Before we can begin learning the basics of real estate, we need to learn what specific words mean. Land for example, seems easy enough, but there can be more to it that just the dirt and grass growing on top of it. It is important to know what many real estate terms mean so that you can effectively communicate with your agent and lender. So, we will start slowly.
Land is defined as the earths surface. It extends downward to the center of the earth. Land includes subsurface and mineral rights as well as other natural resources that occur underground. Land also includes the air rights up to infinity! These air rights and subsurface rights can be sold off apart from the land as well. Land also includes “fructus naturales” or fruits of nature like trees and crops that do not need cultivation. A bit more than you originally thought, isn’t it?
Next comes real estate. Real estate is all of the surface, subsurface and air rights included in the definition of land, plus all things permanently attached to that land. These improvements can be natural or artificial (man made such as buildings), but that is not all!
Real property is defined as the interst, benefits, and rights that are automatically included in the ownership of land and real property. These rights inlclude:
Right of Possesion – To live on the that land
Right to Control the property within the framework of the law
Right of Enjoyment – To us the property in any legal manner
Right of Exclusion – To keep other people from entering or using your property
Right of Disposition – To sell, will, transfer or otherwise dispose the property
This is usually shortened to the word “Realty,” which means “Real Property.” Who would want to buy a home and not expect to have all of these rights included? So when we talk about real estate, we usually mean real property because we mean to include all of the rights that come with buying property.
Title to real property means the right to ownership of the land, bundle of rights (above) and evidence of ownership by written document, a deed, by which the title is transfered.
An appurtenance is a right or privilege associated with real property in some way, such as a parking space in a multistory building, an easement (when someone else has rights to use your land) or air rights, and is normally conveyed to the new owner when the property is transfered.
A fixture is personal property that has been affixed to the land or building so that by law it becomes part of the real property. For example, when you install a new sink fixture in your bathroom, when you purchased the sink it was your own personal property, but when you installed the sink and it became part of the bathroom, it became real property and would now stay with the home if you sold it.
Well that is a good start. Knowing those key terms will help you become a more educated buyer which will help you to find and negotiate better deals for you in the long run.
