FINC 371 LATEST EVALUATION 2026 TEST
QUESTIONS AND ANSWERS SURE A+
✔✔Ranch/Agricultural Real Estate - ✔✔1. Recreational
2. Land
3. Cattle Production
4. Farmland
5. Wildlife Refuge
6. Wetlands
- Mitigation Credits
✔✔4 Factors of Production in Economics - ✔✔1. *Land*
2. Labor
3. Capital
4. Entrepreneurship
✔✔3 Economic Attributes of Land - ✔✔1. Durable
2. Finite
3. Useful
✔✔Real Estate - ✔✔- Is the physical land and appurtenances (improvements or
buildings) affixed to the land
- Immobile and Tangible
- Natural part of land
- Building and site
,- All permanent buildings attachments (fixtures)
- Attachments above and below ground
✔✔Real Property - ✔✔- All interests, benefits, and rights inherent in the ownership of
the real estate
- Estate is a right or interest in real estate
- "Bundle of Rights" - Right to use, sell, lease, enter, give away, etc.
- When transferred, a written document must be prepared
✔✔Title - ✔✔Ownership rights to real property
(Actual Ownership)
✔✔Deed - ✔✔Document used to convey right from one property to another
(Document showing ownership)
✔✔Lease - ✔✔Conveys the rights of use and possession of the real property under the
agreed upon terms
(Ownership is not transferred)
✔✔Personal Property (aka "Chattel") - ✔✔Movable items or property that are not
permantely affixed to , or part of, the real estate
✔✔Fixture - ✔✔An article that was once personal property, but has since been installed
or attached to the land or building in a rather permanent manner
- Considered Real Estate
✔✔Trade Fixtures (aka "Chattel Fixture") - ✔✔An article that is owned and attached to a
rented space or building by a tenant and used in conducting business
✔✔Testing for Fixture Status (3) - ✔✔1. Test of Intent of the Parties
2. Test of Attachment
3. Test of Adapability
✔✔Test of Intent of the Parties - ✔✔Intention of the party who attached the item
* Best to have it written in Real Estate Contract *
✔✔Test of Attachment (2) - ✔✔1. Manner in which item is affixed
2. Can it be removed without serious injury to real estate?
✔✔Test of Adaptability (2) - ✔✔1. Character of item and its adaption to the real estate
2. Would its removal alter the usefulness of the real estate?
✔✔Air Rights - ✔✔Real property rights to the space above the earth's surface
- Pie Shaped
- Transferable
, ✔✔Mineral Rights - ✔✔Real property rights to the minerals and other useful materials
that exist because the surface
- Transferable
✔✔Water Rights - ✔✔Right to withdraw water from the land
✔✔Rights to Navigable Bodies of Water - ✔✔- The owner whose land joins the body of
water generally owns up to the high water mark
- Owner is also called "littoral proprietor"
- Government typically owns land underneath the water
✔✔Rights to Non-navigable Bodies of Water (2) - ✔✔1. Riparian Rights Doctrine
2. Prior Appropriation Doctrine
✔✔Riparian Rights Doctrine - ✔✔- Dominates the Eastern US
- All owners whose land underlies or borders the water have equal rights to the water
- Can use all water needed, as long as not depriving other users
✔✔Prior Appropriation Doctrine - ✔✔- Popular West of the Mississippi (Arid Land)
- First person to use the water for some beneficial economic purpose has the right to
use all the water they desire
- "First Come, First Served"
- Rule of Capture, can deprive other users
✔✔Underground or Subterranean Stream - ✔✔- Water that flows in a defined channel
- Apply same principles used if the body of water existed on the surface
✔✔Percolating Water - ✔✔- Water in pockets not clearly located
- Landowner may use water beneath land for industrial, agricultural, or other purposes
necessary, unless depletes adjoining neighbors
✔✔Estates in Land - ✔✔Bundles of ownership interest in real property
✔✔2 Basic Types of Estates - ✔✔1. Freehold
- Ownership
- Grantor = Seller
- Grantee = Buyer
2. Leasehold
- Right to use and possess
- Lessor = Owner
- Lessee = Renter
✔✔Freehold Estates (2) - ✔✔1. Present Interests:
QUESTIONS AND ANSWERS SURE A+
✔✔Ranch/Agricultural Real Estate - ✔✔1. Recreational
2. Land
3. Cattle Production
4. Farmland
5. Wildlife Refuge
6. Wetlands
- Mitigation Credits
✔✔4 Factors of Production in Economics - ✔✔1. *Land*
2. Labor
3. Capital
4. Entrepreneurship
✔✔3 Economic Attributes of Land - ✔✔1. Durable
2. Finite
3. Useful
✔✔Real Estate - ✔✔- Is the physical land and appurtenances (improvements or
buildings) affixed to the land
- Immobile and Tangible
- Natural part of land
- Building and site
,- All permanent buildings attachments (fixtures)
- Attachments above and below ground
✔✔Real Property - ✔✔- All interests, benefits, and rights inherent in the ownership of
the real estate
- Estate is a right or interest in real estate
- "Bundle of Rights" - Right to use, sell, lease, enter, give away, etc.
