Real Estate Salesperson Exam (National Portion) Real vs. Personal Property and Legal Descriptions Summary

A metes and bounds description starts at a point of beginning, follows directions (bounds) and distances (metes) around the parcel, and must return to the point of beginning to close.

Wrong choices

• Lot and block: Lot and block refers to a lot number on a recorded plat map.
• Rectangular (government) survey: The rectangular survey uses townships, ranges, and sections.
• Street address: A street address is not a legal description.

A standard township is 6 miles on each side. It is divided into one-mile-square sections, so it has 6 × 6 = 36 sections. Each section contains 640 acres.

Wrong choices

• 24: A township is 6 miles by 6 miles, which makes 36 one-mile sections.
• 640: 640 is the number of acres in one section, not the number of sections.
• 16: 16 is too few; a township has 6 rows of 6 sections.

One section is one square mile and contains 640 acres. A quarter section is 160 acres. Remember that one acre is 43,560 square feet.

Wrong choices

• 43,560 acres: 43,560 is the number of square feet in one acre.
• 36 acres: 36 is the number of sections in a township.
• 160 acres: 160 acres is a quarter section.

Work from the end of the description back to the section:

1. One section = 640 acres.
2. SW 1/4 = 640 ÷ 4 = 160 acres.
3. NE 1/4 of that = 160 ÷ 4 = 40 acres.
4. Check: 640 × 1/4 × 1/4 = 40.

Wrong choices

• 160 acres: 160 acres is a full quarter section; this description takes a quarter of a quarter.
• 80 acres: 80 acres would be a half of a quarter section.
• 10 acres: 10 acres would be a quarter of a quarter of a quarter section.

A fixture is an item that was personal property but has been attached to the land or building so that it becomes part of the real property. A dishwasher built into the cabinets and connected to water and power is a typical fixture and normally goes with the house when it is sold.

Wrong choices

• A sofa in the living room: Furniture that is not attached is personal property.
• A riding lawn mower kept in the garage: Movable equipment is personal property.
• A framed painting hanging on a nail: Items hung on a nail can be removed easily and are generally personal property.

Emblements are crops that need yearly planting and work, such as corn or wheat. They are treated as personal property of the person who planted them, so a tenant farmer may usually come back to harvest them even after the lease ends.

Wrong choices

• Fixtures: Fixtures are items attached to the land or a building, not annual crops.
• Easements: An easement is a right to use another person's land.
• Appurtenances: Appurtenances are rights that go with the land, such as an easement, not the farmer's annual crops.

The three physical characteristics of land are immobility, indestructibility, and non-homogeneity (uniqueness). Because every parcel has a different location, no two are exactly the same. This is why courts can order specific performance of a real estate contract.

Wrong choices

• Immobility: Immobility means land cannot be moved.
• Indestructibility: Indestructibility means land itself cannot be destroyed.
• Scarcity: Scarcity is an economic characteristic about limited supply.

Trade fixtures are items a tenant attaches for use in a trade or business. They stay the tenant's personal property and can be removed before the lease ends, as long as the tenant repairs any damage. Items left behind after the lease ends may become the landlord's property.

Wrong choices

• Real property that now belongs to the landlord: Trade fixtures are an exception; they remain the tenant's personal property.
• Emblements that belong to the tenant only until harvest: Emblements are crops, not business equipment.
• Encroachments that must be left in place: An encroachment is an improvement that crosses onto a neighbor's land.

A chandelier wired into the ceiling is normally a fixture and goes with the house. Because the written agreement of the parties controls, the seller should exclude it in the purchase contract, or remove and replace it before the house is shown.

Wrong choices

• Say nothing, because light fixtures always stay with the seller: Wired-in light fixtures are generally real property and would transfer with the house.
• Tell the buyer verbally at the showing: Agreements about real property should be in writing in the contract to be enforceable and clear.
• Remove it after closing: After closing, the chandelier belongs to the buyer unless the contract excluded it.

The three accepted methods are metes and bounds, lot and block (recorded plat), and the rectangular (government) survey. A street address or mailing address can change and does not exactly locate the boundaries, so it is not a legal description.

Wrong choices

• A metes and bounds description: Metes and bounds is a recognized legal description.
• A lot and block number on a recorded plat: Lot and block is a recognized legal description.
• A rectangular survey description: The government survey system is a recognized legal description.