Real Property
Real estate, plus the interests, benefits and rights automatically included with real estate ownership
Personal Property
Everything that’s not Real Property
Improvements
Permanent, man-made attachments (ie. fencing, buildings, walkways)
Chattel
Another word for Personal Property - everything not included in Real Property
Trade Fixtures
In commercial properties, equipment placed on or attached to real estate that the renter uses in their trade or business
Emblements
Another word for Fruits of Industry
Severance
Occurs when an item that was Real Property becomes Personal Property by detaching it from the land
Fixture
Part of the Real Property being conveyed in a real estate transaction
Convey
The transfer of property from one party to another
Tests to determine whether an item is a fixture or not
MARIA (Method of annexation, Adaptability of item to the land’s use, Relationship of the parties, Intension of placing their item on the land, Agreement of the parties)
Method of Annexation
Refers to whether an item is attached to the property and how permanent the attachment is
Adaptability to the land’s use
How an item is situated or adapted to the Real Property
Relationship of the parties
The relationship between the two parties (tenant vs. landlord, buyer vs. seller) (courts tend to favor the tenant and the buyer)
Intention in placing the item on land
The intention of the party who installed the item, may change over time or the item may change from temporary to permanent (ie. bookshelves that are later anchored to a wall)
Agreement of the parties
An agreement between the parties of whether an item should stay or go (should be in writing)
Bill of Sale
An agreement in the purchase contract (but separate from the sales contract) about what items are staying with the property and what items are going with the seller
Fruits of Industry
(Also called Emblements) plants that require annual cultivation (ie. crops of fruit, vegetables, wheat, corn) - are considered Personal Property
Fruits of Nature
Plants that don’t require annual cultivation (ie. trees, perennial shrubs, some grasses) - are considered real property
Annexation
Occurs when Personal Property is attached to Real Property, making it a fixture
Situs
A property’s location
Nonhomogeneity
Uniqueness - the inability to exactly replicate something
Economic Characteristics of Real Property
Scarcity, Situs, Permanence/Fixity of investments, Improvements/Modifications
Physical Characteristics of Real Property
Immobility, Indestructibility, Nonhomogeneity
