Chapter 4: Property

Property
I. Real Property
A. Allodial System: A political/economic system that allows for the private ownership of real
property is called an allodial system. The American Indian had a non-allodial system, but
capitalism is an allodial system.
B. Definition of real property: The land, all that is attached or appurtenant to the land; the
subsurface to the center of the earth, and the air space to infinity.
1. Appurtenant: Refers to things that are attached to the land or the deed. A fence is
appurtenant to the land, whereas an easement would be considered appurtenant to the deed.
2. Though the terms real property and real estate are used interchangeably by the most people,
technically real property refers to intangible rights whereas real estate refers to the tangible
or physical property. (The intangible rights referred to are discussed in detail in the
Ownership class.)
C. Water rights, mineral rights, and air rights are considered real property. Water rights for the
state of Utah are discussed in more detail in the Real Estate Acts B class.
D. Physical characteristics of real property
1. Immobility: the land is immovable.
2. Indestructibility: You can change the character of real property, but you still have the
same amount of land. In other words, the property description remains unchanged; and,
therefore, you have the same amount of real property.
3. Non-homogeneous: No two parcels of real property are the same.
E. Economic characteristics of real property
1. Scarcity: There is a fixed amount of real property. Its scarcity adds to its value. Since
there is no increase in the amount of land available, and since the population continues to
grow, the law of supply and demand applies.
2. Improvements: Land can be improved or modified, adding to the value of the real
property. These manmade modifications are known as improvements. Property can be
over improved, thus detracting from the value.
3. Location: The location of the land affects its value. Location is referred to as “situs.”
Situs also refers to a personal preference for one location over another.
4. Residential Property: Defined as real property consisting of, or improved by, a single-
family one to four-unit dwelling.
F. When a sale of real property takes place by the passing of a deed, the buyer obtains title to
the real property, and the seller retains ownership of the personal property, unless both agree
otherwise.

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G. Lateral Support: Support given to adjoining land, such as building a retaining wall.
H. Corporeal Property: The term used to describe something which is physical or tangible. It
could be real or personal property, such as a building, a car, etc. “Incorporeal” is the term for
intangible assets such as an easement or leasehold right.
II. Addition To and Loss of Real Property
There are several ways that real property can be added to or lost from that which already exists.
They include:
A. Severance: The process of turning real property into personal property by separating it from the
real property. Thus, the personal property has been “severed.” For example, a tree growing in a
yard is real property. When it is cut down, it becomes personal property by severance.
B. Accession: The opposite of severance. It is the process of adding to the real property by man
(hauling in dirt, building a house) or nature (such as a mud slide or earthquake). Improvements
is the term used to define additions made by man alone, such as buildings, utilities, roads, and
landscaping.
III. Personal Property
A. Definition: That which is severed from real property.
B. Synonyms: Personalty, chattel.
C. Characteristics of personal property
1. Any property that is not real property is personal property.
2. Personal property is considered movable.
3. It is temporary and considered a deteriorating or depreciating asset.
D. The transfer or sale of personal property is documented with a “Bill of Sale.”
IV. Fixtures
A. Definition: that which is attached to the real property without losing its identity.
B. Fixtures are always considered real property.
C. Whether or not an object is considered a fixture is determined by the intent of the parties.
Following are the tests the court would use to determine if the item in question is a fixture:
1. Manner it was attached to the real property (annexation)
2. Whether the property is adapted around the item
3. Intent of the owner
4. If an agreement is in place that addresses a fixture issue, the agreement will control.
V. Trade Fixtures
A. Definition: that which is attached to a trade or business.

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B. Trade fixtures are always personal property.

C. They may or may not be attached to the real property, but are sold as personal property. Any
damage to the real property must be repaired after their removal.
VI. Emblements
A. Definition: Crops nurtured in the year of the sale or the lease.
B. Emblements are considered personal property.
C. When a property is sold during the growing season, the seller retains the right to harvest the crop,
unless negotiated otherwise.
D. A landlord cannot terminate the lease of a tenant farmer without giving the tenant the right to
reenter the land and harvest his crops.

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Property Terms to Know

̑̑ Accession
̑̑ Allodial
̑̑ Appurtenant
̑̑ Bill of Sale
̑̑ Chattel
̑̑ Corporeal
̑̑ Deed
̑̑ Emblements
̑̑ Fixture
̑̑ Improvements
̑̑ Incorporeal
̑̑ Lateral Support
̑̑ Mineral Rights
̑̑ Non-homogeneous
̑̑ Personal Property
̑̑ Personalty
̑̑ Real Property
̑̑ Severance
̑̑ Situs
̑̑ Trade Fixture

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Property Quiz
1. Which of the following is NOT a test of a fixture?
A. The intention of the person who attached it, as expressed in a listing agreement
B. The cost of the item
C. How the item was attached to the real property
D. What was agreed to in the Real Estate Purchase Agreement
2. Situs refers to which of the following?
A. Location
B. Fixtures
C. Emblements
D. Lateral support
3. A display cabinet in a retail store would be considered:
A. a trade fixture and real property
B. a trade fixture and personal property
C. a fixture and real property
D. a fixture and personal property
4. If an item has been severed from real property, it would NOT be considered which of the
following?
A. Chattel
B. Personalty
C. Appurtenant
D. Personal Property
5. When building a retaining wall, which of the following is the owner of the land providing?
A. Lateral Support
B. Emblement
C. Accession
D. Severance
6. “Attached to the land or the deed,” defines:
A. Accession
B. Appurtenant
C. Alienation
D. Acceleration

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7. Crops which have been nurtured in the year of the transfer are considered:
A. Trade fixtures
B. Appurtenant
C. An example of severance
D. Emblements
8. Water or mineral rights would be considered:
A. Personal property
B. Real property
C. It depends on how they’re used
D. They are rights, not a kind of property
9. Which of the following is a true statement about trade fixtures?
A. Attachment is not an issue one way or the other.
B. The method of attachment is significant.
C. Whether the business owns the property or is renting it is important.
D. Only attached items are considered trade fixtures.
10. Which of the following would be considered chattel?
A. Fence
B. Water right
C. Tractor
D. Barn
11. “No two parcels of real property are exactly the same,” is the definition of:
A. A fixture
B. An emblements
C. Subterranean support
D. Non-homogeneous
12. Which of the following is true?
A. A bill of sale transfers ownership to real property only.
B. A bill of sale can transfer ownership to real property and/or personal property.
C. A deed transfers ownership to real property only.
D. A deed typically transfers ownership to real property, but can transfer ownership to personal
property if provided for in the Real Estate Purchase Agreement.

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13. The process of nature adding to the real property is called:

A. Situs
B. Accession
C. Severance
D. Improvement
14. A barber’s chair in a barber shop would be considered:
A. A fixture
B. A trade fixture
C. Emblements
D. Alluvion
15. When real property is detached from real property, it is a process called:
A. Situs
B. Severance
C. Accession
D. Appurtenant

ANSWERS TO THIS QUIZ ARE FOUND IN THE “QUIZ ANSWERS” SECTION.

SEE TABLE OF CONTENTS

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