Real Estate Exam 3 Study Guide Chapter 18 Physical Rights surface rights rights to improvement on and to the land subsurface rights rights to minerals oils and gas air rights rights to air space to the height of the tallest man made improvements public fly over rights rights above private air rights Real Property realty refers to land and anything permanently affixed to the land Personal Property personally refers to all other tangible property Fixtures refers to something that was once personal property but has become a part of some real property Tests to determine fixtures intent test annexation test adaptation test relationship of the parties test Trade Fixtures are personal property consisting of display counters cabinets mobile partitions and the like in commercial buildings such as shopping centers and office buildings Legal Rights of Real Estate Ownership The right of exclusive possession and control means that owners have the legal right to control entry to their property to collect damages in the event of trespass and to use the property as collateral for a loan The right of quiet enjoyment means that owners have a legal claim to their property without unfounded disturbances from those claiming defects in the title The right of disposition allows owners to transfer ownership to others Estates in Real Estate Estate the degree of legal interest a party has in real property Estates in Severalty when only one party owns real estate The owners interest is severed from other owners interests Concurrent Estates involve real property ownership by more than the owner Freehold estates held for an indefinite duration home ownership Non freehold Estates have a duration set by private contract apartment rental Freehold Estates 1 Fee simple absolute estate in land form of freehold ownership 2 Determinable fee 3 Fee simple subject to condition subsequent 4 Ordinary life estates can live in house as long as you are living 5 Legal life estate homestead homestead acre in city 160 acres out of city limits 6 Legal life estate dower and curtesy husbands entitlement to estate that his wife possessed when she died Nonfreehold Estates 1 Estate for years definite beginning and end and automatically terminates on a day 2 Periodic Tenancy doesn t terminate at a specific date Renting weekly 3 Tenancy at Will agreement where a tenant occupies property with the consent of the owner but without an agreement that specifies a definite rental period or the regular payment of rent 4 Tenancy at Sufferance after the lease has expired but before the landlord has asked the tenant to vacate the premises tenant is still bound to the terms of the original lease Community Property anything acquired after marriage recognizes the husband and wife as equal partners in certain community property property that is not acquired separate from the marriage Each have interest in property acquired during the marriage Multiple Choice 1 The Physical rights to real estate generally include all of the following except easement rights the rights associated with these are legal rights 2 States which follow the traditional ownership in place concept recognize the ownership of oil and gas as part of land ownership 3 Which of the following is not a test of the court used to resolving disputes about fixtures The Test of Expectation the 4 tests used to determine whether an item is a fixture or not are the annexation intent adaptation and relationship of the parties tests 4 An owner s legal right to control entry to real property and to use the property as collateral for loans is part of an owner s right of 5 An estate having a duration set by private contract is known as a exclusive possession non freehold estate 6 The future interest in an ordinary life estate is called the remainder vests in the grantor of the ordinary life estate 7 exists when rights of possession transfer with oral instead of written agreemenst Tenancies at will 8 If one co owner dies and that owner s rights become divided among the surviving partners rather than passed to the heirs of the deceased the ownership interest has a right of survivorship 9 A form of ownership of real estate with fee simple ownership of individual units and ownership as tenants in common of the common areas is termed 10 The right of government to enforce zoning and growth control measures come under the government s authority known as a condominium police power T F Questions corrected All True 1 The rights of the utility company to use a particular part of an individual s property for the installation of their utility lines is an example of an easement in gross 2 If a 20 foot wide easement crosses another property allowing the Smiths to gain access to their otherwise landlocked property the Smiths have what is termed a dominant estate the property crossed is the servient estate 3 If Bill verbally gives Eddie the right to fish in Bill s pond the right is termed a license 4 The physical rights of real estate owners theoretically extend to the center of the earth in the shape of an inverted pyramid 5 Some states recognize that oil and gas are personal business property and cannot be transferred with land ownership transfers 6 Riparian land describes land adjacent to non navigable bodies of water and the landowners rights to use the water constitute their riparian rights 7 Some states hold that the first party to use a body of water for some beneficial economic purpose obtains a superior rights to the water use 8 Trade fixtures are not fixtures in the legal sense and not real estate 9 A party with a determinable fee estate receives for examples through sale gift or will an interest in real property that lasts for as long as some stipulation remains satisfied 10 Joint tenancy includes the right of ownership Chapter 19 Jurisdiction s Budget and Tax Rate Tax rate is established as a percentage of its budgeted expenditures to its tax base Tax base aggregate taxable value of all properties in a community or jurisdiction minus the total value of all property tax exemptions Tax Rate Formula R T E B I O V T V X R T tax rate E B community s budgeted expenditures I O total income from other sources V T total assessed value of all properties in the community V X total value of all property exemptions in the community tax rates are general stated in mills or as a millage rate tax dollars 1000 of value Effective Tax Rate Tax burden analysis can be conducted to evaluate the tax consistency of a