Real Property is one of the foundational topics on the NY Real Estate Salesperson Exam. Questions focus on the difference between real and personal property, ownership types, and how government powers limit property rights.
Real property includes land and anything permanently attached to it. Personal property (chattel) is everything movable. Fixtures start as personal property but become real property once attached. The exam uses the MARIA test to determine whether an item is a fixture: Method of attachment, Adaptability, Relationship of the parties, Intent, and Agreement.
Property ownership comes with five rights: possess, use, enjoy, exclude, and dispose. These rights can be separated and transferred independently. Understanding which rights are limited by government powers is a frequent exam topic.
Four government powers override private property rights. Police power (zoning, building codes) requires no compensation. Eminent domain (condemnation) requires just compensation. Taxation funds government services. Escheat transfers property to the state when an owner dies without heirs or a will.
Fee simple absolute is the highest form of ownership with no conditions. Fee simple defeasible has conditions that can trigger loss of ownership. A life estate lasts for someone's lifetime. The life tenant must maintain the property and cannot commit waste.
1. The MARIA test is used to determine whether an item is:
MARIA (Method of attachment, Adaptability, Relationship of parties, Intent, Agreement) is used to determine whether an attached item has become a fixture and is therefore real property.
2. A fee simple defeasible estate:
A fee simple defeasible includes a condition. If the condition is violated, ownership may revert to the grantor or pass to a third party. Classic example: 'To the city, so long as the land is used as a park.'
3. Which of the following is included in the 'bundle of rights' that comes with property ownership?
The bundle of rights includes: possess, use, enjoy, exclude, and dispose. The right to exclude means the owner can keep others off the property.
Adverse Possession
A legal doctrine allowing a person to acquire title to land by openly occupying it for a statutory period without the owner's permission.
Bundle of Rights
The collection of legal rights associated with property ownership: the right to possess, use, transfer, encumber, and exclude.
Condemnation
The legal process by which the government exercises eminent domain to take private property for public use.
Deed Restriction (Restrictive Covenant)
A private limitation written into a deed that controls how the property may be used by future owners.
Easement
A legal right to use another person's land for a specific, limited purpose.
Eminent Domain
The government's power to take private property for public use, with just compensation paid to the owner.
Encroachment
A physical intrusion of a structure or improvement onto an adjacent property or public right-of-way.
Encumbrance
Any claim, lien, charge, or liability attached to a property that affects its use or transfer.
Study Real Property in depth
Unlock the full study module with explanations, flashcards, and Carl, your AI tutor who can answer any question about this topic.
Start studying free →No credit card required
click for a haiku!