Characteristic Categories of Real Estate Flashcards
Economic Characteristics of Real Estate
SIPL
scarcity
Improvements
Positive or negative impact
Permanence if investment
Improvements such as sewer and roads are long term stable investments
Location or area preference
A property’s value is large dependent on situs (area of location)
Physical Characteristics of Real Estate
IIU
Immobility
Geographic location of a piece of land is fixed; can’t be moved
Indestructibility
Improvements can deteriorate but land cannot be destroyed
Uniqueness One parcel (piece of land) will not like another. Concept of nonhomogenity
Bundle of Rights
The right of possession -property is owned and may be possessed by title holder
The right of control- owner controls the use of property
The right of exclusion- the right to decide who may or may not access the property
The right of enjoyment - ability of the owner to use property in any legal manner
The right of disposition -right to sell or convey property
Lands physical components
Surface rights - water and land
Subsurface- rights to use underground resources such as gas and minerals often referred to as MINERAL RIGHTS
Air rights- use the open space above buildings up to a height established by law
Right of profit- the right to harvest timber, for example and sell it
Water Right types
Percolating
The right to draw water from underground resources (wells)
Riparian
The right to access and use rivers, stream, and other flowing bodies of water adjacent to property
Littoral
The right to access and use ponds, lakes, oceans, and other stationary bodies of water bordering the property
Appurtenances
The inherent or automatic ownership rights that are the natural consequences of property ownership.
Examples are profit, license, air rights, subsurface rights, water rights
Profit in land
Legal term that means the right to take products out of the soil. Profit in land can be more valuable than owning the land .
License
A permission to something on another’s land without actually possessing any interest or ownership in the land. Licenses can be revoked by the owner at any time unless termination date has been specified contractualy
Riparian Rights
Common law rights granted to landowners whose land abuts a natural flowing body of water, such as a river
Littoral rights
Rights of landowners whose lands border commercially navigable closed bodies of water, such as lakes and oceans
What are the Natural processes associated with water rights
Accretion -process by which water carries rock, sand, and soil and causes land build up
Alluvion-new deposits of land that are a result of accretion -common at mouth of rivers
Avulsion- loss of land by sudden large scale changes in water flow
Erosion - gradual loss of land due to natural force
Reliction- gradual receding of water, which uncovers new land
Surface water
Includes all water in rivers, streams, Lakes, West wetlands, and other natural waterways. Surface water is owned by the public
Ground Water
Sometimes called percolating water, is water and underground aquifers (in soil or rock )
TRIBUTARY Ground water
Is all water and natural surface streams and groundwater that’s HYDRAULICALLY Connected to surface water, either because the surface water percolates into the ground water source, or because the ground water seeps into surface water bodies
Non-TRIBUTARY ground water
Is either water that’s separated from surface water buy some impermeable layer in the aquifer or water that’s so far from the surface that there’s no connection to surface water
