Lesson 3: Real Property Flashcards
Constructive severance
occurs when an interest in land is sold separately from the real property, but the interest in question remains in, on, or attached to the land itself.
Uniform Commercial Code
California has adopted a statute called the Uniform Commercial Code (UCC) to deal with the sale of personal property (also referred to as goods).
Under the UCC, any crops and timber subject to sales contracts are considered goods.
Their sales are governed by the UCC, even when the crops and timber are still attached to the land.
doctrine of emblements
A special rule called the doctrine of emblements applies when a farmer leases land for an indefinite period of time.
In this situation, if the tenancy is terminated—through no fault of the tenant—before the crop is ready for harvest, the tenant has the right to re-enter the land and harvest the crop.
profit à prendre
Constructive severance may simply involve the transfer of a nonpossessory property interest known as a profit à prendre: the right to enter another’s land to remove the soil or a product of the soil, such as oil, gas, crops, or timber.
A profit à prendre is a property interest, but it is not a form of real property ownership.
separate title
On the other hand, constructive severance may involve the transfer of separate title.
A person or company with separate title actually owns the land (or interest in the land) that was the subject of that severance.
In other words, a person with separate title takes possession of one of the sticks in the bundle of rights, and the landowner’s bundle of rights is reduced.
actual annexation
Physical attachment—called actual annexation—is not absolutely necessary for an item to qualify as a fixture.
The force of gravity, for example, may be sufficient to render a theoretically moveable item immovable.
constructive annexation
Some small items are completely moveable, but they may still be considered fixtures if they are important to the real estate itself.
A commonly cited example is the keys to a house’s front door.
This is called the doctrine of constructive annexation.
Secured financing
Let’s take a moment to discuss secured financing and fixtures.
Secured financing refers to an arrangement in which personal property or fixtures are used to secure a loan or line of credit.
Secured transactions are governed by Article 9 of the Uniform Commercial Code (UCC).
appurtenance
An appurtenance is a right, privilege, or improvement associated with a piece of real property.
appropriative rights system
Under the appropriative rights system (also known as the prior appropriation system), using water in a way that diminishes the normal quantity requires a water permit from the state government.
Once a permit is obtained, water may be used on any land for the purpose specified in the permit application.
The state Water Commission Act of 1914 established the water permit process that is currently used in California.
rule of capture
Because of this, California follows the rule of capture: oil or gas is not owned until it is pumped to the surface and reduced to possession.
slant drilling
In California, slant drilling—using owned or leased property to purposefully tap a reservoir under a neighboring piece of property—is allowed, provided the well doesn’t “bottom out” or terminate under the neighboring property.
Slant drilling is also subject to setback requirements (usually the well entrance must be at least 100 feet from adjacent properties).
horizontal division
A horizontal division is a sale in which the right to own and use the surface property is divided from ownership of or rights to the subsurface minerals.
