Unit 1: Land, Real Property, and Real Estate

Define Land

Land is the Earth’s surface extending downward to the center of the earth and upward to infinity, including permanently attached natural objects.

Define Real Estate

Real estate includes the definition of land plus all things permanently attached to

it naturally or artificially.

What’s another name for artificial attachment?

Improvements

Define Real Property

includes real estate plus the interests, benefits, and rights that come with real estate ownership

What are those interests, benefits and rights that comes with Real Estate ownership? and explain each

1. Possession: The right to occupy the property

2. Enjoyment: The right to use the property in any legal way the owner desires

3. Exclusion: The right to refuse others entry to, or use of, the property

4. Control: The right to determine how the property will be used by the owner, or by others (similar to enjoyment, but extends to other parties).

5. Disposition: The right to dispose of (by sale, lien, easement, Wlease, etc.) any interest in the property

What’s the main difference between real property and personal property?

Real property has PERMANENT attachments aka fixtures. On the other hand personal property has LOSE (Movable) attachments.

What are the 2 common exceptions of Real Property?

Commercial and agriculture

What are commercial aka and Explain the exemption of commercial

Commercial are aka trade fixtures.

Trade fixtures are equipment placed on or attached to real estate that the renter uses in their trade or business

define emblements

emblements are crops produced through cultivation belonging to the tenant during and after harvest.

To avoid confusion in Real property and Personal Property. what must be done?

The seller must state in the agreement the list of items they wish to keep.

What are the names of the 5 test to determine the property type? and explain each one.

• Method of annexation or Method of attachment - how permanently is the object attached?

• Adaptability of item to land's use - Is the object adopted to the environment?

• Relationship of the parties - What’s the relationship between the object and the seller?

• Intention in placing them on land - what was the seller intention in placing this object?

• Agreement of the parties - Did the seller list its items they’re going to keep in the agreement?

Another word for agreement is?

Bill of Sale

What are the 2 classes of fruits? and explain each.

• Fruits of nature  are plants that don’t require annual cultivation. These include trees, perennial shrubs, and some grasses. Fruits of nature are considered real estate.

• Fruits of industry are plants that require annual cultivation. These include crops of fruits, vegetables, wheat, and corn. Fruits of industry are also known as emblements and are considered personal property, even though they’re a part of the soil.

What’s the difference between severance and annexation?

Severance is when an item that was real property becomes personal property

Annexation is the opposite of severance