Real Property Characteristics, Legal Descriptions, and Property Use

Immobile

Geographic location is fixed and can never change

Legal Descriptions

Metes and Bounds, Monuments, Lot, block, and subdivision, Rectangular survey system or U.S. government survey and A description in a previously recorded document

Methods used to describe real property

Metes and Bounds, Monuments, Lot, block, and subdivision, Rectangular survey system or U.S. government survey and A description in a previously recorded document

Lot, block, and subdivision

comes from a recorded subdivision plat. Lot and block are used in Texas. The One to Four Family Residential Contract (Resale) calls for a lot and block description of the property.

Fixtures, trade fixtures, emblements are

personal property

A lease is the

personal property of the tenant, giving rights of possession, but not rights of ownership.

a ceiling fan is

personal property, but once it's installed on the ceiling it becomes a fixture (now its part of real property)

The two broad categories of land are

physical characteristics and economic characteristics

Monuments

are physical markers, either manmade or naturally occurring, that mark the corners of the property. Natural monuments (trees, rocks, streams) take precedent over linear measurements

Emblements

are regarded as personal property.

In commercial leasing, trade fixtures

are articles installed by a tenant and removable by the tenant before the lease term expires. If not removed, they become the real property of the building owner by accession.

Fructus industriales

are fruits of labor or industry, i.e. such crops or other products of the soil produced through sowing and cultivation, including most vegetables (examples: corn, wheat, rye, oats, and other grain crops)

The owner of the surface rights does not always control

the subsurface or air rights to the property.

In a metes and bounds description

the surveyor sets out to describe the perimeter of the property in terms of feet distance, direction, degrees, and compass points. The survey fails if it does not return to the point of beginning as it doesn't completely encircle the parcel of real estate.

Land

which is everything from the term-4center of the earth upward. It includes the subsurface, surface, and the air above the earth. Land does not include anything made by man.

The rule for fitness or adaptation asks the question

"Has the item been made for the property?"

fitness or adaptation to the property

(example: custom curtains)

intention of the parties

(example: tenant installs sound system, but intends to remove at lease end)

Emblements

(fructus industriales) are annual crops that have been planted for harvest.

The method of attachment

(if permanent) makes the item real property

physical characteristics

(those features that all land possesses)

economic characteristics

(those features that contribute to the value of any given parcel of land)

Unique or Nonhomogeneous

All land parcels differ geographically, and each has its own location, no two land parcels are identical.

Scarcity

Although there is a substantial amount of unused land, supply in each location can be limited.

What are additional forces that must be accounted for in determining real estate values?

Economic and market conditions

accession

Examples: Store shelves, refrigerators, lighting, and restaurant equipment

Physical characteristics include

Immobile, Indestructible and Unique or Nonhomogeneous

Fixity also called Permanence of Investment

Improvements represent a large fixed investment.

Indestructible

Land cannot be destroyed. Use of the land can be destroyed, but the land is not destroyed.

What affects real estate values

Physical, social, and political forces

Modification

Placement of an improvement affects value and use.

Situs

Referred to as area preference (people's choice and preferences for a given area). With location preference, as areas change, people's desire to be in each location can change.

Economic characteristics include

Scarcity, Modification, Fixity also called Permanence of Investment and Situs

Metes and Bounds

The oldest form of land description used in the United States. Texas uses metes and bounds. The description generally starts with a benchmark (permanent reference mark) and must return to the point of beginning (POB).

When a buyer purchases a furnished house, the document that evidences the buyer's ownership of the furniture or a free-standing appliance is

a bill of sale.

In residential leasing

a fixture attached to the property by the tenant becomes the property of the landlord.

A street address is NOT

a legal description; it is an informal reference.

As for the contractual intent of the parties

all parties should be told specific intentions and should be stated in writing to be legally protected.

A description in a previously recorded document

can also be used as a legal description (for example, copying a deed that is recorded in the Deed Records of the county where the property is located).

Personal property can be divided into two subgroups:

chattels and intangibles

Example of severance is

cutting down a tree or taking down a ceiling fan.

Two other methods used to determine if a fixture is real property are

fitness or adaptation to the property (example: custom curtains) and intention of the parties (example: tenant installs sound system, but intends to remove at lease end).

Personal property

includes belongings exclusive of land and buildings and anything permanently attached.

Intangible personal property

involves a legal right

datum

is a marker used to measure the elevations of points on the earth's surface, a horizontal plane from which heights and depths are measured.

Parcel

is a specific tract of real estate defined by a legal description. When used by the tax assessor the tract is a tax parcel

The transfer of the property from one owner to another

is by deed

Severance

is changing an item of real estate to personal property by detaching it from the land

Real property

is immovable property that includes land and anything attached to the land

Real property

is land plus the improvements made by man plus the legal rights to the land (example: mineral rights or fructus naturales (natural fruits)).

Real estate

is land plus the improvements made by man, including buildings, highways, and utilities.

Personal property

is movable property that is not permanently fixed to one location.

Chattel

is personal property. It is basically movable. Examples - furniture, cars, and other personal possessions.

Survey

is the physical limits of where the property rights extend. Legal descriptions should only be prepared by a surveyor or a title attorney. From a legal standpoint, a legal description must be sufficient enough for a surveyor to locate the property.

Situs is the most important economic characteristic of

land - location, location, location

A fixture is personal property which has been converted to real property by

method of attachment or annexation

Something that was personal property must meet the test of a fixture before it can become real estate. The tests include:

method of attachment, fitness or adaptation, and contractual intent of the parties.

fructus naturales

natural fruits

Accordingly, the mineral owner has an implied right to use as much of the surface as is

reasonably necessary to produce the minerals under the property.

Ownership of land can be laterally severed into

subsurface rights, surface rights, and air rights.

For example, when there has been a severance of minerals from surface ownership, the mineral estate is

the dominant estate and the surface estate is the servient estate

A bill of sale is used

to convey personal property, while real estate is conveyed with a deed

Rectangular survey system or U.S. government survey

uses longitudes and latitudes, meridians, and baselines to create townships. There are 36 sections in a township. Each section has 640 acres. While Texas does not use the rectangular survey system, it does use sections in townships.

Complete legal descriptions can be obtained from:

• Title companies • Recorded deeds • Recorded deeds of trust • Recorded mortgage but NOT tax statements. A tax statement is not required to have a legal description.