Basic Real Estate Concepts Quiz!

Explanation
Land includes what is on the surface of the earth and attached by nature such as trees, but it also constitutes everything that is below the surface to the center of the earth. That means all of the minerals, oils, water, or anything else contained in the earth.

Explanation
Land is a unique asset, and all parcels of land have distinct characteristics that differentiate them from one another. Land is essentially indestructible, meaning that it cannot be destroyed or depleted like other resources. Additionally, land is fixed in its location, meaning that it cannot be moved or relocated. Therefore, all of these statements accurately describe the characteristics of land, making the answer true.

Explanation
The two categories are: (1) Real Property and (2) Personal Property.

Explanation
Real estate refers to land and any structures or improvements that are permanently attached to it, whether by human intervention or natural means. This includes buildings, fences, and other fixtures that cannot be easily moved or detached from the land. Therefore, the statement that real estate is defined as land and whatever is permanently attached to it is correct.

Explanation
Real property refers to land and any permanent structures attached to it, such as buildings. This definition also includes the rights and interests that an owner has in the real estate, such as the right to use, sell, or lease the property. Therefore, the statement that real property includes the definition of real estate but also encompasses the rights and interests of the owner is true.

Explanation
A fixture is an item of personal property that has been changed into real property as a result of permanent attachment to the real property.

Explanation
The statement is true because fixtures are indeed an important part of a sales transaction. They are items that are permanently attached to the property and are typically included in the sale of real estate. To ensure transparency and avoid any misrepresentation, agreements of sale often include a specific section dedicated to fixtures, outlining what is included in the sale. This helps both the buyer and seller have a clear understanding of what is being sold and what is not.

Explanation
The exclusion of a fixture must be in writing in the agreement of sale if it is to be binding upon both parties.

Explanation
A tree represents real property because it is attached to the land. If, however, the tree is cut down into firewood; it becomes detached through the process of severance.

Explanation
A trade fixture is a fixture that is owned and installed by a business tenant in a rental unit for the purpose of conducting their trade or business. It is considered essential to the operation of the business and is classified as personal property. As personal property, the trade fixture can be removed by the business tenant before the lease expires. Therefore, the statement "A trade fixture is removable by the business tenant before the lease expires" is true.