What is land? - ✔✔Land refers to more than just a tract of earth.
Land not only includes the natural resources on the surface of the land, but the minerals
below the surface and the air above the surface.
The official definition is:
The surface of the earth, including all permanently attached natural features, extending
downwards to the center of the earth and upwards towards infinity.
When a person acquires land, they acquire all that is above and below as well.
What is real estate? - ✔✔Real estate is the land PLUS all improvements made by man or
nature.
Katelyn Whitman© 2025, All Rights Reserved.
,2|Page
Examples of said improvements include buildings, sheds, fences, sewers, etc.
Real estate is also referred to as realty.
What constitutes an improvement? - ✔✔An improvement is any non-natural structure
built on or affixed to land.
Buildings fences, decks, and roads are all examples of improvements.
Improvements must be permanently attached to land, and are therefore considered real
estate.
What is land without improvements? - ✔✔Exactly that; just land.
For example, an empty field with no buildings on it is just land.
To describe the land and improvements as one package, we use the term "real estate"
Katelyn Whitman© 2025, All Rights Reserved.
,3|Page
What is real property? - ✔✔While real estate refers to the land and the improvements
on it, real property refers to all that PLUS the set of rights associated with real estate
ownership.
However, it's important to note that there is technically a distinction between real estate
and real property, but it's not THAT important.
In fact, it's probably alright to use the terms interchangeably.
What are people REALLY buying when they buy real estate? - ✔✔An asset, or an item
of value.
They make the purchase of this asset in hopes that it will increase in value, earning
them equity.
What is equity? - ✔✔Equity is the portion of the property's total value owned outright
by the holder to title, equal to the difference between the market value and all
outstanding debts on the property.
In other words, equity is all the value of a property above what an owner owes their
lender or other debt holders.
Katelyn Whitman© 2025, All Rights Reserved.
, 4|Page
For example, if I put a $20,000 down payment on a $200,000 house, I, therefore, have
10% equity in that house.
What is a deed? - ✔✔It is a written instrument or legal agreement that conveys real
property.
The deed gives the deed-holder legal title, or complete legal ownership of real property
and the bundle of rights associated.
What are you doing when you "assume title"? - ✔✔You are officially assuming
ownership of a property.
What is the most basic title transfer method? - ✔✔Using a deed.
A transfer of title by deed, at the most basic level, is how real property moves from
owner to owner.
What are all of the things that turn real estate into real property? - ✔✔They are all of the
things that you can do with the land that you own, and are usually referred to as the
bundle of rights.
What is the right of exclusion? - ✔✔The right to tell trespassers (or anyone, to be honest)
to get off of your land.
Katelyn Whitman© 2025, All Rights Reserved.
