Principles of Real Estate 1

Real Property

Land, improvement, and the rights that come with ownership.

Example : A house, the land it sits on, the driveway, and mineral rights.

Personal Property

Movable items not attached to the land.

Example : A refrigerator that is not built-in is personal property.

Fixture

An item once personal property that is now permanently attached.

Example : Mounted TV brackets stay; the TV itself does not.

Trade Fixture

Installed by a tenant for business; can be removed before lease ends.

Example : Salon shampoo bowls—tenant must remove them before lease ends.

Bundle of Rights

Right to possess, control, enjoy, exclude, and dispose of property.

Example : you can rent it out, block entry, remodel it, or sell it.

Encumbrances

A claim or liability against a property (Easement, lien)

Example : A Mortgage, deed restriction, or easement is an encumbrance.

Easement Appurtenant

Easement that benefits a neighboring property.

Example : A driveway easement allowing the back property to reach the end of the road.

Easement in Gross

Not tied to a property; benefits an individual or company

Example : A power company’s right to run electric lines across your yard.

Encroachment

A physical intrusion onto someone else’s land.

Example : neighbors fence is built 2 feet over your property line.

Appurtenance

A right or improvement that transfer with the property.

Example : Assigned parking space for a condo; water rights for a ranch.

Metes and bounds

Legal descriptions using directions and distances

Example : Used in rural land - “150 feet north to the oak tree….”

Lot and Block

Description used in subdivisions and plats

Example : “Lot 24, Block B, subdivision.”

Government survey systems

Uses townships, ranges, and sections

Example : Section 14, Township 3 North, Range 2 East.

Zoning

Local regulations controlling land use.

Example : Residential zoning prevents building a gas station on the lot.

Variance

Permission to break zoning rules.

Example : Being allowed to build a garage closer than the setback requirement

Non-Conforming use

Property use grandfathered in after zoning changes.

Example : A corner store built before the area was rezoned residential.

Police Power

Government authority (zoning, codes) to protect public.

Example : City requiring smoke detectors in every bedroom.

Eminent Domain

Government right to take private land for public use.

Example : Taking land to build a new highway.

Condemnation

The process used to take property under eminent domain.

Example : Government files a condemnation lawsuit to take land for school.

Escheat

Property returns to the state when the owner dies with no heirs

Example : A man dies with no family; Texas takes ownership of his house.

Freehold Esate

Ownership for an infinite duration.

Example : A homeowner with full time title has a freehold estate.

Leasehold Estate

Tenants right to occupy property for a set time.

Example : A 12-month apartment lease creates a leasehold estate.

Joint Tenancy

Co-ownership with right of survivorship.

Example : If two friends own a home in a joint tenancy and one dies, the other gets full ownership.

Tenancy in common

C0-ownership without survivorship.

Example : Two siblings inherit land; each can sell and pass their share independently

Community Property

Property acquired during marriage owned equally by spouses.

Example : A house bought after marriage belong 50/50 to both spouses, even if only one name is on the title.