Principles of California Real Estate PDF (Chapter 1)

I. What is Real Property? II. Appurtenances A. Air rights B. Water rights C. Solid mineral rights D. Oil and gas rights E. Other appurtenant rights III. Attachments A. Natural attachments B. Man-made...

I. What is Real Property? II. Appurtenances A. Air rights B. Water rights C. Solid mineral rights D. Oil and gas rights E. Other appurtenant rights III. Attachments A. Natural attachments B. Man-made attachments (fixtures) C. Distinguishing fixtures from personal property 1. Written agreement 2. Method of attachment 3. Adaptation to the property 4. Intention of the annexor 5. Relationship of the parties D. Mobile homes IV. Land Description A. Metes and bounds B. Government survey C. Recorded map D. Other methods of land description Real estate agents are concerned not just with the sale of land and houses, but with the sale of real property generally. Real property includes the land and improvements, and it also encompasses the rights that go along with ownership of land. The first part of this chapter explains those rights, which are known as appurtenances. It also explains natural attachments and fixtures, which are sold as part of the land, and the distinction between fixtures and personal property (which ordinarily is not transferred with the land). The second part of this chapter explains methods of legal description —the different ways in which a parcel of land may be identified in legal documents to prevent confusion about its boundaries or ownership. What Is Real Property? There are two types of property: real property (realty) and personal property (personalty). Real property can be defined as land, anything affixed or attached to the land, and anything incidental or appurtenant to the land. Sometimes it is described as “that which is immovable.” Personal property, by contrast, is usually movable. A car, a sofa, and a hat are simple examples of personal property. Anything that is not real property is personal property. The distinction between real and personal property is very important in real estate transactions. When a piece of land (a parcel) is sold, anything that is considered part of the real property is transferred to the buyers along with the land, unless otherwise agreed. But if an item is personal property, the sellers can take it with them when they move away, unless otherwise agreed. Of course, the principal component of real property is land. But this means more than just the surface of the earth. Real property also includes the subsurface: everything beneath the surface of the parcel down to the center of the earth. It also includes the airspace: the space above the surface of the parcel. A parcel of real property can be imagined as an inverted pyramid, with its tip at the center of the globe and its base above the earth’s surface. The landowner owns not only the earth’s surface within the boundaries of the parcel, but also everything under and over the surface. In addition to the land itself, any improvements to the land are part of the landowner’s real property. Improvements are things that have been added to, built on, or done to the land to improve or develop it. A house, a driveway, and landscaping are all examples of improvements. The rights, privileges, and interests associated with land ownership are also considered part of the real property. Think of real property as the land and improvements plus a “bundle of rights.” The owner’s bundle of rights includes the right to possess, use, enjoy, encumber, will, sell, or do nothing at all with the land. Of course, these rights aren’t absolute; they’re subject to government regulation (see Chapter 5). Appurtenances In addition to the basic bundle of ownership rights, a landowner has appurtenant rights. An appurtenance is a right or interest that goes along with or pertains to a piece of land. A landowner’s property may include any or all of these appurtenances: air rights, water rights, solid mineral rights, oil and gas rights, and support rights. Appurtenances are ordinarily transferred along with the land, but the landowner can sell certain appurtenant rights separately from the land. For example, the owner may keep the land but sell his mineral rights to a mining company. Air Rights