Principles of Real Estate Ch. 2

  1. land
    the earth's surface extending downward to the center of the core and upward to infinity, including things permanently attached by nature, such as trees and water.
  2. Real Estate
    the earth's surface extending down to the core and upward into space, including all things permanently attached to it by nature or by people.
  3. Real Property
    the earth's surface extending down to the core and upward into space, including all things permanently attached to it by nature or by people, as well as the bundle of rights (interests, benefits, and rights inherent in the ownership of real estate).
  4. lateral severance
    separates subsurface, surface and air rights
  5. surface rights
    the right to use the surface of the earth; does not always control the subsurface or air rights to the property.
  6. Subsurface Rights
    • are the rights to the natural resources below the earth's surface.  oil, minerals.
    • Underground water is considered part of the surface estate. Can sell subsurface rights if owner wished.
  7. Air rights
    the rights to use the air above the land, may also be sold or leased independently of the land; air planes.
  8. Property may be considered either...
    real or personal
  9. Personal Property
    (personalty) moveable (chattel); non-permanent
  10. severance
    changing an item from real estate to personal property; cutting down a tree for wood
  11. Attachment
    changing personal property into real estate; turning wood into deck for house; turning something into permanent.
  12. In Texas, a manufactured home may be considered real estate but only if...
    (a) the owner of the home has elected to treat the home as real property, (b) a certified copy of the "statement of ownership and location" for the home has been filed by the owner in the real property records of the county in which the home is located, and (c) both the Texas Department of Housing and Community Affairs (TDHCA) and the county's chief tax appraiser have been notified of the filing (House Bill 1510, 2011).

    In addition, for an owner to treat a manufactured home as real property, the home must be attached (a) to land owned by the owner of the manufactured home (through a deed or a contract for deed) or (b) to land leased to the owner of the home under a long-term lease.
  13. Owners of manufactured homes are entitled to obtain which tax exemption regardless of whether they have elected to treat the home as real property or personal property
    Homestead tax exemption
  14. Real estate brokers or salespersons have to obtain a special license to sell manufactured homes.
    false, do not need a special license
  15. Difference between modular homes and manufactured? what do they have in common?
    modular homes can't be moved like manufactured homes.  They both are hard to get financing and insurance for and don't depreciate in a good way.
  16. What can affect the insurance of a manufactured home?
  17. Fructus naturals
    fruits of nature; trees, perennial shrubbery, and grasses that do not require annual cultivation.
  18. Emblements or Fructus industriales
    fruits of industry; annual plantings or crops of wheat, corn, vegetables, and fruit; generally considered personal property.
  19. Reservation
    Stated in contract, indicating an interest being retained by the seller, such as a mineral right or an access easement; subsurface right.
  20. Execption
    Stated in contract, indicating a deficiency in the grantor's title, such as a mineral interest held by a previous owner; subsurface right of previous owner.
  21. Fixtures
    • an article that was once personal property but has been so affixed to land or to a building that the law construes it to be part of the real estate.
    • Tests for fixture:
    • -intent
    • -adaption to real estate
    • -method of annexation
  22. annexation (an-ik-say-shuhn)
    the act of adding to something larger
  23. Trade Fixtures
    are personal property if removed on or before the expiration of a lease without damage.
  24. accession
    trade fixtures not removed become the real property of the landlord.
  25. It is cheaper for big companies to tare down old buildings and rebuild than to reuse the old building.
Card Set
Principles of Real Estate Ch. 2
Principles of Real Estate Ch. 2