MN Course 1 Exam Prep: Property Types,
Title, and Environmental Issues
Manufactured vs. modular home - ANS -Manufactured: A home that is built according to
HUD construction standards. Updated term for a mobile home or house trailer.
Modular: Units that are constructed in factories off-site according to state building
codes. Once assembled on the home site, considered to be real property.
Land - ANS -Property that includes the surface of the earth, down to the center of the
earth, and upward infinitely into space. It also includes any items permanently attached
to the land, such as trees and water.
Real estate - ANS -Land, plus all things permanently attached to it, naturally or artificially
Real property - ANS -Real estate, plus the interest, benefits and rights included with
ownership
Personal property - ANS -Anything that's not real property; Also known as chattel
Bundle of rights (5) - ANS -The interests, benefits, and rights granted with real property
ownership.
1. Possession (right to occupy)
2. Enjoyment (right to possess without interference or harassment)
3. Exclusion (right to refuse other interests)
4. Control (right to determine others' interests)
5. Disposition (right to decide when to transfer ownership)
Fixture vs Trade fixture - ANS -Fixture: An item that's permanently attached to real
property
Trade fixture: A piece of equipment or other item that is on or attached to the real estate
which is used in a trade or business, which may be removed by the business owner as a
personal item
, Annexation (MARIA acronym) - ANS -The conversion of personal property into real
property:
Method of annexation (attachment)
Adaptability of item to land's use
Relationship of the parties
Intention in placing item on land
Agreement of the parties
Opposite is severance: Converting real property to personal property by removing it
Characteristics of real property (4 economic, 3 physical) - ANS -Economic:
1. Scarcity
2. Improvements
3. Permanence of investment
4. Location or area preference
Physical:
1. Immobility
2. Indestructibility
3. Uniqueness
Littoral vs. Riparian rights - ANS -Littoral: Rights of bordering owners to the use of a
stationary body of water, such as a lake or sea
Riparian: Rights of bordering owners to the use of a flowing body of water, such as a
river or creek
Legal description - ANS -A method of identifying a property in written words that allows
for an unambiguous interpretation of a property's boundaries and location.
Freehold vs Leasehold estate - ANS -Freehold: Ownership is for an indeterminate length
of time
Leasehold: Grants possession, but not title, to the owner, and is for a limited period of
time
Fee simple vs. Qualified fee - ANS -Fee simple: An inheritable estate with absolute
ownership
Qualified fee: A fee simple estate that carries a qualification, so that ownership may
revert to the grantor if a specified event occurs or a condition is not met. Also called a
defeasible fee.
Title, and Environmental Issues
Manufactured vs. modular home - ANS -Manufactured: A home that is built according to
HUD construction standards. Updated term for a mobile home or house trailer.
Modular: Units that are constructed in factories off-site according to state building
codes. Once assembled on the home site, considered to be real property.
Land - ANS -Property that includes the surface of the earth, down to the center of the
earth, and upward infinitely into space. It also includes any items permanently attached
to the land, such as trees and water.
Real estate - ANS -Land, plus all things permanently attached to it, naturally or artificially
Real property - ANS -Real estate, plus the interest, benefits and rights included with
ownership
Personal property - ANS -Anything that's not real property; Also known as chattel
Bundle of rights (5) - ANS -The interests, benefits, and rights granted with real property
ownership.
1. Possession (right to occupy)
2. Enjoyment (right to possess without interference or harassment)
3. Exclusion (right to refuse other interests)
4. Control (right to determine others' interests)
5. Disposition (right to decide when to transfer ownership)
Fixture vs Trade fixture - ANS -Fixture: An item that's permanently attached to real
property
Trade fixture: A piece of equipment or other item that is on or attached to the real estate
which is used in a trade or business, which may be removed by the business owner as a
personal item
, Annexation (MARIA acronym) - ANS -The conversion of personal property into real
property:
Method of annexation (attachment)
Adaptability of item to land's use
Relationship of the parties
Intention in placing item on land
Agreement of the parties
Opposite is severance: Converting real property to personal property by removing it
Characteristics of real property (4 economic, 3 physical) - ANS -Economic:
1. Scarcity
2. Improvements
3. Permanence of investment
4. Location or area preference
Physical:
1. Immobility
2. Indestructibility
3. Uniqueness
Littoral vs. Riparian rights - ANS -Littoral: Rights of bordering owners to the use of a
stationary body of water, such as a lake or sea
Riparian: Rights of bordering owners to the use of a flowing body of water, such as a
river or creek
Legal description - ANS -A method of identifying a property in written words that allows
for an unambiguous interpretation of a property's boundaries and location.
Freehold vs Leasehold estate - ANS -Freehold: Ownership is for an indeterminate length
of time
Leasehold: Grants possession, but not title, to the owner, and is for a limited period of
time
Fee simple vs. Qualified fee - ANS -Fee simple: An inheritable estate with absolute
ownership
Qualified fee: A fee simple estate that carries a qualification, so that ownership may
revert to the grantor if a specified event occurs or a condition is not met. Also called a
defeasible fee.
