UNIT 2: Real Property and the Law

What is the definition of Real Property and one example of it?

The interests, benefits, and rights that are automatically included in the ownership of the land and real estate

Examples include: Land extending downward to the center of the earth, kitchen islands, built-in cabinets, lighting fixtures and doors

What is the definition of Personal property and one example of it?

Any moveable item that is not permanently attached to the land or property and will not cause damage in the removal process

Examples include: Furniture, tables, chairs, appliances, blinds and curtains

What is the difference between Real property and Personal property?

Real property includes land and all things permanently attached to it

Personal property includes property that is moveable

What are the Bundle Of Legal Rights?

Disposition: The ability to sell/transfer, dispose of or encumber property

Enjoyment: Use in any legal manner

Exclusion: Keep others from entering or using

Possession: The right to occupy

Control: Within the framework of the law

TIP: REMEMBER DEEP C

Appurtenance

Anything associated with the property, although not necessarily a direct part of it

Fixture

An item of personal property that has been so attached to the land or a building that by law, it becomes part of the real estate

Trade Fixture

An item owned by a tenant and is attached to a building or a rented space (also called a chattel fixture)

What is the difference between a Fixture and a Trade Fixture?

A fixture is personal property that has been so affixed to the land that by law, it becomes real property

A Trade Fixture is an item attached to the land by a tenant for business use that remains personal property and can be removed

Accession

Trade Fixtures that are not to be removed and become real property of the landlord (Kitchen islands and built-in lighting fixtures, like pendant lights)

What are the Economic Characteristics Of Real Estate?

Scarcity: Not limitless

Improvements: Adding value to the land or property

Permanence Of Investment: Long term and relatively stable

Location: Area preference

What are the Physical Characteristics Of Real Estate?

Immobility, Indestructibility, Uniqueness