Real Estate Characteristics and Rights Flashcards
This common term is used to explain the complexities of property ownership rights
Bundle of Rights
What are land’s physical components.
Surface, subsurface, and air rights
Both land and water rights
Surface Rights
The right to use underground resources such as natural gas and minerals.
Subsurface Rights
Subsurface rights are also known as
Mineral Rights
The right to use the open space above buildings up to a height established by law.
Air Rights
The right to profit from the land.
Right to Profit
An owner can mortgage the property, thereby transferring an interest to a mortgagee for the term of the loan
Mortgage Rights
The right to draw water from underground resources (such as wells) for the landowner’s use.
Percolating
What are the three water rights
Percolating, Riparian and Littoral
The right to access and use rivers, streams, and other flowing bodies of water adjacent to the property.
Riparian
The right to access and use ponds, lakes, oceans, and other stationary bodies of water bordering the property
Littoral
A legal doctrine that grants water rights to the first individual or entity to take water from a source for beneficial use.
Prior Appropriation
What are the economic characteristics of real property
Scarcity, Improvements, Permanence of Investment, Location or Area preference
What are the physical characteristics of real property
Immobility, Indestructibility, Uniqueness
A limited supply of real estate
Scarcity
Adding a pool and landscaping to a home will increase its value or if a nuclear power plant is built, the surrounding land values will decline, are examples of
Improvement
Improvements, such as sewer, roads, and utilities, are long-term, stable investments with relatively stable returns over time.
Permanence of investment
A property’s value is in large part dependent on its situs (area where it is located and market desirability for the area).
Location or area preference
The geographic location of a piece of land is fixed; it can never be changed.
Immobility
While improvements may deteriorate over time, the land itself cannot be destroyed.
Indestructibility
One parcel (piece of land) will not be exactly like another. This is the concept of nonhomogeneity.
Uniqueness
