Chapter One

Concepts of Real Estate 

Land

Land is immovable, solid material of the earth in whatever natural form  it may be found, whether soil, rock or other substance, including things permanently attached by nature, such as water, soil, and plants.

 Land Characteristics

- Immobility

- Indestructibility

- Nonhomogeneity

includes the definition of land as well as all natural and

man-made improvements which are permanently attached or affixed to the land.

the interests, benefits, and rights which are included with the ownership of land as well as the physical rights of ownership.

 - Possession

 - Control

 - Quiet enjoyment

 - Disposition

Physical Rights of Ownership of Land

Ownership of land includes:

1. surface rights

2. sub-surface rights

3. air rights

4. water rights

Land bordering a natural watercourse, such as a lake, river, or stream.

note: If land is navigable, land rights extend only to the water's edge.

A non-navigable waterway owns the land under the water to the exact center of the waterway.

Land on the bank or shore of a sea, ocean or large lake.

Rights extend only to the mean high water mark.

Personal Property - Chattels

Personal Property

Personal property is movable. It includes all property except land and improvements.

note: Title to real property is transferred by deed. Personal property is transferred by bill of sale.

Chattels are tangible (corporeal) personal property. i.e. clothing, furniture, and vehicles.

Intangible ( incorporeal) property is has no intrinsic value or material being. i.e. stocks, bonds, and checks.

A fixture is a chattel, which has become permanently attached to real estate.

Ownership of real property includes everything that is permanently affixed or annexed to the land.

1. The manner of attachment.

2. The intention of the parties.

3. The type and adaptability to the real estate.

4. The relation of the parties.

Trade fixtures are items of personal property necessary to carry on a business.

Concepts of Ownership

Feudal System

All land owned by the King. The King's subjects only had the right to use the land but not own it.

Recognizes the rights of individuals to own land subject to no proprietary control of the government. This is the system of land ownership we have today.

1. Taxation: Government has the right to tax property to receive revenue to finance necessary public expenditures.

2. Escheat: The right of the state to take title to property of a deceased who dies intestate (without a will) and with no heirs.

3. Eminent Domain: The right of the state to take property for public purposes upon the payment of just compensation.

4. Police Power: Government has the right to restrict the use of land to preserve order and to protect the public health and safety. i.e. Rent control, zoning laws, building codes, and environmental protection laws. 

1. Lease

2. Mortgage

3. Easement

4. License

Tenements are property rights of a permanent nature, which relate to the land and pass with the conveyance of title. May be tangible i.e. buildings or fixtures or intangible i.e. easement over a neighbor's land.

Appurtenances are rights, privileges and improvements that belong to and pass with the transfer of title.

Hereditaments are real (corporeal) and personal(incorporeal) property, which pass to heirs upon the death of the owner.