- When transferred, a written document must be prepared
✔✔Title - ✔✔Ownership rights to real property
(Actual Ownership)
✔✔Deed - ✔✔Document used to convey right from one property to another
(Document showing ownership)
✔✔Lease - ✔✔Conveys the rights of use and possession of the real property under the
agreed upon terms
(Ownership is not transferred)
✔✔Personal Property (aka "Chattel") - ✔✔Movable items or property that are not
permantely affixed to , or part of, the real estate
✔✔Fixture - ✔✔An article that was once personal property, but has since been installed
or attached to the land or building in a rather permanent manner
- Considered Real Estate
✔✔Trade Fixtures (aka "Chattel Fixture") - ✔✔An article that is owned and attached to a
rented space or building by a tenant and used in conducting business
✔✔Testing for Fixture Status (3) - ✔✔1. Test of Intent of the Parties
2. Test of Attachment
3. Test of Adapability
✔✔Test of Intent of the Parties - ✔✔Intention of the party who attached the item
* Best to have it written in Real Estate Contract *
✔✔Test of Attachment (2) - ✔✔1. Manner in which item is affixed
2. Can it be removed without serious injury to real estate?
✔✔Test of Adaptability (2) - ✔✔1. Character of item and its adaption to the real estate
2. Would its removal alter the usefulness of the real estate?
✔✔Air Rights - ✔✔Real property rights to the space above the earth's surface
- Pie Shaped
- Transferable
, ✔✔Mineral Rights - ✔✔Real property rights to the minerals and other useful materials
that exist because the surface
- Transferable
✔✔Water Rights - ✔✔Right to withdraw water from the land
✔✔Rights to Navigable Bodies of Water - ✔✔- The owner whose land joins the body of
water generally owns up to the high water mark
- Owner is also called "littoral proprietor"
- Government typically owns land underneath the water
✔✔Rights to Non-navigable Bodies of Water (2) - ✔✔1. Riparian Rights Doctrine
2. Prior Appropriation Doctrine
✔✔Riparian Rights Doctrine - ✔✔- Dominates the Eastern US
- All owners whose land underlies or borders the water have equal rights to the water
- Can use all water needed, as long as not depriving other users
✔✔Prior Appropriation Doctrine - ✔✔- Popular West of the Mississippi (Arid Land)
- First person to use the water for some beneficial economic purpose has the right to
use all the water they desire
- "First Come, First Served"
- Rule of Capture, can deprive other users
✔✔Underground or Subterranean Stream - ✔✔- Water that flows in a defined channel
- Apply same principles used if the body of water existed on the surface
✔✔Percolating Water - ✔✔- Water in pockets not clearly located
- Landowner may use water beneath land for industrial, agricultural, or other purposes
necessary, unless depletes adjoining neighbors
✔✔Estates in Land - ✔✔Bundles of ownership interest in real property
✔✔2 Basic Types of Estates - ✔✔1. Freehold
- Ownership
- Grantor = Seller
- Grantee = Buyer
2. Leasehold
- Right to use and possess
- Lessor = Owner
- Lessee = Renter
✔✔Freehold Estates (2) - ✔✔1. Present Interests:
