Real vs. Personal Property Flashcards
What is Real Property?
Land plus appurtenances that benefit the land.
Define Appurtenances
Appurtenance means “belongs to or goes with”. They are things that transfer with the land when the land is transferred to another owner, such as improvements, rights, privilege’s, and fixtures.
What are the 4 appurtenant rights?
- Surface Rights
- Subsurface Rights
- Air Rights
- Mineral Rights
What is Personal Property?
Also referred to as “chattel”, is everything owned that is not real property and must be included in the sale contract if the buyer wishes to receive it.
Are trees, bushes, house, garage, water, and the rights of ownership an appurtenant?
Yes, because all of those are permanent, belongs to and goes with the land. They all will be transferred over to the new owner.
Economic Characteristics of Real Property are?
- Scarcity
- improvements
- permanence of investment
- location
Define Scarcity
the supply of land is not limitless (shortage) hence the word “scarce”. Land at a given location, or of a particular quality is scarce.
Define improvements
an improvement built on a parcel of land that affects the lands value and use. Example: renovating or adding buildings or structure
Define permanence of investment
The capital and labor required to build an improvement may be a large investment, the return on an investment tends to be long and stable.
Define location in economic characteristics
Sometimes called “area preference” and/or “situs”, location refers to people’s preferences of an area based on its history, reputation, scenic beauty, and convenience.
Physical Characteristics of Real Property are?
- immobility
- indestructibility
- uniqueness
Define immobility
Geographic location of any given parcel of land can never be changed. It is fixed and therefore immobile (motionless, unmovable)
Define indestructibility
Land is considered indestructible, the permanence of land tends to make investments in real property relatively stable. However, improvements on land can depreciate and reduce the land’s value.
Define Uniqueness
Also known as “nonhomogeneity”, Uniqueness is the concept that no two parcels of land are alike or in the same location. Each parcel is geographically distinct.
An owner may transfer these rights to another party while still retaining surface rights to the land itself.
Mineral and Air Rights