Chapter 2: Real Property and the Law - Key Concepts and Rights

Chapter 2: Real Property and the Law

Appurtenances

  • An appurtenance refers to a property right or improvement that is attached to the primary property.

  • Ownership of the appurtenance normally transfers to the new owner when the property is sold.

  • Example: A garage or an extra structure built on the property.

  • See Figure 2.2 for visual representation.

Rights Associated with Real Property

Surface Rights

  • Definition: Ownership rights in real estate that are limited to the surface of the earth.

    • Typically encompass all items attached to the surface.

    • Limited to the surface and a measurable distance into the earth, as agreed by the property owners or established by law.

  • Surface rights may include different categories of rights depending on the land use and ownership transfer:

    • Timber Rights: Rights associated with timber resources on wooded lots.

    • Agricultural Rights: Rights concerning agricultural use, such as sharecropping.

    • Water Rights: Important for transfers and ownership of property that may impact water resources.

Subsurface Rights

  • Definition: Rights to natural resources located below the earth's surface.

  • Notable characteristics:

    • Subsurface rights can be transferred without transferring surface rights; vice versa is also true.

    • Common in oil-producing states where properties are transferred without mineral rights included in the sale.

    • Recently, natural gas extraction through hydraulic fracturing, or “fracking,” is generating renewed interest in subsurface rights.

  • Environmental and safety concerns related to fracking include potential contamination and land degradation.

Air Rights

  • Air rights refer to the ownership rights concerning the space above the surface of the property.

Water Rights

  • Definition: Rights associated with ownership of land adjacent to bodies of water such as rivers, lakes, or oceans.

    • Can be classified as:

    • Historical rights (common-law, based on court decisions).

    • Statutory rights (legislatively enacted).

  • Water rights contain restrictions on land ownership used for:

    • Agricultural purposes.

    • Recreational uses.

    • Other necessary uses.

  • Particularly significant in arid western states, given the scarce and valuable nature of water.

  • Each state has specific laws governing water ownership and adjacent land, reflecting regional climatic and topographical conditions.

Overview of Importance of Water Rights

  • Crucial for maintaining agriculture, recreational opportunities, and urban development.

  • Waterfront properties are historically desirable and can have a significant impact on property value, attractiveness, and utility.