Property Ownership

The legal test for whether an item is a fixture (real property) includes which of the following factors?

AThe age and value of the item

BMethod of attachment, adaptation to the property, and intention of the parties✓ Correct

CWhether the item is insured

DThe number of times the item has been moved

Explanation

The three primary tests for whether an item is a fixture include: (1) method of attachment (permanently affixed), (2) adaptation (uniquely fitted to the property), and (3) intention of the parties at the time of installation. Intention is generally the most important factor.

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Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Depreciation

A reduction in the value of an improvement (building) over time due to physical deterioration, functional obsolescence, or external factors.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.