NCSO ACSA EXAM PREP: LATEST KEY QUESTIONS AND ANSWERS FOR AN A+

NCSO ACSA EXAM PREP: LATEST KEY QUESTIONS AND ANSWERS FOR AN A+ Describe possession (a real property right) Right to occupy the property Describe control (a real property right) Right to determine interest in the property for others Describe enjoyment (a real property right) Right to possess the property without harassment or interference Describe exclusion (a real property right) Right to refuse other interests in your property Describe disposition (a real property right) Right to determine how, when, and whether the property is to be sold, leased, mortgaged, or transferred Real property stays, while personal property goes (unless the buyers and sellers negotiate otherwise) if the item is permanently attached, it becomes real property. Otherwise it's personal property, also called chattel Chattel an item of personal, movable property It can be tricky to identify real and personal property in garages. Free-standing shelving is personal. If you attach it to the wall with some brackets, it may be considered real property. Items considered personal property TV and electronics Rug and table Sofa Curtains-not custom made (Had these been custom draperies, they would've been considered real property) Above ground pool Free-standing children's outdoor play set (If the play set is movable, it's considered personal property. If the play set is set in concrete, it's real property) Items considered real property Garage remote controls (Although garage remote controls aren't attached, they go with an attached item (the garage door opener itself) and should stay. Door knocker engraved with your last name (A door knocker is attached to the house. It's real property, even if it has your name on it) Light fixtures Window Blinds Built in fireplace Custom made curtains Bathroom towel rods (The bathroom towel rods are attached to the house) Fixture it's part of the real property being conveyed in a real estate transaction and should remain Ask yourself whether the item can be removed without causing damage to the property to which it's attached. If it can't, it's considered real property. Use the acronym MARIA to help you remember these tests, which are: What are the five tests to determine if an item is a fixture and part of the real estate? Method of annexation Adaptability of item to land's use Relationship of the parties Intention in placing item on land Agreement of the parties Method of Annexation How permanent is the method of attachment? Can the item be removed without causing damage to the surrounding property, or can any damage caused by the removal be easily repaired? (also known as attachment refers to whether the item is attached to the property and how permanent the attachment is) Adaptability of Item to Land's Use Adaptation is related to how the item is situated or adapted to the real property. (items that fall under this category are garage door openers or the remote controls of other built-in features that are permanently attached to the property) Relationship of the Parties In general, the courts tend to favor a tenant's take on an item over the landlord's, and a buyer over a seller. Intention in Placing Item on Land A person's original intentions may change over time, or an item that was intended to be temporary may end up physically attached to the property, which can change the item from temporary to permanent. Example: Let's say that Mrs. Goldman's bookshelves were originally free-standing, but after her two grandchildren became toddlers who knocked over anything that wasn't nailed down, she had her son attach the bookshelves to the wall. Voilà, just like that, those bookcases went from personal property to real property. Agreement of the Parties Agreement is the simplest and first test: If the parties have agreed that an item will stay or go, then that agreement meets the legal test. To be safe, the agreement should be in writing. Bill of Sale A document used to transfer ownership of personal property. Refrigerators, washer, dryer that are staying with the house, they should not only be listed in the sale contract but may need to be conveyed via a bill of sale. This eliminates any confusion between the parties. Trade Fixtures Personal property used in a business and can be removed by the lessee when the lease terminates. Trade Fixtures in a Commercial Transaction According to the law, commercial tenants may remove their trade fixtures when their lease ends and they move out. But three conditions apply. The trade fixture must be: Essential for the tenant's business operations Detachable without damaging the property (or repairable)