Real Property vs. Personal Property

Definitions

• Real Property

  • Anything permanently attached or affixed to the land.
  • Becomes part of the real property once attached.
  • Also referred to as "realty."

• Personal Property

  • Anything not permanently attached to the land.
  • Referred to as "chattel" or "personalty."

Conversion

• Severance

  • Converting real property to personal property by removing it from the land (e.g., cutting down a tree).

• Annexation

  • Converting personal property to real property by attaching it permanently (e.g., installing a door).

Bundle of Rights

• Intangible rights associated with owning property.
  • Right of Possession
  • Right of Control
  • Right of Enjoyment
  • Right of Disposition
    • Right to transfer, will, or sell the property.
  • Right of Exclusion
    • Right to deny access to others legally.

Government Survey System

Overview

• Also known as the rectangular survey system.
• Used to legally describe and identify specific parcels of land.
• Part of three legal description systems: government survey, metes and bounds, lots and blocks.

Fundamentals

• Township

  • Composed of 36 sections.
  • Each township equals 23,040 acres.

• Sections

  • Each section equals 640 acres.
  • Subdivisions:
    • One quarter of a section = 160 acres.
    • Half of a quarter = 80 acres.

Usage

• Used for legal and land descriptions.
• Includes math-related questions on exams.

Liens

Types of Liens

• Voluntary Lien

  • Intentional lien, e.g., a mortgage.

• Involuntary Lien

  • Not desired by the owner, e.g., a tax lien due to unpaid taxes.

• General Lien

  • Applies to all properties owned, both personal and real.

• Specific Lien

  • Applies to specific properties, e.g., real estate tax lien.

• Statutory Lien

  • Imposed by court to enforce legal obligations.

• Equitable Lien

  • Imposed to achieve fairness.

Priority

• Superior Liens

  • Take priority over others, e.g., government liens.

• Junior Liens

  • Subordinate to superior liens.

Interest vs. Estate

Definitions

• Estate

  • Defines the extent of ownership interests in real property.
  • Includes freehold and leasehold estates.

• Interest

  • Represents a right someone may have to a property.
  • Can vary in strength, but defines ownership interest extent.

Importance

• Understanding the distinction between interest and estate is crucial for exams.