The earth's surface extending downward to the center of the earth and upward into space, including permanent objects, such as trees and water.
Land, at above and below the earth's surface and all things permanently attached to it, whether natural or artificial.
Includes both land and real estate. Interests, benefits and rights that are automatically included in the ownership of the land and the real estate. "Property" refers to anything that can be owned.
Bundle of Legal Rights
- Right of possession
- Right to control the property within the framework of the law
- Right of enjoyment to use the property in any legal manner, (ownership that is not interrupted)
- Right of exclusion, to keep others from entering or using the property
- Right of disposition, to sell, will, transfer, or otherwise dispose of or encumber the property
Rights to use the surface of the earth
- Rights to use the natural resources lying below the earth's surface lying below the earth's surface.
- Rights are TRANSFERRABLE
Process of downward land shifts due to the the collapse of underground mine shafts and groundwater flows, usually resulting in sinkholes or troughs.
Types of mine subsidence damage
- 1. Functional, one or more system, electrical, sewage, plumbing.
- 2. Cosmetic, safe but unsightly
- 3. Structural, framework of building, integrity of structure, usually unstable or inhabitable
- The rights to use the space above the earth.
- May be sold or leased independently.
Special law rights held by owners of land adjacent to rivers, lake or oceans and are restrictions on the rights of land ownership
Personal Property (Personality)
- Can be moved. Also called chattels.
- Chairs, tables, clothing, money, bonds and bank accounts
Real Estate (Real Property)
Can not be moved
Factory Built Housing
- Personal Property (Chattels)
- Built offsite and trucked to a building lot
- Includes modular, paneled, pre-cut and mobile homes.
- Can be lived on without a foundation
National Manufactured Housing Construction and Safety Standards Act of 1976
- Mobile homes are now called manufactured homes.
- Federal government regualtion
- Formerly called mobile homes
- Regulated by Housing and Urban Development (HUD)
- Capable of being lived in with or without a foundation
- Contains a RED label indicating that the home has been built in compliance with HUD construction and safety standards.
- Can be RESOLD by real estate agents
- Originally sold as a motor vehicle
- Does not require annual cultivation
- Perennial bushes
- Considered real estate
Emblements (fructus industriales)
- Requires annual cultivation
- Farmer can come back and harvest the crops when read
- Not personal property and convey with the land
- Changes real property to personal property
- Growing tree unless it is cut down, severing it from the real estate
- Apple once it is picked from the tree
- Ceiling fans
- Changes personal property into real property
- Technical equipment
- Sand, stones and cement used to build a driveway
- Personal property that has been affixed to the land or building that becomes real
- Any item that is added as a permanent part of the building
- Heating plants
- Kitchen cabinets
- Light fixtures
Legal Tests of a Fixture (Real Property)
- Intent-was the item installed intended to stay on the property
- Method of Annexation-how permanent is the method of attachment. Can it be moved without causing damage.
- Adaptation to Real Estate-Is it being used as real or personal property. Refrigerator is usually personal property unless it has been adapted as part of the cabinetry.
- Agreement-have the parties agreed to treat an item as though it is real or personal property
Trade Fixtures (Chattel Fixture)
- Owned and installed for business use by the tenant and attached to the rental space or building
- Must be removed on or before the last day the property is rented.
- Tenant is responsible for any damage caused by removal of fixture
- Bowling alleys
- Store shelves
- Bar room and restaurant equipment
- Pizza Ovens
Acquiring property (trade fixtures) that are not removed on the last day the property is rented.
Four Characteristics of Real Estate (Real Property)
- Improvements-improving a parcel by building a shopping center or selecting a site for a nuclear power plant or toxic waste dump changes the value of the land
- Permanence of Investment-Capital and labor used to build the improvement-deck, additional story
- Location or area preference (situs)-peoples preference to a certain area
Three Physical Characteristics of Real Estate
- Immobility-can it be moved
- Indestructibility-land is indestructible
- Uniqueness-(homogeneity) no two parcels are exactly alike or in the same location
- No two parcels of property are exactly alike
Specific Areas of Law Affecting Real Estate
- Law of Contracts
- General Property Law
- Law of Agency
- State specific Real Estate License Law