Real Property and the Law

1
Real Property and the Law
2
Land v. Real Estate v. Real Property

• Land earths surface (down to center of earth
  and up to infinity) and things naturally,
  permanently attached to it. (trees, rock
  formations, etc.)
• Real Estate includes things permanently
  attached, whether natural or man-made.
• Real Property interests, rights, and benefits
  included in ownership of land and real estate.

3
What rights are included?

• possession
• control
• enjoyment
• exclusion
• disposition
• (all within boundaries set by law)

4
Questions . . .

• What does it mean to have title to a piece of
  property?
• What document provides evidence of your title to
  a property?
• Why would you be concerned that your ownership
  extends into the earth?
• What about into the air?

5
Real Property v. Personal Property

• This is one of the toughest distinctions you will
  have to make.
• Why is it important?
• Some examples
• mobile home
• crops and trees
• air conditioner
• Severance and Annexation

6
What is a fixture?

• Personal property that has been so affixed to the
  land or a building that, by law, it becomes part
  of the real property.
• Legal tests of a fixture
• Method of attachment (annexation)
• Adaptation
• Agreement (intent of the parties)
• Trade fixtures

7
Characteristics of Real Property

• Economic characteristics
• scarcity
• improvements
• permanence of investment
• location
• Physical characteristics
• immobility
• indestructibility
• uniqueness

8
Laws Affecting Real Estate

• See book for details
• Real estate licensees must be very careful about
  practicing law when working on a transaction.
• Also, other people are prohibited from acting as
  a real estate licensee.
• Note dont confuse the terms Realtor with that
  of licensee.