Unit 1 Summary

Introduction to Pennsylvania Real Estate

Pennsylvania Real Estate Fundamentals

Corporeal: actual possession of the property. Incorporeal: rights in a property, rather than possession of land.

Freehold: an ownership in real property, an estate. Leasehold: a possession of real estate such as leasing rather
than ownership; an estate.

Interest is a right, a claim, title or legal share in a property.

Real Estate includes:

Land plus appurtenances (rights, privileges, and improvements that belong to and pass with the transfer
of the property).
Man-made appurtenances like houses, fences, barns, swimming pools, (man-made items that are added
to the property).
Natural appurtenances (made by nature) such as trees, creeks and streams.
Air rights, gas rights, solar rights, light and sound rights, mineral rights, and surface rights. Each of these
can be sold separately.
Water rights (littoral, riparian and prior appropriation.)

All property in the United States is under the allodial system.

The bundle of rights is the beneficial interests associated with real property interests. Livery of Seisin - "I own it
and I have the right to sell it."

Physical characteristics of land: Immobility, Indestructibility and Heterogeneity.

The Five Economic characteristics of land:

1. Demand
2. Utility
3. Scarcity
4. Transferability
5. Situs

Water rights - Doctrine of Prior Appropriation requires that property owners obtain permits for use of water.

Littoral rights concern properties that border bodies of water that are not moving.
Riparian rights concern properties that border moving water such as streams and rivers.

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Updated 5/30/2017
 Unit 1 Summary
Introduction to Pennsylvania Real Estate

Pennsylvania Real Estate Fundamentals

Land gain or loss due the action of water:

Accretion- increase of land through natural causes.
Erosion- land eroding or worn away by water or ice.
Avulsion- the sudden tearing away of land by a river or flood.
Reliction - the recession of water gradually leaving land
Alluvion- an increase of land on a river bank or shoreline by the act of water.

Air rights can be sold separately from the land. A scenic easement may be sold so another building cannot be
built to block the view. A light and air easement stops a building from blocking the light of another.

Emblements or fructus industriales and are considered personal property. Trees that do not require annual
cultivation are known as fructus naturales and are considered real property.

Annexation: changes personal property to real property. Severance: changes the real property to personal
property.

Personal property (chattels) is portable, readily movable from one location to another.

A fixture is something that once was personal property but has been installed to real property. An appurtenance
is a right, privilege, or improvement that belongs to and passes with the transfer of property. Legal test to see if an
item has become a fixture:

Method of Annexation
Adaptability
Intent of the Parties
Damage

Personal Property should always be transferred by a Bill of Sale.

A Trade Fixture is personal property and can be removed by the tenant at any time before the end of the lease.
Damage caused by removal of the trade fixture must be repaired by the tenant.