Modern Real Estate Practice in Pennsylvania Fourteenth Edition

• Learning objectives – Identify the rights that convey with ownership of real

• Land: the earth’s surface extending downward to the center of the earth

• Bundle of rights – Right of possession – Right to control the

• Real property rights – Surface rights – Subsurface rights – Air rights

• Subsurface rights – Natural resources below earth’s surface – Multiple owners have

• Personal property (all property that does not fit the definition of real

In Pennsylvania – Manufactured Housing • • © 2020 Kaplan, Inc. Nonremoveable steel chassis

In Pennsylvania – Real Estate Brokers may legally broker resale of mobile and manufactured

• Plants • Fixtures – Intent – Method of annexation – Adaptation to

• Trade fixtures: owned and installed by tenant for business use – Are

• Economic characteristics – Scarcity – Improvements – Permanence of investment – Area

• Mine subsidence – Downward land shifts – Due to collapse of underground

• • General property law Environmental laws Contract laws Agency laws Fair housing

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Modern Real Estate Practice in Pennsylvania Fourteenth Edition Unit 1: Real Property and the Law 1

• Learning objectives – Identify the rights that convey with ownership of real property and the characteristics of real estate – Describe the difference between real and personal property – Distinguish between the physical, economic, and social characteristics of land – Discuss the types of law that affect real estate © 2020 Kaplan, Inc. 2

Land, Real Estate, and Real Property

• Land: the earth’s surface extending downward to the center of the earth and upward to infinity, including permanent natural objects • Real estate: land at, above, and below the earth’s surface, plus all things permanently attached to it, whether natural or artificial • Real property: the interests, benefits, and rights that are automatically included in the ownership of land real estate © 2020 Kaplan, Inc. 4

• Subsurface rights – Natural resources below earth’s surface – Multiple owners have interest in same parcel • Coal owner • Natural gas owner • Farmhouse and stable owner • Other rights © 2020 Kaplan, Inc. 9

Real Property Versus Personal Property

In Pennsylvania – Manufactured Housing • • © 2020 Kaplan, Inc. Nonremoveable steel chassis Minimum: 8 feet x 40 feet (320 square feet) Capable of being lived in without a permanent foundation Contains a red label indicating compliance with Department of Housing and Urban Development (HUD) standards 12

In Pennsylvania – Real Estate Brokers may legally broker resale of mobile and manufactured homes if the following conditions exist: • “Land lease” assigned or land transferred • Mobile home permanently attached to foundation • Registration as vehicle cancelled © 2020 Kaplan, Inc. 13

• Trade fixtures: owned and installed by tenant for business use – Are removable – Are personal property. – Are removed before the end of the lease • After lease termination, become property of landlord • Agriculture: personal property – Chicken coops – Tool sheds © 2020 Kaplan, Inc. 16

Characteristics of Real Estate

• Economic characteristics – Scarcity – Improvements – Permanence of investment – Area preference or location • Physical characteristics – Immobility – Indestructibility – Uniqueness © 2020 Kaplan, Inc. 18

• Mine subsidence – Downward land shifts – Due to collapse of underground mine shafts and underground water flows – Creates sinkholes or troughs – Damage • Functional • Cosmetic • Structural © 2020 Kaplan, Inc. 19

Laws Affecting Real Estate