Basic Real Estate Concepts Quiz!

In real estate the definition of land includes ONLY what is on the surface of the earth and attached by nature such as trees.

All of these statements are characteristics of land: All parcels of land are different; land is essentially indestructible; and, land is fixed in its location.

There are only two (2) categories of property: (1) Real Property, and (2) Improved Property.

Real estate is defined as land and whatever is permanently attached to land by either man or nature.

Real property includes the definition of real estate but adds to that definition the rights and interests that an owner has in the real estate.

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

Fixtures are such an important part of a sales transaction that most agreements of sale have a special section on fixtures that have been carefully prepared to avoid any  misrepresentation of what is included in the sale of real estate

If a fixture is missing from the listing agreement and is also missing from the agreement of sale, it would still be binding upon the parties, if there was an oral agreement as to a specific fixture.

A tree remains real property even if it is cut into firewood.

A trade fixture is a special fixture that is owned and installed by a business tenant into a rental unit as a part of a trade or business. An example would be a pizza oven needed for a pizza business in a rented store. Because it is considered to be essential to the operation of a business, it is clasified as personal property and is removable by the business tenant before the lease expires.