TREC- Real Estate Exam Prep- CH1 Questions and Answers 100% Pass

TREC- Real Estate Exam Prep- CH1 Questions and Answers 100% Pass Title insurance policy: - agrees to compensate or reimburse the insured against any losses sustained as a result of defects in the title Real Property - consists of land, improvements attached to the land, benefits, rights, and ownership interest that go with the land Appurtenance - used to describe rights, privileges or improvements that belong to an pass with the land Improvements - man's additions to the land such as buildings and landscaping Mineral, air and water rights are all considered - real property Mineral rights - consist of rights to subsurface land and profits Air rights - consist of rights to use air above your land (can be sold or leased, or transferred by easement- elevated highways); air rights can be taxed separately. 2Brittie Donald, All Rights Reserved © 2025 Riparian Rights - rights to river/stream that borders property. Flow CANNOT be interrupted. State has right to refuse/grant water rights. Owned to vegetation line (non-navigable water) Littoral Rights - rights to lake/ocean. Water cannot be contaminated. State can grant/refuse water rights (due to scarcity or shortage of water); owned to vegetation line (non-navigable water) Navigable Water - Always owned by State- usually all rivers, creeks, streams, etc. Prior Appropriation - theory of water law based on the idea that "first in time is first in right" Land's 3 physical characteristics: - 1. Nonhomogeneity 2. Immobility 3. Indestructibility 3 Water Rights: - 1. Riparian 2. Littoral 3. Appropriative Nonhomogeneity - no two pieces are exactly the same- "uniqueness" Immobility - land cannot be moved- a person must go to the land 3Brittie Donald, All Rights Reserved © 2025 Indestructibility - durability; it will always be there- cannot be destroyed Land has 4 economic characteristics: - 1. Scarcity 2. Modification 3. Fixity 4. Situs Scarcity - in short supply - a lot in Manhattan will be more expensive than in upstate new york Modification - land use and value are greatly influenced by improvements made by man to land surrounding parcels of land Fixity - land and buildings and other improvements to land are considered fixed or permanent investments- they are not l