Real Property & Ownership Rights: Key Concepts for Land Law

Real Property

Land plus anything permanently attached (immovable).

Personal Property (Chattel)

Movable property not permanently attached to land.

Fixtures

Personal property that becomes real property when attached (e.g., ceiling fan).

Trade Fixtures

Tenant-installed business fixtures removable before lease ends.

Emblements

Annual crops belonging to the tenant, even after lease ends.

Attachment

Process of converting personal property into real property.

Severance

Process of converting real property into personal property.

Bill of Sale

Written document transferring ownership of personal property.

Scarcity

Limited supply of land increases value.

Modification/Improvement

Land value affected by changes and improvements.

Permanence of Investment (Fixity)

Land improvements are long-term and fixed.

Area Preference (Situs)

Value based on location preference ("location, location, location").

Immobility

Land cannot be moved.

Indestructibility

Land is durable and cannot be destroyed.

Non-homogeneity (Uniqueness)

No two parcels of land are identical.

Metes and Bounds

Land described using directions, distances, and landmarks.

Rectangular (Government) Survey

Land divided by townships and ranges based on meridians and baselines.

Lot and Block

Land described by subdivision plat maps.

Survey

Measurement verifying property boundaries and land description.

Police Power

Government's right to regulate property for health, safety, and welfare.

Eminent Domain

Government's right to take property for public use with compensation.

Taxation

Government's power to raise revenue through property taxes.

Escheat

Property reverts to the state when an owner dies without heirs.

Zoning Ordinances

Local land use regulations dividing areas by use.

Covenants, Conditions, and Restrictions (CC&Rs)

Private rules set by HOAs or developers.

Homeowners Association (HOA)

Organization enforcing CC&Rs in a community.

Easement

Legal right to use another's land for a specific purpose.

License

Temporary, revocable right to use property.

Encroachment

Unauthorized physical intrusion on another's property.

Forms of Ownership

Methods of holding title (sole, joint, tenants in common, etc.).

Freehold Estate

Ownership interest in land without a fixed duration.

Fee Simple Absolute

Complete ownership with maximum rights.

Fee Simple Defeasible

Ownership with conditions that can cause loss of title.

Determinable Fee

Ownership ends automatically if condition violated.

Fee Simple Condition Subsequent

Ownership continues unless legal action taken after violation.

Life Estate

Ownership limited to the duration of a person's life.

Bundle of Rights

Ownership rights—possession, control, enjoyment, exclusion, disposition.

Leasehold Estate

Tenant's right to occupy property for a fixed time.

Estate for Years

Lease with a definite start and end date.

Periodic Estate (Estate from Period to Period)

Lease that renews automatically.

Estate at Will

Lease that can be ended at any time.

Estate at Sufferance

Tenant remains after lease expires without permission.

Gross Lease

Tenant pays rent; landlord pays expenses.

Net Lease

Tenant pays rent plus some or all expenses.

Percentage Lease

Tenant pays rent plus percentage of business income.

Lien

Claim against property for payment of a debt.

Lien Priority

Order in which liens are paid upon foreclosure.

Air Rights

Right to use or control space above land.

Surface Rights

Right to use land's surface.

Subsurface Rights

Right to use resources below the land's surface.

Valid Deed

Must include grantor/grantee, consideration, legal description, delivery, acceptance.

Types of Deeds

General warranty, special warranty, bargain and sale, quitclaim.

Voluntary Alienation

Property transferred by sale or gift.

Involuntary Alienation

Property transferred without owner's consent (foreclosure, eminent domain).

Constructive Notice

Information available to the public (recorded documents).

Actual Notice

Direct knowledge of a fact or claim.

Title Abstract

Summary of recorded title history.

Chain of Title

Chronological history of ownership.

Marketable Title

Title free from major defects.

Cloud on Title

Any claim that affects clear ownership.

Attorney Title Opinion

Attorney's judgment on title validity.

Quiet Title Lawsuit

Court action to settle ownership disputes.

Title Insurance

Protects against title defects and claims.

Market Value

Most probable price a property will bring.

Market Price

Actual selling price.

Characteristics of Value

Demand, utility, scarcity, transferability.

Principles of Value

Substitution, conformity, progression, regression, contribution.

Appraisal

Professional estimate of property value.

Appraisal Process

Define problem, collect data, apply approaches, reconcile value.

Federal Oversight of Appraisal

Appraisal practices regulated by Appraisal Foundation and USPAP.

Sales Comparison Approach

Value based on recent comparable sales.

Cost Approach

Value based on replacement cost minus depreciation.

Depreciation

Loss of value due to deterioration or obsolescence.

Physical Deterioration

Wear and tear.

Functional Obsolescence

Outdated design or features.

Economic Obsolescence

Value loss due to external factors.

Reproduction Cost

Cost to build exact replica.

Replacement Cost

Cost to build similar modern property.

Income Approach

Value based on income generated.

Gross Rent Multiplier (GRM)

Price ÷ Gross Rent.

Gross Income Multiplier (GIM)

Price ÷ Gross Income.

Comparative Market Analysis (CMA)

Agent's informal estimate of value.

Broker Price Opinion (BPO)

Broker's written estimate of value.

Assessed Value

Value assigned for tax purposes.

Express Contract

Clearly stated terms.

Implied Contract

Terms inferred from actions.

Unilateral Contract

One party makes a promise.

Bilateral Contract

Both parties make promises.

Voluntary Agreement

Parties must consent freely.

Legally Competent Parties

Parties must have legal capacity.

Lawful Consideration

Something of value exchanged.

Legal Purpose

Contract must be for a legal act.

Executed Contract

Completed by all parties.

Executory Contract

Not yet fully performed.

Valid Contract

Meets all legal requirements.

Void Contract

Has no legal effect.

Voidable Contract

May be canceled by one party.

Unenforceable Contract

Valid but not legally enforceable (e.g., oral).

Breach of Contract

Failure to meet obligations.

Rescission

Canceling a contract.