Real Estate Vocabulary flashcards (Real vs Personal Property & Related Concepts)

A set of vocabulary flashcards covering key real estate concepts related to real vs. personal property, fixtures, rights in land, and Texas licensing law.

Real property

The rights in land plus the bundle of rights associated with ownership, including surface, subsurface, and air rights.

Personal property

Movable items not attached to land; also called chattel; transfers with real property typically by bill of sale.

Real estate

Land plus all the man-made improvements on the land (buildings, roads, etc.).

Bundle of rights

The collection of rights that come with real property (e.g., surface, subsurface, air, water rights) that can be separated or severed.

Fixture

Personal property that has become attached to land in a way that it becomes part of real property; transferred with the property unless excluded; tests include permanence, attachment, and adaptation.

Annexation

The process of attaching personal property to land so it becomes real property (a fixture).

Severance

Removing a fixture from real property to convert it back to personal property.

Emblements

Annual crops produced with labor; considered personal property; harvested by the tenant or owner depending on the situation.

Trade fixtures

Fixtures installed by tenants for their business; removable at lease end; otherwise become landlord’s property through accession.

Surface rights

Rights to use and enjoy the surface of the land and its near-surface resources; may be affected by severed mineral rights.

Subsurface rights

Rights to minerals beneath the surface; can be severed from the surface; the mineral estate is typically dominant.

Mineral estate

Rights to minerals beneath the surface; can be severed from the surface; may include royalty and executive rights; surface rights are typically subordinate.

Royalty rights

Right to receive a portion of the production revenues from minerals (oil, gas, etc.).

Executive rights

Right to execute leases and manage or broker mineral rights; these rights can be severed and owned separately.

Air rights

Rights to the space above the land; can be leased or conveyed (e.g., in condominiums or signage); limited by height and other laws.

Situs

The economic location of property from an economic viewpoint (not just geographic); location influences value and demand.

Indestructibility

Land’s durability; cannot be destroyed by external forces; remains over time.

Immobil ity

Land cannot be moved; it remains fixed in location.

Nonhomogeneity

No two parcels of land are identical; each parcel is unique in its characteristics and location.

Scarcity

Limited supply of land relative to demand; a primary driver of value.

Modification

Man-made changes to land or its surroundings that affect value (e.g., new transportation, infrastructure).

Fixity

Land’s fixed location and the long payback period for improvements; stabilization of value over time.

Ad valorem taxes

Property taxes assessed according to the value of real property.

TRELA

Texas Real Estate License Act; governs licensing of real estate brokers and salespersons in Texas and outlines the purpose of licensing to protect the public.

TREC

Texas Real Estate Commission; enforces TRELA, issues licenses, and promulgates rules with the force of law.