Real Property and the LawReal Property and the Law

Land v. Real Estate v. Real PropertyLand v. Real Estate v. Real Property

Land – earth’s surface (down to center of Land – earth’s surface (down to center of earth and up to infinity) and thing’s earth and up to infinity) and thing’s naturallynaturally, permanently attached to it. , permanently attached to it. (trees, rock formations, etc.)(trees, rock formations, etc.)

Real Estate – includes things permanently Real Estate – includes things permanently attached, whether natural or man-made.attached, whether natural or man-made.

Real Property – interests, rights, and Real Property – interests, rights, and benefits included in ownership of land and benefits included in ownership of land and real estate.real estate.

What rights are included?What rights are included?

possessionpossessioncontrolcontrolenjoymentenjoymentexclusionexclusiondispositiondisposition (all within boundaries set by law)(all within boundaries set by law)

Questions . . .Questions . . .

What does it mean to have title to a piece What does it mean to have title to a piece of property?of property?

What document provides evidence of your What document provides evidence of your title to a property?title to a property?

Why would you be concerned that your Why would you be concerned that your ownership extends into the earth?ownership extends into the earth?

What about into the air?What about into the air?

Real Property v. Personal PropertyReal Property v. Personal Property

This is one of the toughest distinctions you This is one of the toughest distinctions you will have to make.will have to make.

Why is it important?Why is it important?Some examplesSome examples

mobile homemobile home

crops and treescrops and trees

air conditionerair conditionerSeverance and AnnexationSeverance and Annexation

What is a fixture?What is a fixture?

Personal property that has been so affixed Personal property that has been so affixed to the land or a building that, by law, it to the land or a building that, by law, it becomes part of the real property.becomes part of the real property.

Legal tests of a fixture:Legal tests of a fixture:

Method of attachment (annexation)Method of attachment (annexation)

AdaptationAdaptation

Agreement (intent of the parties)Agreement (intent of the parties)Trade fixtures Trade fixtures

Characteristics of Real PropertyCharacteristics of Real Property

Economic characteristics:Economic characteristics:scarcityscarcity

improvementsimprovements

permanence of investmentpermanence of investment

locationlocationPhysical characteristicsPhysical characteristics

immobilityimmobility

indestructibilityindestructibility

uniquenessuniqueness

Laws Affecting Real EstateLaws Affecting Real Estate

See book for detailsSee book for detailsReal estate licensees must be very careful Real estate licensees must be very careful

about “practicing law” when working on a about “practicing law” when working on a transaction.transaction.

Also, other people are prohibited from Also, other people are prohibited from acting as a real estate licensee.acting as a real estate licensee.

Note: don’t confuse the terms RealtorNote: don’t confuse the terms Realtor® ®

with that of licensee. with that of licensee.