Certified Residential Appraiser Practice Exam

What is defined as physical land and everything fixed to it?

1. Real Property

2. Real Estate

3. Personal Property

4. Fixture

The correct answer is: Real Estate

The term that defines physical land and everything fixed to it is "Real Estate." This encompasses the land itself as well as any structures, trees, minerals, and other permanent fixtures that are attached to the land. Real estate is a broad category that includes various types of property, such as residential, commercial, and industrial properties. While "Real Property" is often used interchangeably with real estate, it more specifically refers to the legal interests or rights in the property rather than the physical aspects. "Personal Property," on the other hand, refers to movable items not permanently attached to land, like furniture or vehicles. "Fixture" pertains to a specific type of item that was once personal property but has been installed or attached to real estate in such a way that it is now considered part of the real estate. This distinction highlights the encompassing nature of real estate, making it the appropriate choice when defining the physical land and everything fixed to it.