California Real Estate Practice Exam

Real property can also be described as?

1. Location and improvements

2. The bundle of rights

3. Land and fixtures

4. Personal property

The correct answer is: The bundle of rights

Real property, also known as real estate, is a legal term that refers to land, the structures on it, and the natural resources associated with it. One way to conceptualize real property is as a bundle of rights, meaning the legally recognized interests one can have in real estate. This includes the right to occupy, use, and transfer ownership of the property. The other options are incorrect because although they can be components of real property, they do not fully encompass all aspects of real property. Option A is too limited as it only mentions location and improvements, while real property also includes land and natural resources. Option C is also too limited as it only includes land and fixtures, which are not the only components of real property. Option D is incorrect as it refers to personal property, which is not considered real estate as it is moveable and not permanently attached to land.