Wisconsin Real Estate Sales Practice Exam

Which type of property is automatically included in the purchase of real estate?

1. Personal property

2. Real property

3. Intangible property

4. Inherited property

The correct answer is: Real property

The correct choice is real property because it inherently includes the land and anything permanently affixed to it, such as buildings, structures, and fixtures. When a buyer purchases real estate, the transaction typically encompasses not only the land itself but also any improvements and rights associated with that property, as long as they are not specifically excluded in the purchase agreement. In contrast, personal property refers to movable items that are not affixed to the land, such as furniture or vehicles, which are not automatically included unless specified in the contract. Intangible property, such as stocks or intellectual property rights, is also not included in the real estate transaction. Inherited property pertains to assets received through inheritance and is not automatically part of a real estate purchase unless it specifically involves ownership transfer of that property. Thus, when purchasing real estate, the inclusion of real property is a fundamental aspect of the transaction, ensuring that the buyer gains ownership of the entirety of the physical location and what is attached to it.