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Nature and Description of Real Estate ©OnCourse Learning. All Rights Reserved. Chapter 2

©OnCourse Learning. All Rights Reserved. In This Chapter You will be introduced to the terminology used to define and describe real estate.

©OnCourse Learning. All Rights Reserved. LAND Land starts at the center of the earth, passes through the earth’s surface, and continues on into space.

©OnCourse Learning. All Rights Reserved. Real Estate’s Dimensions Land includes: earth’s surface, sky above, & everything below.

Land Improvements Fixtures Tests of Fixture  annexation  adaptation  intention Trade Fixtures Plants, Trees, & Crops ©OnCourse Learning. All Rights Reserved.

Appurtenances A right or privilege or improvement that belongs to and passes with the land but is not necessarily a part of the land. ©OnCourse Learning. All Rights Reserved.

Water Rights Riparian Right Littoral Rights Percolating Water ©OnCourse Learning. All Rights Reserved. The landowner does not have absolute ownership of water that flows through or past their land. They do have the right of use it in a reasonable manner!

RIGHTS Texas Commission on Environmental Quality Water Development Board Ownership of Waterways  Underground Water  Conflicting Claims  State Rights  State Water Agencies ©OnCourse Learning. All Rights Reserved.

Land Descriptions 1. Informal references 2. Metes & Bounds 3. Rectangular Survey System 4. Recorded Plat 5. Assessor Parcel Number 6. Reference to documents ©OnCourse Learning. All Rights Reserved.

Metes and Bounds ©OnCourse Learning. All Rights Reserved.

Moving in a clockwise direction from the point of beginning, set the center of a circle compass on each corner of the parcel to find the direction of travel to the next corner. Naming Directions for a Metes and Bounds Survey ©OnCourse Learning. All Rights Reserved.

Rectangular Survey System Selected latitude and longitude lines serve as base lines and meridians ©OnCourse Learning. All Rights Reserved.

The public land survey system of the United States. Parallels and Meridians ©OnCourse Learning. All Rights Reserved.

Township Divided into Sections ©OnCourse Learning. All Rights Reserved.

One Section (640 Acres) ©OnCourse Learning. All Rights Reserved.

Land Description by Recorded Plat ©OnCourse Learning. All Rights Reserved.

The tax assessor assigns every parcel of land in the county its own parcel number. For example, the westernmost parcel (lot 50) in the map would carry the number , meaning Book 34, Page 18, Parcel 8. Assessor’s Map ©OnCourse Learning. All Rights Reserved.

Informal References ©OnCourse Learning. All Rights Reserved. Street numbers are informal references: the house located at 7216 Maple Street Apartment 101, 875 First Street the office at Suite 222, 3570 Oakview Boulevard the ranch known as the Rocking K Ranch (in each case followed by the city (or county) and state where it is located) Advantage: an informal reference is that it is easily understood. Disadvantage: From a real estate standpoint is that it is not a precise method of land description.

Vertical Land Description ©OnCourse Learning. All Rights Reserved.

Physical Characteristics of Land Immobility Indestructibility Nonhomogeneity ©OnCourse Learning. All Rights Reserved.

Economic Characteristics of Land Scarcity Modification Fixity Situs (location preference) ©OnCourse Learning. All Rights Reserved.

Multiple Meanings of the Word Value Value or worth is affected by the purpose for which the valuation was performed. Assessed value is value given a property by the county tax assessor for taxation Estate tax value is what authorities establish for a deceased person’s property Insurance value is concerned with the cost of replacing damaged property Loan value is set on a property for the purpose of making a loan ©OnCourse Learning. All Rights Reserved.

Key Terms Assessed value Base line Estate tax value Fixture Improvements Insurance value Loan value Base Line Fixtures Improvements Meridians Metes & Bounds Monument Personal property Real Estate Recorded Plat Riparian Rights ©OnCourse Learning. All Rights Reserved.