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BASIC REAL ESTATE CONCEPTS

Q.1) In real estate the definition of land includes ONLY what is on the surface of the earth and

attached by nature such as trees.

A. True B. False

Q.2) All of these stateents are characteristics of land! All "arcels of land are different# land is

essentially indestructible# and$ land is fi%ed in its location.

A. TrueB. False

Q.3) There are only two &') cate(ories of "ro"erty! &1) eal *ro"erty$ and &') I"ro+ed *ro"erty. A. True

B. False

Q.4) eal estate is defined as land and whate+er is "eranently attached to land by either an or

nature. A. True

B. False

Q.5) eal "ro"erty includes the definition of real estate but adds to that definition the ri(hts and

interests that an owner has in the real estate. A. True

B. False

Q.6) A fi%ture is an ite of real "ro"erty that has been chan(ed into "ersonal "ro"erty as a resultof "eranent attachent to the "ersonal "ro"erty.

A. True

B. False

Q.7) Fi%tures are such an i"ortant "art of a sales transaction that ost a(reeents of sale

ha+e a s"ecial section on fi%tures that ha+e been carefully "re"ared to a+oid anyisre"resentation of what is included in the sale of real estate

A. TrueB. False

Q.8) If a fi%ture is issin( fro the listin( a(reeent and is also issin( fro the a(reeent of

sale$ it would still be bindin( u"on the "arties$ if there was an oral a(reeent as to a s"ecific

fi%ture. A. True

B. False

Q.9) A tree reains real "ro"erty e+en if it is cut into firewood.

A. True

B. False

Q.10) A trade fi%ture is a s"ecial fi%ture that is owned and installed by a business tenant into a

rental unit as a "art of a trade or business. An e%a"le would be a "i,,a o+en needed for a

"i,,a business in a rented store. Because it is considered to be essential to the o"eration of a

business$ it is clasified as "ersonal "ro"erty and is reo+able by the business tenant beforethe lease e%"ires.

A. TrueB. False

ANSWER:

1. B. FALSE - Land includes what is on the surface of the earth and attached bynature such as trees, but it also constitutes everything that is below the surface to

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the center of the earth. That eans all of the inerals, oils, water, or anything elsecontained in the earth.

!. A. T"#E

$. B. FALSE - The two categories are% &1' "eal (ro)erty and &!' (ersonal (ro)erty.

*. A. T"#E

+. A. T"#E

. B. FALSE - A ture is an ite of )ersonal )ro)erty that has been changed intoreal )ro)erty as a result of )eranent attachent to the real )ro)erty.

/. A. T"#E

0. B. FALSE - The eclusion of a ture ust be in writing in the agreeent of sale ifit is to be binding u)on both )arties.

. B. FALSE - A tree re)resents real )ro)erty because it is attached to the land. 2f,however, the tree is cut down into rewood3 it becoes detached through the)rocess of severance.

14. A. T"#E