NC Real Estate Exam Prep: Chapter 2.1 | Property Ownership & Interests

Summary

In this informative video, Sean Kelly delves into property ownership and interest, breaking down essential concepts into digestible segments. He introduces the 'bundle of rights' using the acronym DEEP SEA, discusses appurtenances, and clarifies subsurface, air, and water rights. The distinction between personal property and fixtures is emphasized, highlighting how intent influences property classification. With practical examples, Kelly explains the nuances of trade fixtures and key terminologies like severance and annexation. This video serves as a comprehensive guide for those looking to navigate the complexities of real estate.

Takeaways

• 😀 The Bundle of Rights acronym 'D.E.E.P.S.E.A' helps remember the key rights of property ownership: Disposition, Exclusion, Enjoyment, Possession, and Control.
• 🏠 Appurtenances are rights and items associated with a property that remain with the land, including both tangible and intangible elements.
• ⛏️ Subsurface rights allow landowners to access resources beneath their land, like minerals and oil, which can be sold separately.
• ☁️ Air rights refer to ownership of the space above the land, which can be impacted by structures like cellphone towers and balconies.
• 💧 Water rights include Riparian (for non-navigable waters) and Littoral (for navigable waters), determining property boundaries based on water sources.
• 📦 Personal property (personalty) refers to movable items that do not automatically transfer with the property unless specified in the sale contract.
• 🔨 Fixtures are items that transition from personal property to real property once they are affixed to the land, influenced by the owner's intention.
• 🛠️ Trade fixtures are personal property used for business purposes that remain with the tenant unless otherwise agreed upon in the lease.
• 🌱 Severance is the process of removing fixtures from property, while annexation is converting personal property into real property.
• 🌾 Harvesting rights allow a previous owner to return and collect crops they've grown on sold land, illustrating the principle of 'implements'.

Q & A

What is the main topic of Chapter 2 in the video?

Chapter 2 focuses on property ownership and interest, covering various aspects like the bundle of rights, appurtenances, and water rights.

What does the acronym DEEP SEA represent in the context of property rights?

DEEP SEA stands for Disposition, Exclusion, Enjoyment, Possession, and Control, which are the rights associated with property ownership.

What are appurtenances, and how do they relate to property?

Appurtenances are items or rights that run with the land, including tangible items like trees and intangible rights like easements, which remain with the property when it is sold.

How do subsurface rights differ from surface rights?

Subsurface rights refer to the ownership of minerals and resources beneath the land, while surface rights pertain to the ownership of the land itself and what is on it.

What are the two major categories of water rights mentioned in the video?

The two major categories are riparian rights, which apply to river water, and littoral rights, which apply to lakes and oceans.

What is the significance of the term 'severance' in real estate?

Severance refers to the process of separating real property from personal property, such as chopping down a tree and converting it into firewood.

Can personal property become real property? How?

Yes, personal property can become real property through a process called annexation, where items are affixed to the land, like installing a ceiling fan.

What is the distinction between trade fixtures and regular fixtures?

Trade fixtures are typically installed by a tenant for business purposes and remain personal property, while regular fixtures are affixed to the property and are considered real property.

What is an example of a personal property item that must be included in a sales contract?

An example is a refrigerator, which is not considered a fixture. If the buyer wants it included, it must be specified in the contract.

What does the video suggest about the relationship between property rights and neighboring properties?

The video discusses support rights, stating that neighboring properties cannot disrupt your land, such as by excavating, to prevent your land from collapsing.